CARTER'S INC (CRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRI - US1462291097 - Common Stock
31.75 USD
+0.64 (+2.06%)
31.75 USD
0 (0%)
Overall CRI gets a fundamental rating of 4 out of 10. We evaluated CRI against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI has only an average score on both its financial health and profitability. CRI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CRI had positive earnings in the past year.
CRI had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.52%, CRI perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
With a decent Return On Equity value of 10.06%, CRI is doing good in the industry, outperforming 62.22% 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 in line with the industry average of 11.82%.
The last Return On Invested Capital (6.89%) for CRI is well below the 3 year average (13.75%), which needs to be investigated, but indicates that CRI had better years and this may not be a problem.
| 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
The Profit Margin of CRI (3.07%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CRI has declined.
CRI has a Operating Margin of 6.09%. This is comparable to the rest of the industry: CRI outperforms 53.33% of its industry peers.
In the last couple of years the Operating Margin of CRI has declined.
CRI has a Gross Margin (46.79%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CRI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRI is still creating some value.
CRI has less shares outstanding than it did 1 year ago.
CRI has less shares outstanding than it did 5 years ago.
CRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.60 indicates that CRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CRI (2.60) is comparable to the rest of the industry.
The Debt to FCF ratio of CRI is 5.42, which is a neutral value as it means it would take CRI, 5.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.42, CRI is in line with its industry, outperforming 53.33% of the companies in the same 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 | 2.6 |
ROIC/WACC0.63
WACC11.01%
2.3 Liquidity
CRI has a Current Ratio of 2.26. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
CRI has a Current ratio of 2.26. This is in the better half 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.
CRI has a Quick ratio (0.95) which 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
The earnings per share for CRI have decreased strongly by -33.33% in the last year.
Measured over the past years, CRI shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.36% on average per year.
CRI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.15%.
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.
Based on estimates for the next years, CRI will show a small growth in Revenue. The Revenue will grow by 0.19% on average per year.
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
With a Price/Earnings ratio of 7.63, the valuation of CRI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, CRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.11, the valuation of CRI can be described as correct.
CRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRI is cheaper than 71.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRI to the average of the S&P500 Index (23.52), we can say CRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
CRI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRI is 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 | 12.58 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
A cheap valuation may be justified as CRI's earnings are expected to decrease with -23.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.21%, CRI has a reasonable but not impressive dividend return.
CRI's Dividend Yield is rather good when compared to the industry average which is at 3.22. CRI pays more dividend than 88.89% of the companies in the same industry.
CRI's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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.
CRI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP87.45%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
31.75
+0.64 (+2.06%)
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 (-5.23%)
Short Float %11.2%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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)-0.76%
EPS NQ rev (3m)-11.78%
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)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.41 | ||
| P/FCF | 12.58 | ||
| P/OCF | 7.66 | ||
| P/B | 1.34 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)4.16
EY13.1%
EPS(NY)2.42
Fwd EY7.63%
FCF(TTM)2.52
FCFY7.95%
OCF(TTM)4.15
OCFY13.06%
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 | 2.6 |
F-Score5
WACC11.01%
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 4 / 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 5 / 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.