CRA International
Market Cap
US$398.8m
Last Updated
2020/02/21 00:59 UTC
Data Sources
Company Financials +
Executive Summary
CRA International, Inc., a consulting company, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally.
Rewards
Risk Analysis
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
| CRAI | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | 0.06% | 0.06% |
| 30 Day | -10.7% | 2.8% | 1.7% |
| 90 Day | 2.0% | 13.6% | 9.0% |
| 1 Year | 17.6%15.4% | 30.8%29.6% | 21.8%19.3% |
| 3 Year | 45.6%39.3% | 62.8%57.6% | 49.5%39.9% |
| 5 Year | 80.5%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
3 days ago | Simply Wall St
Evaluating CRA International, Inc.’s (NASDAQ:CRAI) Investments In Its Business1 week ago | Simply Wall St
How Does CRA International, Inc. (NASDAQ:CRAI) Fare As A Dividend Stock?2 weeks ago | Simply Wall St
Should CRA International (NASDAQ:CRAI) Be Disappointed With Their 82% Profit?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.3yrs | US$3.01m | 1.61% $6.4m | |
| Executive VP | 5.3yrs | US$1.03m | 0.29% $1.2m | |
| Executive VP & General Counsel | 16yrs | US$917.48k | 0.15% $592.4k | |
| VP & Director of Operations | 0yrs | no data | no data | |
| VP, Chief Accounting Officer & Corporate Controller | 2.8yrs | no data | no data | |
| Principal | 16.1yrs | no data | no data | |
| Principal | 0yrs | no data | no data | |
| VP & Head of European Competition Practice | 14.7yrs | no data | no data | |
| Principal | 20.6yrs | no data | no data | |
| Principal | 0yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.3yrs | US$3.01m | 1.61% $6.4m | |
| Independent Director | 4yrs | US$169.99k | 0.16% $630.3k | |
| Independent Director | 2.8yrs | US$149.99k | 0.096% $384.1k | |
| Independent Director | 19.7yrs | US$164.99k | 0.29% $1.2m | |
| Chairman Emeritus & Board Observer | 12.8yrs | no data | no data | |
| Chairman | 17.8yrs | US$314.99k | 0.91% $3.6m | |
| Independent Director | 5.2yrs | US$154.99k | 0.18% $719.4k | |
| Independent Director | 5.6yrs | US$174.99k | 0.19% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CR2 | MUN (Boerse Muenchen) | Yes | Common Stock | DE | EUR | Apr 1998 |
| CRAI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Apr 1998 |
| CR2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 00:59 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/29 |
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.