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CARTER'S INC (CRI) Stock Fundamental Analysis

NYSE:CRI - New York Stock Exchange, Inc. - US1462291097 - Common Stock - Currency: USD

31.85  +1.72 (+5.71%)

After market: 31.85 0 (0%)

Fundamental Rating

5

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 excellent financial health rating, but there are some minor concerns on its profitability. CRI has a bad growth rate and is valued cheaply. Finally CRI also has an excellent dividend rating. With these ratings, CRI could be worth investigating further for value and dividend investing!.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year CRI was profitable.
CRI had a positive operating cash flow in the past year.
In the past 5 years CRI has always been profitable.
Each year in the past 5 years CRI had a positive operating cash flow.
CRI Yearly Net Income VS EBIT VS OCF VS FCFCRI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

1.2 Ratios

CRI's Return On Assets of 8.45% is fine compared to the rest of the industry. CRI outperforms 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.
The Return On Invested Capital of CRI (12.72%) is better than 75.00% of its industry peers.
CRI had an Average Return On Invested Capital over the past 3 years of 13.75%. This is above the industry average of 11.45%.
Industry RankSector 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%
CRI Yearly ROA, ROE, ROICCRI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

The Profit Margin of CRI (5.67%) is better than 64.58% of its industry peers.
In the last couple of years the Profit Margin of CRI has declined.
CRI's Operating Margin of 8.95% is fine compared to the rest of the industry. CRI outperforms 60.42% of its industry peers.
In the last couple of years the Operating Margin of CRI has declined.
CRI has a Gross Margin of 47.68%. This is comparable to the rest of the industry: CRI outperforms 41.67% of its industry peers.
In the last couple of years the Gross Margin of CRI has grown nicely.
Industry RankSector 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%
CRI Yearly Profit, Operating, Gross MarginsCRI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

7

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
Compared to 5 years ago, CRI has less shares outstanding
CRI has a better debt/assets ratio than last year.
CRI Yearly Shares OutstandingCRI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
CRI Yearly Total Debt VS Total AssetsCRI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

CRI has an Altman-Z score of 3.26. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI has a better Altman-Z score (3.26) 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.
Looking at the Debt to FCF ratio, with a value of 2.25, CRI is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
CRI has a Debt/Equity ratio of 0.59. This is a neutral value indicating CRI is somewhat dependend on debt financing.
CRI has a worse Debt to Equity ratio (0.59) than 64.58% 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 RankSector Rank
Debt/Equity 0.59
Debt/FCF 2.25
Altman-Z 3.26
ROIC/WACC1.53
WACC8.32%
CRI Yearly LT Debt VS Equity VS FCFCRI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 2.56 indicates that CRI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.56, CRI is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
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.
CRI has a Quick ratio of 1.40. This is comparable to the rest of the industry: CRI outperforms 58.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.56
Quick Ratio 1.4
CRI Yearly Current Assets VS Current LiabilitesCRI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1

3. Growth

3.1 Past

The earnings per share for CRI have decreased by -9.39% in the last year.
The Earnings Per Share has been decreasing by -1.36% on average over the past years.
The Revenue has decreased by -3.69% in the past 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

The Earnings Per Share is expected to decrease by -24.22% on average over the next years. This is quite bad
CRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.73% yearly.
EPS Next Y-43.8%
EPS Next 2Y-33.74%
EPS Next 3Y-24.22%
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.
CRI Yearly Revenue VS EstimatesCRI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
CRI Yearly EPS VS EstimatesCRI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.60, 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 95.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CRI to the average of the S&P500 Index (27.21), we can say CRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.95, the valuation of CRI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRI indicates a somewhat cheap valuation: CRI is cheaper than 77.08% of the companies listed in the same industry.
CRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.6
Fwd PE 11.95
CRI Price Earnings VS Forward Price EarningsCRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 95.83% of the companies listed in the same industry.
93.75% of the companies in the same industry are more expensive than CRI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.25
EV/EBITDA 3.64
CRI Per share dataCRI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

CRI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CRI's earnings are expected to decrease with -24.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.74%
EPS Next 3Y-24.22%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.68%, CRI is a good candidate for dividend investing.
CRI's Dividend Yield is rather good when compared to the industry average which is at 3.85. CRI pays more dividend than 95.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, CRI pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.68%

5.2 History

On average, the dividend of CRI grows each year by 16.75%, which is quite nice.
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
CRI Yearly Dividends per shareCRI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

58.78% of the earnings are spent on dividend by CRI. This is a bit on the high side, but may be sustainable.
CRI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP58.78%
EPS Next 2Y-33.74%
EPS Next 3Y-24.22%
CRI Yearly Income VS Free CF VS DividendCRI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
CRI Dividend Payout.CRI Dividend Payout, showing the Payout Ratio.CRI Dividend Payout.PayoutRetained Earnings

CARTER'S INC

NYSE:CRI (7/1/2025, 8:13:03 PM)

After market: 31.85 0 (0%)

31.85

+1.72 (+5.71%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-25 2025-07-25/bmo
Inst Owners116.39%
Inst Owner Change-3.13%
Ins Owners2.6%
Ins Owner Change18.56%
Market Cap1.16B
Analysts47.14
Price Target30.19 (-5.21%)
Short Float %12.78%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield 8.68%
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP58.78%
Div Incr Years1
Div Non Decr Years4
Ex-Date06-02 2025-06-02 (0.25)
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)-35.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)2.35%
EPS NY rev (3m)-11.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-0.88%
Valuation
Industry RankSector Rank
PE 5.6
Fwd PE 11.95
P/S 0.33
P/FCF 5.25
P/OCF 4.21
P/B 1.37
P/tB 3.33
EV/EBITDA 3.64
EPS(TTM)5.69
EY17.86%
EPS(NY)2.66
Fwd EY8.37%
FCF(TTM)6.07
FCFY19.06%
OCF(TTM)7.57
OCFY23.75%
SpS95.33
BVpS23.25
TBVpS9.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 3.26
F-Score7
WACC8.32%
ROIC/WACC1.53
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-43.8%
EPS Next 2Y-33.74%
EPS Next 3Y-24.22%
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%