CRA INTERNATIONAL INC (CRAI) Stock Fundamental Analysis
NASDAQ:CRAI - US12618T1051 - Common Stock
198.59 USD
+5.34 (+2.76%)
198.59 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CRAI. CRAI was compared to 82 industry peers in the Professional Services industry. While CRAI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, CRAI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CRAI was profitable.
CRAI had a positive operating cash flow in the past year.
CRAI had positive earnings in each of the past 5 years.
CRAI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CRAI's Return On Assets of 9.30% is fine compared to the rest of the industry. CRAI outperforms 79.27% of its industry peers.
With an excellent Return On Equity value of 28.64%, CRAI belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
CRAI's Return On Invested Capital of 14.97% is amongst the best of the industry. CRAI outperforms 81.71% of its industry peers.
CRAI had an Average Return On Invested Capital over the past 3 years of 13.88%. This is in line with the industry average of 12.76%.
The last Return On Invested Capital (14.97%) for CRAI is above the 3 year average (13.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.3% | ||
| ROE | 28.64% | ||
| ROIC | 14.97% |
ROA(3y)7.66%
ROA(5y)6.96%
ROE(3y)20.2%
ROE(5y)18.49%
ROIC(3y)13.88%
ROIC(5y)12.07%
1.3 Margins
The Profit Margin of CRAI (7.91%) is better than 75.61% of its industry peers.
CRAI's Profit Margin has improved in the last couple of years.
The Operating Margin of CRAI (11.94%) is better than 76.83% of its industry peers.
In the last couple of years the Operating Margin of CRAI has grown nicely.
CRAI has a Gross Margin (32.02%) which is comparable to the rest of the industry.
CRAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.94% | ||
| PM (TTM) | 7.91% | ||
| GM | 32.02% |
OM growth 3Y1.5%
OM growth 5Y9.66%
PM growth 3Y-2.64%
PM growth 5Y8.1%
GM growth 3Y0.98%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
CRAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CRAI has less shares outstanding than it did 1 year ago.
CRAI has less shares outstanding than it did 5 years ago.
There is no outstanding debt for CRAI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CRAI has an Altman-Z score of 3.98. This indicates that CRAI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRAI (3.98) is better than 69.51% of its industry peers.
CRAI has a debt to FCF ratio of 5.68. This is a neutral value as CRAI would need 5.68 years to pay back of all of its debts.
CRAI has a Debt to FCF ratio (5.68) which is comparable to the rest of the industry.
CRAI has a Debt/Equity ratio of 0.61. This is a neutral value indicating CRAI is somewhat dependend on debt financing.
CRAI has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 3.98 |
ROIC/WACC1.72
WACC8.68%
2.3 Liquidity
CRAI has a Current Ratio of 0.92. This is a bad value and indicates that CRAI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CRAI (0.92) is worse than 76.83% of its industry peers.
CRAI has a Quick Ratio of 0.92. This is a bad value and indicates that CRAI is not financially healthy enough and could expect problems in meeting its short term obligations.
CRAI has a worse Quick ratio (0.92) than 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
CRAI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.61%, which is quite impressive.
The Earnings Per Share has been growing by 20.24% on average over the past years. This is a very strong growth
The Revenue has grown by 9.27% in the past year. This is quite good.
The Revenue has been growing by 8.78% on average over the past years. This is quite good.
EPS 1Y (TTM)20.61%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%2.73%
Revenue 1Y (TTM)9.27%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%9%
3.2 Future
CRAI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
CRAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y8.23%
EPS Next 2Y8.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.39%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.14, which means the current valuation is very expensive for CRAI.
Compared to the rest of the industry, the Price/Earnings ratio of CRAI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.43. CRAI is around the same levels.
With a Price/Forward Earnings ratio of 22.33, CRAI is valued on the expensive side.
CRAI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.87. CRAI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRAI is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
CRAI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CRAI is more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.85 | ||
| EV/EBITDA | 10.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CRAI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)1.24
EPS Next 2Y8.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRAI has a yearly dividend return of 1.00%, which is pretty low.
