CARTER'S INC (CRI)
US1462291097 - Common Stock
CRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRI is cheap, but on the other hand it scores bad on growth. Finally CRI also has an excellent dividend rating. These ratings could make CRI a good candidate for value and dividend 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.
Each year in the past 5 years CRI has been profitable.
CRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.08%, CRI belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
CRI has a Return On Equity of 31.19%. This is amongst the best in the industry. CRI outperforms 86.00% of its industry peers.
CRI has a better Return On Invested Capital (15.85%) than 86.00% of its industry peers.
CRI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is above the industry average of 10.04%.
The last Return On Invested Capital (15.85%) for CRI is above the 3 year average (14.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.19% | ||
| ROIC | 15.85% |
ROA(3y)10.07%
ROA(5y)8.58%
ROE(3y)31.08%
ROE(5y)26.9%
ROIC(3y)14.99%
ROIC(5y)13.55%
1.3 Margins
The Profit Margin of CRI (7.24%) is better than 82.00% of its industry peers.
In the last couple of years the Profit Margin of CRI has remained more or less at the same level.
CRI has a Operating Margin of 10.43%. This is in the better half of the industry: CRI outperforms 76.00% of its industry peers.
CRI's Operating Margin has been stable in the last couple of years.
CRI's Gross Margin of 46.83% is in line compared to the rest of the industry. CRI outperforms 52.00% of its industry peers.
CRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 46.83% |
OM growth 3Y3.44%
OM growth 5Y-0.58%
PM growth 3Y29.22%
PM growth 5Y-0.85%
GM growth 3Y2.57%
GM growth 5Y1.84%
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.
CRI has less shares outstanding than it did 1 year ago.
CRI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that CRI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.90, CRI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
CRI has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.06, CRI is doing good in the industry, outperforming 74.00% 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 Debt to Equity ratio of 0.59. This is in the lower half of the industry: CRI underperforms 64.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.7
WACC9.33%
2.3 Liquidity
CRI has a Current Ratio of 2.15. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
CRI has a Current ratio of 2.15. This is comparable to the rest of the industry: CRI outperforms 50.00% of its industry peers.
CRI has a Quick Ratio of 1.10. 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 (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.12%.
Measured over the past years, CRI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.35% on average per year.
The Revenue has grown by 13.35% in the past year. This is quite good.
CRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.18% yearly.
EPS 1Y (TTM)-10.12%
EPS 3Y14.44%
EPS 5Y-0.35%
EPS growth Q2Q20.52%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-0.88%
Revenue growth 5Y-3.18%
Revenue growth Q2Q-5.95%
3.2 Future
CRI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y3.16%
EPS Next 2Y4.03%
EPS Next 3Y6.07%
EPS Next 5YN/A
Revenue Next Year0.27%
Revenue Next 2Y1.15%
Revenue Next 3Y1.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 11.87, which indicates a very decent valuation of CRI.
Based on the Price/Earnings ratio, CRI is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CRI to the average of the S&P500 Index (25.20), we can say CRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.51, the valuation of CRI can be described as reasonable.
76.00% of the companies in the same industry are more expensive than CRI, based on the Price/Forward Earnings ratio.
CRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaper than 84.00% of the companies in the same industry.
CRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRI is cheaper than 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CRI may justify a higher PE ratio.
PEG (NY)3.75
PEG (5Y)N/A
EPS Next 2Y4.03%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.48%, CRI is a good candidate for dividend investing.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.97. CRI pays more dividend than 94.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, CRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
5.2 History
The dividend of CRI is nicely growing with an annual growth rate of 27.93%!
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)27.93%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
42.49% of the earnings are spent on dividend by CRI. This is a bit on the high side, but may be sustainable.
The dividend of CRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.49%
EPS Next 2Y4.03%
EPS Next 3Y6.07%
CARTER'S INC
NYSE:CRI (4/23/2024, 6:52:02 PM)
After market: 73.86 0 (0%)73.86
+1.85 (+2.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 11.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 46.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-10.12%
EPS 3Y14.44%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-0.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y