CARTER'S INC (CRI) Stock Fundamental Analysis
NYSE:CRI - US1462291097 - Common Stock
26.29 USD
+0.97 (+3.83%)
26.3 USD
+0.01 (+0.04%)
CRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI has only an average score on both its financial health and profitability. CRI is cheap, but on the other hand it scores bad on growth. 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.
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 (5.41%) is better than 70.00% of its industry peers.
CRI has a Return On Equity of 15.55%. This is in the better half of the industry: CRI outperforms 74.00% of its industry peers.
CRI has a Return On Invested Capital of 8.98%. This is in the better half of the industry: CRI outperforms 62.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 10.63%.
The 3 year average ROIC (13.75%) for CRI is well above the current ROIC(8.98%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 15.55% | ||
| ROIC | 8.98% |
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 decent Profit Margin value of 4.69%, CRI is doing good in the industry, outperforming 68.00% 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 7.78%, CRI is in line with its industry, outperforming 58.00% of the companies in the same industry.
CRI's Operating Margin has declined in the last couple of years.
The Gross Margin of CRI (47.29%) 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 | 7.78% | ||
| PM (TTM) | 4.69% | ||
| GM | 47.29% |
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.
Compared to 1 year ago, CRI has less shares outstanding
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 2.62 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 2.62, CRI is in line with its industry, outperforming 48.00% of the companies in the same industry.
CRI has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as CRI would need 3.55 years to pay back of all of its debts.
CRI's Debt to FCF ratio of 3.55 is fine compared to the rest of the industry. CRI outperforms 68.00% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that CRI is somewhat dependend on debt financing.
CRI's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. CRI is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.98
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.20 indicates that CRI has no problem at all paying its short term obligations.
The Current ratio of CRI (2.20) is better than 64.00% of its industry peers.
CRI has a Quick Ratio of 1.03. 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 1.03, CRI is in line with its industry, outperforming 46.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for CRI have decreased strongly by -20.31% in the last year.
The Earnings Per Share has been decreasing by -1.36% on average over the past years.
Looking at the last year, CRI shows a very negative growth in Revenue. The Revenue has decreased by -19.89% in the last year.
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)-20.31%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-77.63%
Revenue 1Y (TTM)-19.89%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%3.7%
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 -25.63% yearly.
CRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.45% yearly.
EPS Next Y-47.73%
EPS Next 2Y-37.89%
EPS Next 3Y-25.63%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y-0.09%
Revenue Next 3Y-0.45%
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 5.15, 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 98.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, CRI is valued rather cheaply.
A Price/Forward Earnings ratio of 11.23 indicates a reasonable valuation of CRI.
Based on the Price/Forward Earnings ratio, CRI is valued a bit cheaper than 80.00% of the companies in the same industry.
CRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.82 | ||
| EV/EBITDA | 4.05 |
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 -25.63% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.89%
EPS Next 3Y-25.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.47%, CRI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.65, CRI pays a better dividend. On top of this CRI pays more dividend than 98.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, CRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.47% |
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
72.12% of the earnings are spent on dividend by CRI. 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.
DP72.12%
EPS Next 2Y-37.89%
EPS Next 3Y-25.63%
26.29
+0.97 (+3.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners122.72%
Inst Owner Change1.03%
Ins Owners2.6%
Ins Owner Change17.49%
Market Cap957.74M
Analysts46.15
Price Target25.09 (-4.56%)
Short Float %13.86%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.47% |
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP72.12%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.79%
Min EPS beat(2)-56.97%
Max EPS beat(2)23.39%
EPS beat(4)3
Avg EPS beat(4)4.81%
Min EPS beat(4)-56.97%
Max EPS beat(4)33.81%
EPS beat(8)7
Avg EPS beat(8)16.16%
EPS beat(12)10
Avg EPS beat(12)20.07%
EPS beat(16)13
Avg EPS beat(16)16.28%
Revenue beat(2)1
Avg Revenue beat(2)1.26%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)2.56%
Revenue beat(4)2
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)2.56%
Revenue beat(8)3
Avg Revenue beat(8)0.21%
Revenue beat(12)5
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)-16.89%
PT rev (3m)-15.17%
EPS NQ rev (1m)-6.96%
EPS NQ rev (3m)-36.99%
EPS NY rev (1m)-7%
EPS NY rev (3m)-4.81%
Revenue NQ rev (1m)1.7%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 11.23 | ||
| P/S | 0.34 | ||
| P/FCF | 6.82 | ||
| P/OCF | 4.82 | ||
| P/B | 1.12 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 4.05 |
EPS(TTM)5.1
EY19.4%
EPS(NY)2.34
Fwd EY8.91%
FCF(TTM)3.85
FCFY14.66%
OCF(TTM)5.46
OCFY20.75%
SpS77.77
BVpS23.44
TBVpS9.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 15.55% | ||
| ROCE | 11.42% | ||
| ROIC | 8.98% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 15.87% | ||
| OM | 7.78% | ||
| PM (TTM) | 4.69% | ||
| GM | 47.29% | ||
| FCFM | 4.95% |
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-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 105.23% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.04% | ||
| Profit Quality | 105.68% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.62 |
F-Score6
WACC9.12%
ROIC/WACC0.98
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)-20.31%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-77.63%
EPS Next Y-47.73%
EPS Next 2Y-37.89%
EPS Next 3Y-25.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.89%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%3.7%
Revenue Next Year0.6%
Revenue Next 2Y-0.09%
Revenue Next 3Y-0.45%
Revenue Next 5YN/A
EBIT growth 1Y-41.85%
EBIT growth 3Y-16.9%
EBIT growth 5Y-6.69%
EBIT Next Year-14.39%
EBIT Next 3Y-8.04%
EBIT Next 5YN/A
FCF growth 1Y-58.81%
FCF growth 3Y1.66%
FCF growth 5Y-5.73%
OCF growth 1Y-49.2%
OCF growth 3Y3.65%
OCF growth 5Y-5.05%