CRAI's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.45, CRAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of CRAI is nicely growing with an annual growth rate of 24.11%!
CRAI has paid a dividend for at least 10 years, which is a reliable track record.
As CRAI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)24.11%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
CRAI pays out 23.36% of its income as dividend. This is a sustainable payout ratio.
The dividend of CRAI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.36%
EPS Next 2Y8.25%
EPS Next 3YN/A
198.59
+5.34 (+2.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.24%
Inst Owner Change0.53%
Ins Owners3.94%
Ins Owner Change-4.12%
Market Cap1.31B
Analysts82.5
Price Target244.29 (23.01%)
Short Float %3.19%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.8
Dividend Growth(5Y)24.11%
DP23.36%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.98%
Min EPS beat(2)0.35%
Max EPS beat(2)11.61%
EPS beat(4)4
Avg EPS beat(4)11.22%
Min EPS beat(4)0.35%
Max EPS beat(4)23.1%
EPS beat(8)7
Avg EPS beat(8)15.81%
EPS beat(12)9
Avg EPS beat(12)11.59%
EPS beat(16)13
Avg EPS beat(16)14.89%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.94%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)3.69%
Revenue beat(8)5
Avg Revenue beat(8)0.72%
Revenue beat(12)6
Avg Revenue beat(12)-0.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)1.48%
PT rev (3m)1.7%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)-4.09%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 22.33 | ||
| P/S | 1.83 | ||
| P/FCF | 61.85 | ||
| P/OCF | 35.45 | ||
| P/B | 6.63 | ||
| P/tB | 13.67 | ||
| EV/EBITDA | 10.64 |
EPS(TTM)7.9
EY3.98%
EPS(NY)8.89
Fwd EY4.48%
FCF(TTM)3.21
FCFY1.62%
OCF(TTM)5.6
OCFY2.82%
SpS108.35
BVpS29.94
TBVpS14.53
PEG (NY)3.06
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.3% | ||
| ROE | 28.64% | ||
| ROCE | 29.41% | ||
| ROIC | 14.97% | ||
| ROICexc | 15.72% | ||
| ROICexgc | 21.24% | ||
| OM | 11.94% | ||
| PM (TTM) | 7.91% | ||
| GM | 32.02% | ||
| FCFM | 2.96% |
ROA(3y)7.66%
ROA(5y)6.96%
ROE(3y)20.2%
ROE(5y)18.49%
ROIC(3y)13.88%
ROIC(5y)12.07%
ROICexc(3y)15.53%
ROICexc(5y)13.83%
ROICexgc(3y)23.95%
ROICexgc(5y)21.04%
ROCE(3y)19.28%
ROCE(5y)16.76%
ROICexcg growth 3Y6.51%
ROICexcg growth 5Y24.79%
ROICexc growth 3Y6.14%
ROICexc growth 5Y22.57%
OM growth 3Y1.5%
OM growth 5Y9.66%
PM growth 3Y-2.64%
PM growth 5Y8.1%
GM growth 3Y0.98%
GM growth 5Y0.39%
F-Score6
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 43.83% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 19.88 | ||
| Cash Conversion | 30.46% | ||
| Profit Quality | 37.44% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.98 |
F-Score6
WACC8.68%
ROIC/WACC1.72
Cap/Depr(3y)34.29%
Cap/Depr(5y)51.3%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.45%
Profit Quality(3y)90.22%
Profit Quality(5y)120.14%
High Growth Momentum
Growth
EPS 1Y (TTM)20.61%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%2.73%
EPS Next Y8.23%
EPS Next 2Y8.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.27%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%9%
Revenue Next Year8.39%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y44.63%
EBIT growth 3Y8.3%
EBIT growth 5Y19.28%
EBIT Next Year41.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.2%
FCF growth 3Y-23.19%
FCF growth 5Y24.34%
OCF growth 1Y-5.35%
OCF growth 3Y-13.07%
OCF growth 5Y12.31%