CARTER'S INC (CRI) Stock Fundamental Analysis
USA - NYSE:CRI - US1462291097 - Common Stock
29.51 USD
-0.02 (-0.07%)
29.34 USD
-0.17 (-0.58%)
Overall CRI gets a fundamental rating of 5 out of 10. We evaluated CRI against 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. This makes CRI very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year CRI was profitable.
CRI had a positive operating cash flow in the past year.
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
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 last Return On Invested Capital (8.98%) for CRI is well below the 3 year average (13.75%), which needs to be investigated, but indicates that CRI had better years and this may not be a problem.
| 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 68.75% 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 58.33% 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.
CRI has less shares outstanding than it did 1 year ago.
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 2.66 indicates that CRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRI has a Altman-Z score (2.66) which is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 3.55, CRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that CRI is somewhat dependend on debt financing.
CRI has a worse Debt to Equity ratio (0.58) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.88
WACC10.26%
2.3 Liquidity
A Current Ratio of 2.20 indicates that CRI has no problem at all paying its short term obligations.
CRI's Current ratio of 2.20 is fine compared to the rest of the industry. CRI outperforms 62.50% of its industry peers.
A Quick Ratio of 1.03 indicates that CRI should not have too much problems paying its short term obligations.
CRI has a Quick ratio (1.03) which is comparable to the rest of the 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%.
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 -19.89% in the last year.
CRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.17% yearly.
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 -25.63% on average per year.
CRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.43% yearly.
EPS Next Y-47.73%
EPS Next 2Y-37.89%
EPS Next 3Y-25.63%
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
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 5.79, the valuation of CRI can be described as very cheap.
97.92% 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 27.41, which is the current average of the S&P500 Index.
CRI is valuated correctly with a Price/Forward Earnings ratio of 12.60.
Based on the Price/Forward Earnings ratio, CRI is valued a bit cheaper than 70.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, CRI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
CRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRI is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| EV/EBITDA | 4.48 |
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
CRI has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.09, CRI pays a better dividend. On top of this CRI pays more dividend than 89.58% of the companies listed in the same industry.
CRI's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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
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%
29.51
-0.02 (-0.07%)
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 Change11.39%
Market Cap1.08B
Analysts46.15
Price Target25.09 (-14.98%)
Short Float %12.12%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-1.1%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-7%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.38 | ||
| P/FCF | 7.66 | ||
| P/OCF | 5.41 | ||
| P/B | 1.26 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 4.48 |
EPS(TTM)5.1
EY17.28%
EPS(NY)2.34
Fwd EY7.94%
FCF(TTM)3.85
FCFY13.06%
OCF(TTM)5.46
OCFY18.49%
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 | 2.66 |
F-Score6
WACC10.26%
ROIC/WACC0.88
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 Year0.63%
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-14.39%
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%