209.05 USD
-6.84 (-3.17%)
209.05 USD
0 (0%)
Taking everything into account, CRAI scores 6 out of 10 in our fundamental rating. CRAI was compared to 87 industry peers in the Professional Services industry. While CRAI has a great profitability rating, 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
- CRAI had positive earnings in the past year.
- 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 Return On Assets of 8.98%. This is in the better half of the industry: CRAI outperforms 77.27% of its industry peers.
- Looking at the Return On Equity, with a value of 28.00%, CRAI belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
- CRAI's Return On Invested Capital of 15.68% is amongst the best of the industry. CRAI outperforms 82.95% of its industry peers.
- CRAI had an Average Return On Invested Capital over the past 3 years of 13.88%. This is above the industry average of 11.85%.
- The 3 year average ROIC (13.88%) for CRAI is below the current ROIC(15.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 28% | ||
| ROIC | 15.68% |
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
- With a decent Profit Margin value of 7.72%, CRAI is doing good in the industry, outperforming 73.86% of the companies in the same industry.
- CRAI's Profit Margin has improved in the last couple of years.
- CRAI has a Operating Margin of 11.48%. This is in the better half of the industry: CRAI outperforms 73.86% of its industry peers.
- In the last couple of years the Operating Margin of CRAI has grown nicely.
- With a Gross Margin value of 31.48%, CRAI perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
- In the last couple of years the Gross Margin of CRAI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.48% | ||
| PM (TTM) | 7.72% | ||
| GM | 31.48% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRAI is creating some value.
- Compared to 1 year ago, CRAI has less shares outstanding
- The number of shares outstanding for CRAI has been reduced compared to 5 years ago.
- CRAI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- CRAI has an Altman-Z score of 3.94. This indicates that CRAI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of CRAI (3.94) is better than 75.00% of its industry peers.
- The Debt to FCF ratio of CRAI is 3.34, which is a good value as it means it would take CRAI, 3.34 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CRAI (3.34) is better than 65.91% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that CRAI is not too dependend on debt financing.
- The Debt to Equity ratio of CRAI (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.77
WACC8.88%
2.3 Liquidity
- CRAI has a Current Ratio of 0.90. 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 Current ratio of 0.90. This is in the lower half of the industry: CRAI underperforms 77.27% of its industry peers.
- A Quick Ratio of 0.90 indicates that CRAI may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.90, CRAI is doing worse than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.91% over the past year.
- Measured over the past years, CRAI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.24% on average per year.
- CRAI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.69%.
- CRAI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.78% yearly.
EPS 1Y (TTM)13.91%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%16.38%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%10.82%
3.2 Future
- Based on estimates for the next years, CRAI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.06% on average per year.
- Based on estimates for the next years, CRAI will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
EPS Next Y10.74%
EPS Next 2Y9.4%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue Next Year9.94%
Revenue Next 2Y6.76%
Revenue Next 3Y5.43%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- 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
- CRAI is valuated quite expensively with a Price/Earnings ratio of 25.53.
- 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 (27.21), we can say CRAI is valued inline with the index average.
- CRAI is valuated rather expensively with a Price/Forward Earnings ratio of 23.01.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CRAI is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CRAI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 23.01 |
4.2 Price Multiples
- CRAI's Enterprise Value to EBITDA is on the same level as the industry average.
- CRAI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.25 | ||
| EV/EBITDA | 15.64 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRAI does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of CRAI may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)1.26
EPS Next 2Y9.4%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
- CRAI has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.44, CRAI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.06, CRAI pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
- On average, the dividend of CRAI grows each year by 24.11%, which is quite nice.
- CRAI has been paying a dividend for at least 10 years, so it has 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 24.00% 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.
DP24%
EPS Next 2Y9.4%
EPS Next 3Y10.06%
CRA INTERNATIONAL INC / CRAI FAQ
What is the fundamental rating for CRAI stock?
ChartMill assigns a fundamental rating of 6 / 10 to CRAI.
What is the valuation status for CRAI stock?
ChartMill assigns a valuation rating of 3 / 10 to CRA INTERNATIONAL INC (CRAI). This can be considered as Overvalued.
How profitable is CRA INTERNATIONAL INC (CRAI) stock?
CRA INTERNATIONAL INC (CRAI) has a profitability rating of 8 / 10.
How financially healthy is CRA INTERNATIONAL INC?
The financial health rating of CRA INTERNATIONAL INC (CRAI) is 5 / 10.
How sustainable is the dividend of CRA INTERNATIONAL INC (CRAI) stock?
The dividend rating of CRA INTERNATIONAL INC (CRAI) is 5 / 10 and the dividend payout ratio is 24%.