NasdaqGS:CRAI

Stock Analysis Report

Executive Summary

CRA International, Inc., a consulting company, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has CRA International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRAI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

CRAI

0.06%

US Professional Services

0.06%

US Market


1 Year Return

15.4%

CRAI

29.6%

US Professional Services

19.3%

US Market

Return vs Industry: CRAI underperformed the US Professional Services industry which returned 29.6% over the past year.

Return vs Market: CRAI underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

CRAIIndustryMarket
7 Day-3.8%0.06%0.06%
30 Day-10.7%2.8%1.7%
90 Day2.0%13.6%9.0%
1 Year17.6%15.4%30.8%29.6%21.8%19.3%
3 Year45.6%39.3%62.8%57.6%49.5%39.9%
5 Year80.5%71.3%82.9%73.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is CRA International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CRA International undervalued compared to its fair value and its price relative to the market?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRAI ($51.53) is trading below our estimate of fair value ($72.76)

Significantly Below Fair Value: CRAI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CRAI is good value based on its PE Ratio (18x) compared to the Professional Services industry average (20.3x).

PE vs Market: CRAI is good value based on its PE Ratio (18x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRAI is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CRAI is good value based on its PB Ratio (2.1x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is CRA International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRAI's forecast earnings growth (11.9% per year) is above the savings rate (1.7%).

Earnings vs Market: CRAI's earnings (11.9% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: CRAI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRAI's revenue (6.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CRAI's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRAI's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has CRA International performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRAI has high quality earnings.

Growing Profit Margin: CRAI's current net profit margins (5.2%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: CRAI's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: CRAI's earnings growth over the past year (71.2%) exceeds its 5-year average (13% per year).

Earnings vs Industry: CRAI earnings growth over the past year (71.2%) exceeded the Professional Services industry 10.6%.


Return on Equity

High ROE: CRAI's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CRA International's financial position?


Financial Position Analysis

Short Term Liabilities: CRAI's short term assets ($180.4M) exceed its short term liabilities ($172.2M).

Long Term Liabilities: CRAI's short term assets ($180.4M) exceed its long term liabilities ($141.0M).


Debt to Equity History and Analysis

Debt Level: CRAI's debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: CRAI's debt to equity ratio has increased from 0.4% to 18.7% over the past 5 years.

Debt Coverage: CRAI's debt is well covered by operating cash flow (68.5%).

Interest Coverage: CRAI's interest payments on its debt are well covered by EBIT (30.3x coverage).


Balance Sheet

Inventory Level: CRAI has a high level of physical assets or inventory.

Debt Coverage by Assets: CRAI's debt is covered by short term assets (assets are 5x debt).


Next Steps

Dividend

What is CRA International's current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CRAI's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CRAI's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CRAI has been paying a dividend for less than 10 years.

Growing Dividend: CRAI's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), CRAI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.7yrs

Average management tenure


CEO

Paul Maleh (55yo)

10.3yrs

Tenure

US$3,006,723

Compensation

Mr. Paul A. Maleh has been the Chief Executive Officer and President of CRA International Inc. (formerly known as Charles River Associates Inc.) since November 29, 2009. Mr. Maleh has been an Integral Memb ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD3.01M) is above average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Maleh
President10.3yrsUS$3.01m1.61% $6.4m
Chad Holmes
Executive VP5.3yrsUS$1.03m0.29% $1.2m
Jonathan Yellin
Executive VP & General Counsel16yrsUS$917.48k0.15% $592.4k
Mary Savio
VP & Director of Operations0yrsno datano data
Douglas Miller
VP, Chief Accounting Officer & Corporate Controller2.8yrsno datano data
Samuel Lynch
Principal16.1yrsno datano data
Elahd Toam
Principal0yrsno datano data
Cristina Caffarra
VP & Head of European Competition Practice14.7yrsno datano data
Miguel Herce
Principal20.6yrsno datano data
Xiao-Ru Wang
Principal0yrsno datano data

14.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CRAI's management team is seasoned and experienced (14.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Maleh
President10.3yrsUS$3.01m1.61% $6.4m
Thomas Avery
Independent Director4yrsUS$169.99k0.16% $630.3k
Robert Whitman
Independent Director2.8yrsUS$149.99k0.096% $384.1k
William Concannon
Independent Director19.7yrsUS$164.99k0.29% $1.2m
Franklin Fisher
Chairman Emeritus & Board Observer12.8yrsno datano data
Rowland Moriarty
Chairman17.8yrsUS$314.99k0.91% $3.6m
Nancy Hawthorne
Independent Director5.2yrsUS$154.99k0.18% $719.4k
Robert Holthausen
Independent Director5.6yrsUS$174.99k0.19% $752.4k

7.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CRAI's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CRAI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CRA International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CRA International, Inc.
  • Ticker: CRAI
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$398.812m
  • Shares outstanding: 7.74m
  • Website: https://www.crai.com

Number of Employees


Location

  • CRA International, Inc.
  • 200 Clarendon Street
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CR2MUN (Boerse Muenchen)YesCommon StockDEEURApr 1998
CRAINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1998
CR2DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1998

Biography

CRA International, Inc., a consulting company, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, new product pricing strategies, valuation of intellectual property and other assets, assessment of competitors' actions, and analysis of new sources of supply. The company serves various industries, including agriculture, banking and capital markets, chemicals, communications and media, consumer products, energy, entertainment, financial services, health care, insurance, life sciences, manufacturing, oil and gas, real estate, retail, sports, telecommunications, transportation, and technology, as well as metals, mining, and materials. CRA International, Inc. was founded in 1965 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:59
End of Day Share Price2020/02/20 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.