CARTER'S INC (CRI) Fundamental Analysis & Valuation

NYSE:CRI • US1462291097

Current stock price

34.61 USD
+0.14 (+0.41%)
Last:

This CRI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CRI Profitability Analysis

1.1 Basic Checks

  • In the past year CRI was profitable.
  • In the past year CRI had a positive cash flow from operations.
  • Each year in the past 5 years CRI has been profitable.
  • In the past 5 years CRI always reported a positive cash flow from operatings.
CRI Yearly Net Income VS EBIT VS OCF VS FCFCRI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • CRI's Return On Assets of 3.50% is in line compared to the rest of the industry. CRI outperforms 60.00% of its industry peers.
  • CRI has a better Return On Equity (9.71%) than 62.22% of its industry peers.
  • The Return On Invested Capital of CRI (5.63%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for CRI is in line with the industry average of 11.67%.
  • The 3 year average ROIC (10.50%) for CRI is well above the current ROIC(5.63%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 3.5%
ROE 9.71%
ROIC 5.63%
ROA(3y)6.85%
ROA(5y)8.24%
ROE(3y)19.32%
ROE(5y)24.84%
ROIC(3y)10.5%
ROIC(5y)12.8%
CRI Yearly ROA, ROE, ROICCRI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • CRI has a Profit Margin of 3.10%. This is comparable to the rest of the industry: CRI outperforms 53.33% of its industry peers.
  • In the last couple of years the Profit Margin of CRI has declined.
  • CRI has a Operating Margin (4.97%) which is in line with its industry peers.
  • CRI's Operating Margin has declined in the last couple of years.
  • CRI has a worse Gross Margin (45.36%) than 60.00% of its industry peers.
  • CRI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.97%
PM (TTM) 3.1%
GM 45.36%
OM growth 3Y-25.65%
OM growth 5Y-12.92%
PM growth 3Y-26.15%
PM growth 5Y-2.98%
GM growth 3Y-0.35%
GM growth 5Y0.65%
CRI Yearly Profit, Operating, Gross MarginsCRI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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4

2. CRI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRI is destroying value.
  • CRI has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CRI has less shares outstanding
  • Compared to 1 year ago, CRI has a worse debt to assets ratio.
CRI Yearly Shares OutstandingCRI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
CRI Yearly Total Debt VS Total AssetsCRI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.64 indicates that CRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.64, CRI is in line with its industry, outperforming 48.89% of the companies in the same industry.
  • The Debt to FCF ratio of CRI is 8.26, which is on the high side as it means it would take CRI, 8.26 years of fcf income to pay off all of its debts.
  • CRI has a Debt to FCF ratio (8.26) which is comparable to the rest of the industry.
  • CRI has a Debt/Equity ratio of 0.61. This is a neutral value indicating CRI is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.61, CRI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 8.26
Altman-Z 2.64
ROIC/WACC0.52
WACC10.74%
CRI Yearly LT Debt VS Equity VS FCFCRI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • CRI has a Current Ratio of 2.51. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.51, CRI is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
  • A Quick Ratio of 1.44 indicates that CRI should not have too much problems paying its short term obligations.
  • CRI has a better Quick ratio (1.44) than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 1.44
CRI Yearly Current Assets VS Current LiabilitesCRI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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3

3. CRI Growth Analysis

3.1 Past

  • CRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.83%.
  • Measured over the past years, CRI shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.52% on average per year.
  • The Revenue for CRI has decreased by -17.32% in the past year. This is quite bad
  • The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-42.83%
EPS 3Y-20.55%
EPS 5Y-3.52%
EPS Q2Q%-26.64%
Revenue 1Y (TTM)-17.32%
Revenue growth 3Y-3.37%
Revenue growth 5Y-0.85%
Sales Q2Q%7.65%

3.2 Future

  • CRI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.01% yearly.
  • The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-10.55%
EPS Next 2Y1.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.59%
Revenue Next 2Y2.25%
Revenue Next 3Y1.65%
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.
  • 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.
CRI Yearly Revenue VS EstimatesCRI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
CRI Yearly EPS VS EstimatesCRI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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6

4. CRI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.97 indicates a reasonable valuation of CRI.
  • Based on the Price/Earnings ratio, CRI is valued cheaper than 88.89% of the companies in the same industry.
  • CRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.54.
  • With a Price/Forward Earnings ratio of 11.15, the valuation of CRI can be described as very reasonable.
  • CRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRI is cheaper than 84.44% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.70. CRI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.97
Fwd PE 11.15
CRI Price Earnings VS Forward Price EarningsCRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • CRI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRI is cheaper than 80.00% of the companies in the same industry.
  • CRI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRI is cheaper than 64.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.35
EV/EBITDA 6.7
CRI Per share dataCRI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.01%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. CRI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.85%, 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 1.50. CRI pays more dividend than 82.22% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, CRI pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.85%

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
CRI Yearly Dividends per shareCRI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • CRI pays out 62.77% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of CRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.77%
EPS Next 2Y1.01%
EPS Next 3YN/A
CRI Yearly Income VS Free CF VS DividendCRI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
CRI Dividend Payout.CRI Dividend Payout, showing the Payout Ratio.CRI Dividend Payout.PayoutRetained Earnings

