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

Fundamentals

Undervalued with excellent balance sheet.


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


Market Performance


7 Day Return

0.9%

NasdaqGS:CRAI

0.7%

US Professional Services

0.9%

US Market


1 Year Return

-25.9%

NasdaqGS:CRAI

9.3%

US Professional Services

0.3%

US Market

CRAI underperformed the Professional Services industry which returned 9.3% over the past year.

CRAI underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

CRAIIndustryMarket
7 Day0.9%0.7%0.9%
30 Day10.7%1.3%-1.9%
90 Day4.8%9.4%1.6%
1 Year-24.7%-25.9%10.2%9.3%2.6%0.3%
3 Year62.3%55.5%50.6%45.9%41.0%31.8%
5 Year61.4%54.6%73.8%64.9%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CRA International's share price is below the future cash flow value, and at a moderate discount (> 20%).

CRA International's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

CRA International is good value based on earnings compared to the US Professional Services industry average.

CRA International is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

CRA International is poor value based on expected growth next year.


Price Based on Value of Assets

CRA International is good value based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CRA International's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

CRA International's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

CRA International's revenue growth is positive but not above the United States of America market average.

CRA International's earnings growth is positive but not above the United States of America market average.

CRA International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CRA International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has CRA International performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CRA International's year on year earnings growth rate has been positive over the past 5 years.

CRA International's 1-year earnings growth exceeds its 5-year average (66.5% vs 9.2%)

CRA International's earnings growth has exceeded the US Professional Services industry average in the past year (66.5% vs 34.4%).


Return on Equity

CRA International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CRA International used its assets less efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

CRA International has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CRA International's financial position?


Financial Position Analysis

CRA International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CRA International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CRA International's level of debt (21%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.4% vs 21% today).

Debt is well covered by operating cash flow (55.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 32.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4x debt.


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CRA International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

CRA International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

CRA International's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Whilst dividend payments have been stable, CRA International has been paying a dividend for less than 10 years.

Dividend payments have increased, but CRA International only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of CRA International's salary, the management and board of directors tenure and is there insider trading?

14.2yrs

Average management tenure


CEO

Paul Maleh (55yo)

9.8yrs

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

Paul's remuneration is higher than average for companies of similar size in United States of America.

Paul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

14.2yrs

Average Tenure

54.5yo

Average Age

The average tenure for the CRA International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.4yrs

Average Tenure

66.5yo

Average Age

The tenure for the CRA International board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$460,52118 Mar 19
Rowland Moriarty
EntityIndividual
Role
Chairman of the Board
Chairman
Shares9,000
Max PriceUS$52.00
SellUS$192,04913 Mar 19
Rowland Moriarty
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,785
Max PriceUS$51.64
SellUS$175,21212 Mar 19
Rowland Moriarty
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,500
Max PriceUS$50.06
SellUS$186,45108 Mar 19
Rowland Moriarty
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,715
Max PriceUS$50.19
SellUS$1,211,45006 Mar 19
Paul Maleh
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$50.32

Ownership Breakdown


Management Team

  • Jonathan Yellin (55yo)

    Executive VP & General Counsel

    • Tenure: 15.5yrs
    • Compensation: US$917.48k
  • Paul Maleh (55yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$3.01m
  • Samuel Lynch

    Principal

    • Tenure: 15.6yrs
  • Elahd Toam

    Principal

    • Tenure: 0.0yrs
  • Cristina Caffarra

    VP & Head of European Competition Practice

    • Tenure: 14.2yrs
  • Elizabeth Wang

    Principal

    • Tenure: 0.0yrs
  • Miguel Herce

    Principal

    • Tenure: 20.1yrs
  • Douglas Miller (54yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 2.3yrs
  • Chad Holmes (46yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$1.03m
  • Mary Savio

    VP & Director of Operations

    • Tenure: 0.0yrs

Board Members

  • Tom Avery (65yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$169.99k
  • Bob Whitman (65yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$149.99k
  • Bill Concannon (63yo)

    Director

    • Tenure: 19.2yrs
    • Compensation: US$164.99k
  • Franklin Fisher (84yo)

    Chairman Emeritus & Board Observer

    • Tenure: 12.3yrs
  • Row Moriarty (72yo)

    Chairman

    • Tenure: 17.3yrs
    • Compensation: US$314.99k
  • Nancy Hawthorne (68yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$154.99k
  • Robert Holthausen (71yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$174.99k
  • Paul Maleh (55yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$3.01m

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$328.491m
  • Shares outstanding: 7.88m
  • 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
CR2MUN (Boerse Muenchen)YesCommon StockDEEURApr 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:04
End of Day Share Price2019/08/20 00:00
Earnings2019/06/29
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.