CRA INTERNATIONAL INC (CRAI) Stock Fundamental Analysis
NASDAQ:CRAI - Nasdaq - US12618T1051 - Common Stock - Currency: USD
CRAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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.
In the past year CRAI had a positive cash flow from operations.
Each year in the past 5 years CRAI has been profitable.
In the past 5 years CRAI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CRAI (8.61%) is better than 76.83% of its industry peers.
CRAI has a Return On Equity of 22.36%. This is in the better half of the industry: CRAI outperforms 71.95% of its industry peers.
With an excellent Return On Invested Capital value of 13.64%, CRAI belongs to the best of the industry, outperforming 81.71% 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 12.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 22.36% | ||
| ROIC | 13.64% |
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 has a Profit Margin of 7.29%. This is in the better half of the industry: CRAI outperforms 73.17% of its industry peers.
In the last couple of years the Profit Margin of CRAI has grown nicely.
Looking at the Operating Margin, with a value of 10.99%, CRAI is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Operating Margin of CRAI has grown nicely.
CRAI has a Gross Margin (30.98%) which is comparable to the rest of the 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 | 10.99% | ||
| PM (TTM) | 7.29% | ||
| GM | 30.98% |
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.
CRAI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CRAI has been reduced compared to 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 4.27. This indicates that CRAI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.27, CRAI is doing good in the industry, outperforming 74.39% of the companies in the same industry.
The Debt to FCF ratio of CRAI is 5.33, which is a neutral value as it means it would take CRAI, 5.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRAI (5.33) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.37 indicates that CRAI is not too dependend on debt financing.
CRAI's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. CRAI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.51
WACC9.05%
2.3 Liquidity
CRAI has a Current Ratio of 1.03. This is a normal value and indicates that CRAI is financially healthy and should not expect problems in meeting its short term obligations.
CRAI's Current ratio of 1.03 is on the low side compared to the rest of the industry. CRAI is outperformed by 70.73% of its industry peers.
A Quick Ratio of 1.03 indicates that CRAI should not have too much problems paying its short term obligations.
The Quick ratio of CRAI (1.03) is worse than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.85% over the past year.
The Earnings Per Share has been growing by 20.24% on average over the past years. This is a very strong growth
CRAI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
The Revenue has been growing by 8.78% on average over the past years. This is quite good.
EPS 1Y (TTM)27.85%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%13.27%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%5.86%
3.2 Future
The Earnings Per Share is expected to grow by 8.03% on average over the next years. This is quite good.
CRAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y8.52%
EPS Next 2Y8.03%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 23.54, which indicates a rather expensive current valuation of CRAI.
The rest of the industry has a similar Price/Earnings ratio as CRAI.
CRAI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.86, the valuation of CRAI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRAI is on the same level as its industry peers.
CRAI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 20.86 |
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 60.98% of the companies listed in the same industry.
67.07% of the companies in the same industry are cheaper than CRAI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.88 | ||
| EV/EBITDA | 13.86 |
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.
CRAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)1.16
EPS Next 2Y8.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRAI has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.12, CRAI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, CRAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
On average, the dividend of CRAI grows each year by 24.11%, which is quite nice.
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
25.01% 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.
DP25.01%
EPS Next 2Y8.03%
EPS Next 3YN/A
184.79
+0.63 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.48%
Inst Owner Change0.07%
Ins Owners4.09%
Ins Owner Change-1.15%
Market Cap1.26B
Analysts82.5
Price Target242.25 (31.09%)
Short Float %1.89%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend1.8
Dividend Growth(5Y)24.11%
DP25.01%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.36%
Min EPS beat(2)11.61%
Max EPS beat(2)23.1%
EPS beat(4)4
Avg EPS beat(4)16.04%
Min EPS beat(4)9.83%
Max EPS beat(4)23.1%
EPS beat(8)7
Avg EPS beat(8)16.09%
EPS beat(12)9
Avg EPS beat(12)13.32%
EPS beat(16)13
Avg EPS beat(16)18.74%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)0.94%
Max Revenue beat(2)3.69%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)3.69%
Revenue beat(8)5
Avg Revenue beat(8)0.63%
Revenue beat(12)5
Avg Revenue beat(12)-0.4%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0.85%
PT rev (3m)12.56%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)2.65%
EPS NY rev (3m)5.05%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 20.86 | ||
| P/S | 1.8 | ||
| P/FCF | 78.88 | ||
| P/OCF | 38.34 | ||
| P/B | 5.54 | ||
| P/tB | 9.96 | ||
| EV/EBITDA | 13.86 |
EPS(TTM)7.85
EY4.25%
EPS(NY)8.86
Fwd EY4.79%
FCF(TTM)2.34
FCFY1.27%
OCF(TTM)4.82
OCFY2.61%
SpS102.42
BVpS33.38
TBVpS18.55
PEG (NY)2.76
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 22.36% | ||
| ROCE | 23.97% | ||
| ROIC | 13.64% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 19.84% | ||
| OM | 10.99% | ||
| PM (TTM) | 7.29% | ||
| GM | 30.98% | ||
| FCFM | 2.29% |
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-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 137.18% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 18.32 | ||
| Cash Conversion | 36.89% | ||
| Profit Quality | 31.38% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.27 |
F-Score7
WACC9.05%
ROIC/WACC1.51
Cap/Depr(3y)64.86%
Cap/Depr(5y)69.64%
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)27.85%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%13.27%
EPS Next Y8.52%
EPS Next 2Y8.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.47%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%5.86%
Revenue Next Year6.86%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.83%
EBIT growth 3Y8.3%
EBIT growth 5Y19.28%
EBIT Next Year38.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.86%
FCF growth 3Y-23.19%
FCF growth 5Y24.34%
OCF growth 1Y94.09%
OCF growth 3Y-13.07%
OCF growth 5Y12.31%