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CRI Fundamentals: All Metrics, Ratios and Statistics

CARTER'S INC

NYSE:CRI (3/24/2026, 3:24:07 PM)

34.61

+0.14 (+0.41%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)02-27
Earnings (Next)04-23
Inst Owners115.64%
Inst Owner Change1.79%
Ins Owners2.8%
Ins Owner Change13.26%
Market Cap1.26B
Revenue(TTM)2.90B
Net Income(TTM)89.79M
Analysts49.23
Price Target35.5 (2.57%)
Short Float %9.86%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 2.85%
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP62.77%
Div Incr Years1
Div Non Decr Years4
Ex-Date03-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-0.32%
Max EPS beat(2)7.93%
EPS beat(4)2
Avg EPS beat(4)-6.49%
Min EPS beat(4)-56.97%
Max EPS beat(4)23.39%
EPS beat(8)6
Avg EPS beat(8)14.24%
EPS beat(12)10
Avg EPS beat(12)18.23%
EPS beat(16)12
Avg EPS beat(16)15.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)-0.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)2.56%
Revenue beat(8)3
Avg Revenue beat(8)0.12%
Revenue beat(12)4
Avg Revenue beat(12)0.26%
Revenue beat(16)6
Avg Revenue beat(16)-0.08%
PT rev (1m)4.19%
PT rev (3m)17.97%
EPS NQ rev (1m)-58.33%
EPS NQ rev (3m)-64.12%
EPS NY rev (1m)10.52%
EPS NY rev (3m)28.18%
Revenue NQ rev (1m)1.88%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)3.7%
Revenue NY rev (3m)4.7%
Valuation
Industry RankSector Rank
PE 9.97
Fwd PE 11.15
P/S 0.43
P/FCF 18.35
P/OCF 10.3
P/B 1.36
P/tB 2.95
EV/EBITDA 6.7
EPS(TTM)3.47
EY10.03%
EPS(NY)3.1
Fwd EY8.97%
FCF(TTM)1.89
FCFY5.45%
OCF(TTM)3.36
OCFY9.71%
SpS79.65
BVpS25.42
TBVpS11.74
PEG (NY)N/A
PEG (5Y)N/A
Graham Number44.55
Profitability
Industry RankSector Rank
ROA 3.5%
ROE 9.71%
ROCE 6.99%
ROIC 5.63%
ROICexc 7.37%
ROICexgc 10.78%
OM 4.97%
PM (TTM) 3.1%
GM 45.36%
FCFM 2.37%
ROA(3y)6.85%
ROA(5y)8.24%
ROE(3y)19.32%
ROE(5y)24.84%
ROIC(3y)10.5%
ROIC(5y)12.8%
ROICexc(3y)13.27%
ROICexc(5y)17.02%
ROICexgc(3y)20.07%
ROICexgc(5y)25.99%
ROCE(3y)13.04%
ROCE(5y)15.9%
ROICexgc growth 3Y-25.78%
ROICexgc growth 5Y-15.59%
ROICexc growth 3Y-25.93%
ROICexc growth 5Y-14.26%
OM growth 3Y-25.65%
OM growth 5Y-12.92%
PM growth 3Y-26.15%
PM growth 5Y-2.98%
GM growth 3Y-0.35%
GM growth 5Y0.65%
F-Score4
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 8.26
Debt/EBITDA 2.85
Cap/Depr 97.18%
Cap/Sales 1.85%
Interest Coverage 4.08
Cash Conversion 61.41%
Profit Quality 76.44%
Current Ratio 2.51
Quick Ratio 1.44
Altman-Z 2.64
F-Score4
WACC10.74%
ROIC/WACC0.52
Cap/Depr(3y)95.82%
Cap/Depr(5y)77.84%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.64%
Profit Quality(3y)138.58%
Profit Quality(5y)100.81%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.83%
EPS 3Y-20.55%
EPS 5Y-3.52%
EPS Q2Q%-26.64%
EPS Next Y-10.55%
EPS Next 2Y1.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.32%
Revenue growth 3Y-3.37%
Revenue growth 5Y-0.85%
Sales Q2Q%7.65%
Revenue Next Year3.59%
Revenue Next 2Y2.25%
Revenue Next 3Y1.65%
Revenue Next 5YN/A
EBIT growth 1Y-57.64%
EBIT growth 3Y-28.15%
EBIT growth 5Y-13.66%
EBIT Next Year37.88%
EBIT Next 3Y25.01%
EBIT Next 5YN/A
FCF growth 1Y-71.71%
FCF growth 3Y12.66%
FCF growth 5Y-34.18%
OCF growth 1Y-59.06%
OCF growth 3Y11.44%
OCF growth 5Y-26.96%

CARTER'S INC / CRI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CARTER'S INC (CRI) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CRI.


What is the valuation status of CARTER'S INC (CRI) stock?

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.


Can you provide the PE and PB ratios for CRI stock?

The Price/Earnings (PE) ratio for CARTER'S INC (CRI) is 9.97 and the Price/Book (PB) ratio is 1.36.


How financially healthy is CARTER'S INC?

The financial health rating of CARTER'S INC (CRI) is 4 / 10.