CARTER'S INC (CRI) Stock Fundamental Analysis
NYSE:CRI - New York Stock Exchange, Inc. - US1462291097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CRI. CRI was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CRI has a bad growth rate and is valued cheaply. CRI also has an excellent dividend rating. This makes CRI very considerable for value and dividend 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.
CRI had positive earnings in each of the past 5 years.
Each year in the past 5 years CRI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CRI (8.45%) is better than 77.08% of its industry peers.
CRI has a Return On Equity of 23.26%. This is amongst the best in the industry. CRI outperforms 81.25% of its industry peers.
With a decent Return On Invested Capital value of 12.72%, CRI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 11.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 23.26% | ||
| ROIC | 12.72% |
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 (5.67%) is better than 62.50% of its industry peers.
CRI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.95%, CRI perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Operating Margin of CRI has declined.
Looking at the Gross Margin, with a value of 47.68%, CRI is in line with its industry, outperforming 41.67% 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 | 8.95% | ||
| PM (TTM) | 5.67% | ||
| GM | 47.68% |
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.
CRI has less 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 an improved debt to assets ratio.
2.2 Solvency
CRI has an Altman-Z score of 3.25. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRI (3.25) is better than 62.50% of its industry peers.
The Debt to FCF ratio of CRI is 2.25, which is a good value as it means it would take CRI, 2.25 years of fcf income to pay off all of its debts.
CRI has a Debt to FCF ratio of 2.25. This is in the better half of the industry: CRI outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that CRI is somewhat dependend on debt financing.
CRI has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: CRI underperforms 66.67% 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 | 2.25 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.51
WACC8.41%
2.3 Liquidity
CRI has a Current Ratio of 2.56. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
CRI's Current ratio of 2.56 is fine compared to the rest of the industry. CRI outperforms 62.50% of its industry peers.
CRI has a Quick Ratio of 1.40. This is a normal value and indicates that CRI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.40, CRI is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for CRI have decreased by -9.39% 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.
Looking at the last year, CRI shows a decrease in Revenue. The Revenue has decreased by -3.69% in the last year.
The Revenue has been decreasing by -4.17% on average over the past years.
EPS 1Y (TTM)-9.39%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-36.54%
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%-4.79%
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 -24.84% on average per year.
Based on estimates for the next years, CRI will show a decrease in Revenue. The Revenue will decrease by -0.73% on average per year.
EPS Next Y-45.09%
EPS Next 2Y-35.19%
EPS Next 3Y-24.84%
EPS Next 5YN/A
Revenue Next Year-1.23%
Revenue Next 2Y-1.02%
Revenue Next 3Y-0.73%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 5.55, the valuation of CRI can be described as very cheap.
93.75% 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 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.38 indicates a correct valuation of CRI.
Based on the Price/Forward Earnings ratio, CRI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.41. CRI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.55 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than CRI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CRI is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The decent profitability rating of CRI may justify a higher PE ratio.
A cheap valuation may be justified as CRI's earnings are expected to decrease with -24.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-35.19%
EPS Next 3Y-24.84%
5. Dividend
5.1 Amount
CRI has a Yearly Dividend Yield of 8.30%, which is a nice return.
The stock price of CRI dropped by -22.79% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CRI's Dividend Yield is rather good when compared to the industry average which is at 3.81. CRI pays more dividend than 95.83% of the companies in the same industry.
CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.3% |
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
CRI pays out 58.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of CRI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP58.78%
EPS Next 2Y-35.19%
EPS Next 3Y-24.84%
31.57
+0.43 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners116.39%
Inst Owner Change-3.13%
Ins Owners2.6%
Ins Owner Change18.56%
Market Cap1.15B
Analysts47.14
Price Target30.19 (-4.37%)
Short Float %15.11%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.3% |
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP58.78%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.6%
Min EPS beat(2)23.39%
Max EPS beat(2)33.81%
EPS beat(4)4
Avg EPS beat(4)32.42%
Min EPS beat(4)19.02%
Max EPS beat(4)53.46%
EPS beat(8)8
Avg EPS beat(8)25.48%
EPS beat(12)10
Avg EPS beat(12)23.14%
EPS beat(16)14
Avg EPS beat(16)25.97%
Revenue beat(2)1
Avg Revenue beat(2)0.79%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)1.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)1.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.3%
Revenue beat(12)4
Avg Revenue beat(12)-0.3%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)2.07%
PT rev (3m)-37.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.14%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.55 | ||
| Fwd PE | 12.38 | ||
| P/S | 0.33 | ||
| P/FCF | 5.2 | ||
| P/OCF | 4.17 | ||
| P/B | 1.36 | ||
| P/tB | 3.3 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)5.69
EY18.02%
EPS(NY)2.55
Fwd EY8.07%
FCF(TTM)6.07
FCFY19.23%
OCF(TTM)7.57
OCFY23.96%
SpS95.33
BVpS23.25
TBVpS9.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 23.26% | ||
| ROCE | 16.17% | ||
| ROIC | 12.72% | ||
| ROICexc | 15.26% | ||
| ROICexgc | 22.16% | ||
| OM | 8.95% | ||
| PM (TTM) | 5.67% | ||
| GM | 47.68% | ||
| FCFM | 6.37% |
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%
ROICexcg growth 3Y-19.15%
ROICexcg 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-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.25 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 96.71% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.08% | ||
| Profit Quality | 112.24% | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 3.25 |
F-Score7
WACC8.41%
ROIC/WACC1.51
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)-9.39%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-36.54%
EPS Next Y-45.09%
EPS Next 2Y-35.19%
EPS Next 3Y-24.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%-4.79%
Revenue Next Year-1.23%
Revenue Next 2Y-1.02%
Revenue Next 3Y-0.73%
Revenue Next 5YN/A
EBIT growth 1Y-17.87%
EBIT growth 3Y-16.9%
EBIT growth 5Y-6.69%
EBIT Next Year-8.9%
EBIT Next 3Y-8.38%
EBIT Next 5YN/A
FCF growth 1Y-10.76%
FCF growth 3Y1.66%
FCF growth 5Y-5.73%
OCF growth 1Y-6.35%
OCF growth 3Y3.65%
OCF growth 5Y-5.05%