CARTER'S INC (CRI) Stock Fundamental Analysis
USA - NYSE:CRI - US1462291097 - Common Stock
31.13 USD
+0.28 (+0.91%)
31.22 USD
+0.09 (+0.29%)
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 has an average financial health and profitability rating. CRI has a bad growth rate and is valued cheaply. These ratings could make CRI a good candidate for value investing.
1. Profitability
1.1 Basic Checks
CRI had positive earnings in the past year.
CRI had a positive operating cash flow in the past year.
In the past 5 years CRI has always been profitable.
CRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CRI (5.41%) is better than 72.92% of its industry peers.
The Return On Equity of CRI (15.55%) is better than 68.75% of its industry peers.
CRI has a better Return On Invested Capital (8.98%) than 60.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is in line with the industry average of 12.15%.
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 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CRI has declined.
CRI has a Operating Margin of 7.78%. This is in the better half of the industry: CRI outperforms 60.42% of its industry peers.
CRI's Operating Margin has declined in the last couple of years.
CRI's Gross Margin of 47.29% is in line compared to the rest of the industry. CRI outperforms 45.83% of its industry peers.
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
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
An Altman-Z score of 2.68 indicates that CRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRI's Altman-Z score of 2.68 is in line compared to the rest of the industry. CRI outperforms 43.75% of its industry peers.
The Debt to FCF ratio of CRI is 3.55, which is a good value as it means it would take CRI, 3.55 years of fcf income to pay off all of its debts.
CRI's Debt to FCF ratio of 3.55 is fine compared to the rest of the industry. CRI outperforms 64.58% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that 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 | 3.55 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.86
WACC10.41%
2.3 Liquidity
CRI has a Current Ratio of 2.20. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
CRI has a Current ratio of 2.20. This is in the better half of the industry: CRI outperforms 64.58% 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.
With a Quick ratio value of 1.03, CRI perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
CRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.31%.
The Earnings Per Share has been decreasing by -1.36% on average over the past years.
The Revenue for CRI has decreased by -19.89% in the past year. This is quite bad
The Revenue has been decreasing by -4.17% on average over the past years.
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
Based on estimates for the next years, CRI will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.34% on average per year.
Based on estimates for the next years, CRI will show a decrease in Revenue. The Revenue will decrease by -0.43% on average per year.
EPS Next Y-48.23%
EPS Next 2Y-38.22%
EPS Next 3Y-26.34%
EPS Next 5YN/A
Revenue Next Year0.63%
Revenue Next 2Y-0.07%
Revenue Next 3Y-0.43%
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
With a Price/Earnings ratio of 6.10, the valuation of CRI can be described as very cheap.
95.83% of the companies in the same industry are more expensive than CRI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.57. CRI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.44, which indicates a correct valuation of CRI.
Based on the Price/Forward Earnings ratio, CRI is valued a bit cheaper than 70.83% of the companies in the same industry.
CRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 93.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
The decent profitability rating of CRI may justify a higher PE ratio.
CRI's earnings are expected to decrease with -26.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.22%
EPS Next 3Y-26.34%
5. Dividend
5.1 Amount
CRI has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
CRI's Dividend Yield is rather good when compared to the industry average which is at 3.30. CRI pays more dividend than 89.58% of the companies in the same industry.
CRI's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of CRI grows each year by 16.75%, which is quite nice.
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 72.12% of its income as dividend. This is not a sustainable payout ratio.
CRI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP72.12%
EPS Next 2Y-38.22%
EPS Next 3Y-26.34%
31.13
+0.28 (+0.91%)
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-0.61%
Ins Owners2.87%
Ins Owner Change1.75%
Market Cap1.13B
Revenue(TTM)2.83B
Net Income(TTM)132.82M
Analysts46.15
Price Target25.09 (-19.4%)
Short Float %11.29%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0%
PT rev (3m)-16.89%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-7.89%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 13.44 | ||
| P/S | 0.4 | ||
| P/FCF | 8.08 | ||
| P/OCF | 5.71 | ||
| P/B | 1.33 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)5.1
EY16.38%
EPS(NY)2.32
Fwd EY7.44%
FCF(TTM)3.85
FCFY12.38%
OCF(TTM)5.46
OCFY17.53%
SpS77.77
BVpS23.44
TBVpS9.72
PEG (NY)N/A
PEG (5Y)N/A
Graham Number51.86
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%
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-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 | 2.68 |
F-Score6
WACC10.41%
ROIC/WACC0.86
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-48.23%
EPS Next 2Y-38.22%
EPS Next 3Y-26.34%
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 Year0.63%
Revenue Next 2Y-0.07%
Revenue Next 3Y-0.43%
Revenue Next 5YN/A
EBIT growth 1Y-41.85%
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-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%