CARTER'S INC (CRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRI - US1462291097 - Common Stock
32.45 USD
-0.61 (-1.85%)
32.45 USD
0 (0%)
Taking everything into account, CRI scores 4 out of 10 in our fundamental rating. CRI was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI has only an average score on both its financial health and profitability. CRI is valued correctly, but it does not seem to be growing.
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.
In the past 5 years CRI always reported a positive cash flow from operatings.
1.2 Ratios
CRI has a Return On Assets (3.52%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.06%, CRI is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
CRI has a Return On Invested Capital of 6.89%. This is comparable to the rest of the industry: CRI outperforms 60.00% of its industry peers.
CRI had an Average Return On Invested Capital over the past 3 years of 13.75%. This is in line with the industry average of 11.77%.
The 3 year average ROIC (13.75%) for CRI is well above the current ROIC(6.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 10.06% | ||
| ROIC | 6.89% |
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
CRI has a Profit Margin (3.07%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CRI has declined.
CRI's Operating Margin of 6.09% is in line compared to the rest of the industry. CRI outperforms 53.33% of its industry peers.
In the last couple of years the Operating Margin of CRI has declined.
CRI has a Gross Margin (46.79%) which is in line with its industry peers.
CRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 3.07% | ||
| GM | 46.79% |
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
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 2.63 indicates that CRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRI has a Altman-Z score (2.63) which is in line with its industry peers.
The Debt to FCF ratio of CRI is 5.42, which is a neutral value as it means it would take CRI, 5.42 years of fcf income to pay off all of its debts.
CRI has a Debt to FCF ratio of 5.42. This is comparable to the rest of the industry: CRI outperforms 53.33% 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: 64.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.63
WACC11%
2.3 Liquidity
A Current Ratio of 2.26 indicates that CRI has no problem at all paying its short term obligations.
CRI has a Current ratio of 2.26. This is in the better half of the industry: CRI outperforms 62.22% of its industry peers.
CRI has a Quick Ratio of 2.26. This is a bad value and indicates that CRI is not financially healthy enough and could expect problems in meeting its short term obligations.
CRI has a Quick ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
CRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
CRI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.36% yearly.
Looking at the last year, CRI shows a very negative growth in Revenue. The Revenue has decreased by -19.15% in the last year.
The Revenue has been decreasing by -4.17% on average over the past years.
EPS 1Y (TTM)-33.33%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-55.95%
Revenue 1Y (TTM)-19.15%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%-0.08%
3.2 Future
The Earnings Per Share is expected to decrease by -23.56% on average over the next years. This is quite bad
The Revenue is expected to grow by 0.19% on average over the next years.
EPS Next Y-50.92%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
EPS Next 5YN/A
Revenue Next Year1.37%
Revenue Next 2Y0.75%
Revenue Next 3Y0.19%
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
The Price/Earnings ratio is 7.80, which indicates a rather cheap valuation of CRI.
Based on the Price/Earnings ratio, CRI is valued cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, CRI is valued rather cheaply.
The Price/Forward Earnings ratio is 13.40, which indicates a correct valuation of CRI.
71.11% of the companies in the same industry are more expensive than CRI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.78. CRI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than CRI, based on the Enterprise Value to EBITDA ratio.
CRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRI is cheaper than 84.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as CRI's earnings are expected to decrease with -23.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
5. Dividend
5.1 Amount
CRI has a Yearly Dividend Yield of 3.21%. 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 2.65. CRI pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CRI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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
5.3 Sustainability
CRI pays out 87.45% of its income as dividend. 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.
DP87.45%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
32.45
-0.61 (-1.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners114.39%
Inst Owner Change-2.84%
Ins Owners2.87%
Ins Owner Change-0.27%
Market Cap1.18B
Revenue(TTM)2.83B
Net Income(TTM)87.00M
Analysts46.67
Price Target30.09 (-7.27%)
Short Float %11.2%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP87.45%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.64%
Min EPS beat(2)-56.97%
Max EPS beat(2)-0.32%
EPS beat(4)2
Avg EPS beat(4)-0.02%
Min EPS beat(4)-56.97%
Max EPS beat(4)33.81%
EPS beat(8)6
Avg EPS beat(8)13.85%
EPS beat(12)10
Avg EPS beat(12)20.28%
EPS beat(16)12
Avg EPS beat(16)15.61%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)2.56%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)2.56%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.69%
Revenue beat(16)7
Avg Revenue beat(16)0.1%
PT rev (1m)7.66%
PT rev (3m)19.92%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-11.78%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-6.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 13.4 | ||
| P/S | 0.42 | ||
| P/FCF | 12.86 | ||
| P/OCF | 7.82 | ||
| P/B | 1.37 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)4.16
EY12.82%
EPS(NY)2.42
Fwd EY7.46%
FCF(TTM)2.52
FCFY7.78%
OCF(TTM)4.15
OCFY12.78%
SpS77.71
BVpS23.72
TBVpS10.06
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 10.06% | ||
| ROCE | 8.76% | ||
| ROIC | 6.89% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 10.55% | ||
| OM | 6.09% | ||
| PM (TTM) | 3.07% | ||
| GM | 46.79% | ||
| FCFM | 3.25% |
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-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 107.95% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.51% | ||
| Profit Quality | 105.72% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.63 |
F-Score5
WACC11%
ROIC/WACC0.63
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)-33.33%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-55.95%
EPS Next Y-50.92%
EPS Next 2Y-36.84%
EPS Next 3Y-23.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.15%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%-0.08%
Revenue Next Year1.37%
Revenue Next 2Y0.75%
Revenue Next 3Y0.19%
Revenue Next 5YN/A
EBIT growth 1Y-52.45%
EBIT growth 3Y-16.9%
EBIT growth 5Y-6.69%
EBIT Next Year-18.79%
EBIT Next 3Y-6.27%
EBIT Next 5YN/A
FCF growth 1Y-79.82%
FCF growth 3Y1.66%
FCF growth 5Y-5.73%
OCF growth 1Y-70.46%
OCF growth 3Y3.65%
OCF growth 5Y-5.05%
CARTER'S INC / CRI FAQ
What is the ChartMill fundamental rating of CARTER'S INC (CRI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CRI.
Can you provide the valuation status for CARTER'S INC?
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.
What is the financial health of CARTER'S INC (CRI) stock?
The financial health rating of CARTER'S INC (CRI) is 5 / 10.
Can you provide the expected EPS growth for CRI stock?
The Earnings per Share (EPS) of CARTER'S INC (CRI) is expected to decline by -50.92% in the next year.