CARTER'S INC (CRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRI - US1462291097 - Common Stock
31.96 USD
-0.53 (-1.63%)
31.96 USD
0 (0%)
Overall CRI gets a fundamental rating of 5 out of 10. We evaluated CRI against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI has an average financial health and profitability rating. CRI is cheap, but on the other hand it scores bad on growth. With these ratings, CRI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
CRI had positive earnings in the past year.
In the past year CRI had a positive cash flow from operations.
Each year in the past 5 years CRI has been profitable.
Each year in the past 5 years CRI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CRI (3.52%) is better than 62.22% of its industry peers.
With a decent Return On Equity value of 10.06%, CRI is doing good in the industry, outperforming 64.44% of the companies in the same industry.
CRI's Return On Invested Capital of 6.89% is in line compared to the rest of the industry. CRI outperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRI is above the industry average of 11.73%.
The 3 year average ROIC (13.75%) for CRI is well above the current ROIC(6.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 10.06% | ||
| ROIC | 6.89% |
ROA(3y)9.05%
ROA(5y)8.18%
ROE(3y)26.4%
ROE(5y)25.22%
ROIC(3y)13.75%
ROIC(5y)13.22%
1.3 Margins
CRI has a Profit Margin (3.07%) which is in line with its industry peers.
CRI's Profit Margin has declined in the last couple of years.
The Operating Margin of CRI (6.09%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CRI has declined.
CRI has a Gross Margin of 46.79%. This is comparable to the rest of the industry: CRI outperforms 44.44% of its industry peers.
CRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 3.07% | ||
| GM | 46.79% |
OM growth 3Y-11.06%
OM growth 5Y-2.63%
PM growth 3Y-12.75%
PM growth 5Y-2.95%
GM growth 3Y0.38%
GM growth 5Y2.29%
2. Health
2.1 Basic Checks
CRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CRI has been reduced compared to 1 year ago.
The number of shares outstanding for CRI has been reduced compared to 5 years ago.
CRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 indicates that CRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CRI (2.62) is comparable to the rest of the industry.
CRI has a debt to FCF ratio of 5.42. This is a neutral value as CRI would need 5.42 years to pay back of all of its debts.
The Debt to FCF ratio of CRI (5.42) is comparable to the rest of the industry.
CRI has a Debt/Equity ratio of 0.58. This is a neutral value indicating CRI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, CRI is doing worse than 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.63
WACC10.96%
2.3 Liquidity
A Current Ratio of 2.26 indicates that CRI has no problem at all paying its short term obligations.
CRI's Current ratio of 2.26 is fine compared to the rest of the industry. CRI outperforms 64.44% of its industry peers.
A Quick Ratio of 0.95 indicates that CRI may have some problems paying its short term obligations.
The Quick ratio of CRI (0.95) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
CRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
CRI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.36% yearly.
Looking at the last year, CRI shows a very negative growth in Revenue. The Revenue has decreased by -19.15% in the last year.
CRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.17% yearly.
EPS 1Y (TTM)-33.33%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-55.95%
Revenue 1Y (TTM)-19.15%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%-0.08%
3.2 Future
CRI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -23.56% yearly.
The Revenue is expected to grow by 0.19% on average over the next years.
EPS Next Y-50.92%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
EPS Next 5YN/A
Revenue Next Year1.37%
Revenue Next 2Y0.75%
Revenue Next 3Y0.19%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CRI is valuated cheaply with a Price/Earnings ratio of 7.68.
Compared to the rest of the industry, the Price/Earnings ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 91.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, CRI is valued rather cheaply.
The Price/Forward Earnings ratio is 13.20, which indicates a correct valuation of CRI.
75.56% of the companies in the same industry are more expensive than CRI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.84. CRI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaper than 82.22% of the companies in the same industry.
84.44% of the companies in the same industry are more expensive than CRI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.67 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
The decent profitability rating of CRI may justify a higher PE ratio.
CRI's earnings are expected to decrease with -23.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
5. Dividend
5.1 Amount
CRI has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
CRI's Dividend Yield is rather good when compared to the industry average which is at 1.50. CRI pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of CRI is nicely growing with an annual growth rate of 16.75%!
CRI has paid a dividend for at least 10 years, which is a reliable track record.
CRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.75%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
87.45% of the earnings are spent on dividend by CRI. This is not a sustainable payout ratio.
The Dividend Rate of CRI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP87.45%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
31.96
-0.53 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners114.39%
Inst Owner Change-2.84%
Ins Owners2.87%
Ins Owner Change-0.27%
Market Cap1.16B
Revenue(TTM)2.83B
Net Income(TTM)87.00M
Analysts46.67
Price Target30.09 (-5.85%)
Short Float %12.37%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP87.45%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.64%
Min EPS beat(2)-56.97%
Max EPS beat(2)-0.32%
EPS beat(4)2
Avg EPS beat(4)-0.02%
Min EPS beat(4)-56.97%
Max EPS beat(4)33.81%
EPS beat(8)6
Avg EPS beat(8)13.85%
EPS beat(12)10
Avg EPS beat(12)20.28%
EPS beat(16)12
Avg EPS beat(16)15.61%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)2.56%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)2.56%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.69%
Revenue beat(16)7
Avg Revenue beat(16)0.1%
PT rev (1m)7.66%
PT rev (3m)19.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-6.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 13.2 | ||
| P/S | 0.41 | ||
| P/FCF | 12.67 | ||
| P/OCF | 7.71 | ||
| P/B | 1.35 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)4.16
EY13.02%
EPS(NY)2.42
Fwd EY7.58%
FCF(TTM)2.52
FCFY7.89%
OCF(TTM)4.15
OCFY12.98%
SpS77.71
BVpS23.72
TBVpS10.06
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 10.06% | ||
| ROCE | 8.76% | ||
| ROIC | 6.89% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 10.55% | ||
| OM | 6.09% | ||
| PM (TTM) | 3.07% | ||
| GM | 46.79% | ||
| FCFM | 3.25% |
ROA(3y)9.05%
ROA(5y)8.18%
ROE(3y)26.4%
ROE(5y)25.22%
ROIC(3y)13.75%
ROIC(5y)13.22%
ROICexc(3y)16.52%
ROICexc(5y)18.31%
ROICexgc(3y)24.79%
ROICexgc(5y)28.26%
ROCE(3y)17.48%
ROCE(5y)16.81%
ROICexgc growth 3Y-19.15%
ROICexgc growth 5Y0.36%
ROICexc growth 3Y-17.36%
ROICexc growth 5Y-0.7%
OM growth 3Y-11.06%
OM growth 5Y-2.63%
PM growth 3Y-12.75%
PM growth 5Y-2.95%
GM growth 3Y0.38%
GM growth 5Y2.29%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 107.95% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.51% | ||
| Profit Quality | 105.72% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.62 |
F-Score5
WACC10.96%
ROIC/WACC0.63
Cap/Depr(3y)84.08%
Cap/Depr(5y)65.4%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.49%
Profit Quality(3y)119.52%
Profit Quality(5y)187.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.33%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-55.95%
EPS Next Y-50.92%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.15%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%-0.08%
Revenue Next Year1.37%
Revenue Next 2Y0.75%
Revenue Next 3Y0.19%
Revenue Next 5YN/A
EBIT growth 1Y-52.45%
EBIT growth 3Y-16.9%
EBIT growth 5Y-6.69%
EBIT Next Year-18.79%
EBIT Next 3Y-6.27%
EBIT Next 5YN/A
FCF growth 1Y-79.82%
FCF growth 3Y1.66%
FCF growth 5Y-5.73%
OCF growth 1Y-70.46%
OCF growth 3Y3.65%
OCF growth 5Y-5.05%
CARTER'S INC / CRI FAQ
What is the ChartMill fundamental rating of CARTER'S INC (CRI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CRI.
Can you provide the valuation status for CARTER'S INC?
ChartMill assigns a valuation rating of 6 / 10 to CARTER'S INC (CRI). This can be considered as Fairly Valued.
What is the profitability of CRI stock?
CARTER'S INC (CRI) has a profitability rating of 6 / 10.
What is the financial health of CARTER'S INC (CRI) stock?
The financial health rating of CARTER'S INC (CRI) is 5 / 10.
Can you provide the expected EPS growth for CRI stock?
The Earnings per Share (EPS) of CARTER'S INC (CRI) is expected to decline by -50.92% in the next year.