CARTER'S INC (CRI)
US1462291097 - Common Stock
We assign a fundamental rating of 6 out of 10 to CRI. CRI was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRI has a bad growth rate and is valued cheaply. Finally CRI also has an excellent dividend rating. This makes CRI very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year CRI was profitable.
In the past year CRI had a positive cash flow from operations.
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
With an excellent Return On Assets value of 11.08%, CRI belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
With an excellent Return On Equity value of 31.19%, CRI belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
CRI has a better Return On Invested Capital (15.85%) than 86.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 10.01%.
The 3 year average ROIC (14.99%) for CRI is below the current ROIC(15.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.19% | ||
| ROIC | 15.85% |
ROA(3y)10.07%
ROA(5y)8.58%
ROE(3y)31.08%
ROE(5y)26.9%
ROIC(3y)14.99%
ROIC(5y)13.55%
1.3 Margins
CRI's Profit Margin of 7.24% is amongst the best of the industry. CRI outperforms 82.00% of its industry peers.
In the last couple of years the Profit Margin of CRI has remained more or less at the same level.
CRI's Operating Margin of 10.43% is fine compared to the rest of the industry. CRI outperforms 76.00% of its industry peers.
CRI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.83%, CRI is in line with its industry, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 46.83% |
OM growth 3Y3.44%
OM growth 5Y-0.58%
PM growth 3Y29.22%
PM growth 5Y-0.85%
GM growth 3Y2.57%
GM growth 5Y1.84%
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
The number of shares outstanding for CRI has been reduced compared to 5 years ago.
The debt/assets ratio for CRI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.88 indicates that CRI is not in any danger for bankruptcy at the moment.
CRI's Altman-Z score of 3.88 is fine compared to the rest of the industry. CRI outperforms 70.00% of its industry peers.
The Debt to FCF ratio of CRI is 1.06, which is an excellent value as it means it would take CRI, only 1.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.06, CRI is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that CRI is somewhat dependend on debt financing.
CRI has a worse Debt to Equity ratio (0.59) than 64.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for CRI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.7
WACC9.3%
2.3 Liquidity
CRI has a Current Ratio of 2.15. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CRI (2.15) is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that CRI should not have too much problems paying its short term obligations.
The Quick ratio of CRI (1.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.12%.
CRI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.
The Revenue has grown by 13.35% in the past year. This is quite good.
CRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.18% yearly.
EPS 1Y (TTM)-10.12%
EPS 3Y14.44%
EPS 5Y-0.35%
EPS growth Q2Q20.52%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-0.88%
Revenue growth 5Y-3.18%
Revenue growth Q2Q-5.95%
3.2 Future
CRI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y3.16%
EPS Next 2Y4.03%
EPS Next 3Y6.07%
EPS Next 5YN/A
Revenue Next Year0.27%
Revenue Next 2Y1.15%
Revenue Next 3Y1.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 11.47, the valuation of CRI can be described as very reasonable.
78.00% of the companies in the same industry are more expensive than CRI, based on the Price/Earnings ratio.
CRI is valuated cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
CRI is valuated reasonably with a Price/Forward Earnings ratio of 11.11.
Based on the Price/Forward Earnings ratio, CRI is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CRI to the average of the S&P500 Index (21.32), we can say CRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
86.00% of the companies in the same industry are more expensive than CRI, based on the Enterprise Value to EBITDA ratio.
82.00% 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 | 5.54 | ||
| EV/EBITDA | 6.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CRI may justify a higher PE ratio.
PEG (NY)3.62
PEG (5Y)N/A
EPS Next 2Y4.03%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.29%, CRI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.91, CRI pays a better dividend. On top of this CRI pays more dividend than 94.00% of the companies listed in the same industry.
CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
5.2 History
The dividend of CRI is nicely growing with an annual growth rate of 27.93%!
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)27.93%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
42.49% of the earnings are spent on dividend by CRI. This is a bit on the high side, but may be sustainable.
CRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.49%
EPS Next 2Y4.03%
EPS Next 3Y6.07%
CARTER'S INC
NYSE:CRI (4/17/2024, 7:04:00 PM)
After market: 71.32 0 (0%)71.32
-0.68 (-0.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 46.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-10.12%
EPS 3Y14.44%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-0.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y