CARTER'S INC (CRI) Stock Fundamental Analysis
USA - NYSE:CRI - US1462291097 - Common Stock
30.54 USD
-1.93 (-5.94%)
30.54 USD
0 (0%)
CRI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI has an average financial health and profitability rating. CRI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CRI was profitable.
CRI had a positive operating cash flow in the past year.
In the past 5 years CRI has always been profitable.
In the past 5 years CRI always reported a positive cash flow from operatings.
1.2 Ratios
CRI has a Return On Assets of 3.52%. This is comparable to the rest of the industry: CRI outperforms 58.33% of its industry peers.
With a decent Return On Equity value of 10.06%, CRI is doing good in the industry, outperforming 60.42% of the companies in the same industry.
CRI has a Return On Invested Capital (6.89%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CRI is in line with the industry average of 12.21%.
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
With a Profit Margin value of 3.07%, CRI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
CRI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.09%, CRI is in line with its industry, outperforming 52.08% of the companies in the same industry.
CRI's Operating Margin has declined in the last couple of years.
CRI's Gross Margin of 46.79% is in line compared to the rest of the industry. CRI outperforms 45.83% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRI is still creating some value.
Compared to 1 year ago, CRI has less shares outstanding
CRI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CRI has been reduced compared to a year ago.
2.2 Solvency
CRI has an Altman-Z score of 2.62. This is not the best score and indicates that CRI is in the grey zone with still 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.
With a Debt to FCF ratio value of 5.42, CRI perfoms like the industry average, outperforming 56.25% 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.
With a Debt to Equity ratio value of 0.58, CRI is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.69
WACC10.04%
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 66.67% of its industry peers.
CRI has a Quick Ratio of 2.26. This is a bad value and indicates that CRI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, CRI is in line with its industry, outperforming 52.08% of the companies in the same 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%.
Measured over the past years, CRI shows a decrease in Revenue. The Revenue has been decreasing by -4.17% on average per year.
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
Based on estimates for the next years, CRI will show a very negative growth in Earnings Per Share. The EPS will decrease by -24.43% on average per year.
CRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.11% yearly.
EPS Next Y-50.74%
EPS Next 2Y-37.07%
EPS Next 3Y-24.43%
EPS Next 5YN/A
Revenue Next Year1.37%
Revenue Next 2Y0.56%
Revenue Next 3Y-0.11%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CRI is valuated cheaply with a Price/Earnings ratio of 7.34.
Compared to the rest of the industry, the Price/Earnings ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 87.50% of the companies listed in the same industry.
CRI is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
CRI is valuated correctly with a Price/Forward Earnings ratio of 12.71.
CRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRI is cheaper than 64.58% of the companies in the same industry.
CRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRI is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
A cheap valuation may be justified as CRI's earnings are expected to decrease with -24.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.07%
EPS Next 3Y-24.43%
5. Dividend
5.1 Amount
CRI has a Yearly Dividend Yield of 3.02%.
Compared to an average industry Dividend Yield of 3.33, CRI pays a better dividend. On top of this CRI pays more dividend than 89.58% of the companies listed in the same industry.
CRI's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of CRI is nicely growing with an annual growth rate of 16.75%!
CRI has been paying a dividend for at least 10 years, so it has 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
CRI pays out 87.45% of its income as dividend. 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-37.07%
EPS Next 3Y-24.43%
30.54
-1.93 (-5.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners127.52%
Inst Owner Change-2.92%
Ins Owners2.87%
Ins Owner Change-0.34%
Market Cap1.11B
Revenue(TTM)2.83B
Net Income(TTM)87.00M
Analysts46.15
Price Target27.95 (-8.48%)
Short Float %10.15%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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)11.38%
PT rev (3m)11.38%
EPS NQ rev (1m)-10.74%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)-4.85%
EPS NY rev (3m)-12.36%
Revenue NQ rev (1m)3.23%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 12.71 | ||
| P/S | 0.39 | ||
| P/FCF | 12.1 | ||
| P/OCF | 7.36 | ||
| P/B | 1.29 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)4.16
EY13.62%
EPS(NY)2.4
Fwd EY7.87%
FCF(TTM)2.52
FCFY8.27%
OCF(TTM)4.15
OCFY13.59%
SpS77.76
BVpS23.73
TBVpS10.06
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.13
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
WACC10.04%
ROIC/WACC0.69
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-50.74%
EPS Next 2Y-37.07%
EPS Next 3Y-24.43%
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 2Y0.56%
Revenue Next 3Y-0.11%
Revenue Next 5YN/A
EBIT growth 1Y-52.45%
EBIT growth 3Y-16.9%
EBIT growth 5Y-6.69%
EBIT Next Year-14.49%
EBIT Next 3Y-8.49%
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 -50.74% in the next year.