CRA INTERNATIONAL INC (CRAI) Stock Fundamental Analysis
NASDAQ:CRAI - Nasdaq - US12618T1051 - Common Stock - Currency: USD
Overall CRAI gets a fundamental rating of 5 out of 10. We evaluated CRAI against 81 industry peers in the Professional Services industry. CRAI has an excellent profitability rating, but there are some minor concerns on its financial health. CRAI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years CRAI had a positive operating cash flow.
1.2 Ratios
CRAI has a better Return On Assets (9.30%) than 80.25% of its industry peers.
Looking at the Return On Equity, with a value of 28.64%, CRAI belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.97%, CRAI belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRAI is in line with the industry average of 12.50%.
The 3 year average ROIC (13.88%) for CRAI is below the current ROIC(14.97%), indicating increased profibility in the last year.
| 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
CRAI's Profit Margin of 7.91% is fine compared to the rest of the industry. CRAI outperforms 75.31% of its industry peers.
CRAI's Profit Margin has improved in the last couple of years.
CRAI's Operating Margin of 11.94% is fine compared to the rest of the industry. CRAI outperforms 79.01% of its industry peers.
In the last couple of years the Operating Margin of CRAI has grown nicely.
Looking at the Gross Margin, with a value of 32.02%, CRAI is in line with its industry, outperforming 41.98% of the companies in the same 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRAI is still creating some value.
The number of shares outstanding for CRAI has been reduced compared to 1 year ago.
Compared to 5 years ago, CRAI has less shares outstanding
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 3.91. This indicates that CRAI is financially healthy and has little risk of bankruptcy at the moment.
CRAI has a better Altman-Z score (3.91) than 70.37% of its industry peers.
The Debt to FCF ratio of CRAI is 5.68, which is a neutral value as it means it would take CRAI, 5.68 years of fcf income to pay off all of its debts.
CRAI's Debt to FCF ratio of 5.68 is in line compared to the rest of the industry. CRAI outperforms 48.15% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 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 | 3.91 |
ROIC/WACC1.68
WACC8.93%
2.3 Liquidity
A Current Ratio of 0.92 indicates that CRAI may have some problems paying its short term obligations.
CRAI's Current ratio of 0.92 is on the low side compared to the rest of the industry. CRAI is outperformed by 76.54% 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.
With a Quick ratio value of 0.92, CRAI is not doing good in the industry: 76.54% of the companies in the same industry are doing better.
| 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
Looking at the last year, CRAI shows a quite strong growth in Revenue. The Revenue has grown by 9.27% in the last year.
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
Based on estimates for the next years, CRAI will show a small growth in Earnings Per Share. The EPS will grow by 7.38% on average per year.
Based on estimates for the next years, CRAI will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
EPS Next Y8.09%
EPS Next 2Y7.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.86%
Revenue Next 2Y5.67%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.22 indicates a rather expensive valuation of CRAI.
Compared to the rest of the industry, the Price/Earnings ratio of CRAI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CRAI to the average of the S&P500 Index (26.76), we can say CRAI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.86, the valuation of CRAI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CRAI.
CRAI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRAI indicates a somewhat cheap valuation: CRAI is cheaper than 74.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CRAI is valued a bit more expensive than 64.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.6 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CRAI may justify a higher PE ratio.
PEG (NY)2.99
PEG (5Y)1.2
EPS Next 2Y7.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRAI has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 2.27, CRAI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CRAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of CRAI is nicely growing with an annual growth rate of 24.11%!
CRAI has been paying a dividend for at least 10 years, so it has a reliable track record.
CRAI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)24.11%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
23.36% of the earnings are spent on dividend by CRAI. This is a low number and sustainable payout ratio.
CRAI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.36%
EPS Next 2Y7.38%
EPS Next 3YN/A
191.34
+1.55 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.24%
Inst Owner Change0.54%
Ins Owners3.94%
Ins Owner Change-3.72%
Market Cap1.26B
Analysts82.5
Price Target240.72 (25.81%)
Short Float %2.91%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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)-0.63%
PT rev (3m)0.21%
EPS NQ rev (1m)-3.05%
EPS NQ rev (3m)-4.09%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 21.86 | ||
| P/S | 1.77 | ||
| P/FCF | 59.6 | ||
| P/OCF | 34.15 | ||
| P/B | 6.39 | ||
| P/tB | 13.17 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)7.9
EY4.13%
EPS(NY)8.75
Fwd EY4.57%
FCF(TTM)3.21
FCFY1.68%
OCF(TTM)5.6
OCFY2.93%
SpS108.35
BVpS29.94
TBVpS14.53
PEG (NY)2.99
PEG (5Y)1.2
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 | 3.91 |
F-Score6
WACC8.93%
ROIC/WACC1.68
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 Y8.09%
EPS Next 2Y7.38%
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 Year6.86%
Revenue Next 2Y5.67%
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%