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

Excellent balance sheet and good value.


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

2.0%

CRAI

0.5%

US Professional Services

1.0%

US Market


1 Year Return

-4.0%

CRAI

19.8%

US Professional Services

8.0%

US Market

Return vs Industry: CRAI underperformed the US Professional Services industry which returned 19.8% over the past year.

Return vs Market: CRAI underperformed the US Market which returned 8% over the past year.


Shareholder returns

CRAIIndustryMarket
7 Day2.0%0.5%1.0%
30 Day-5.6%-0.1%-0.07%
90 Day8.1%-0.3%-1.0%
1 Year-2.2%-4.0%21.0%19.8%10.4%8.0%
3 Year58.3%50.9%55.5%50.3%46.2%36.7%
5 Year48.6%41.7%86.9%76.8%64.3%46.2%

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?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRAI ($41.73) is trading below our estimate of fair value ($57.03)

Significantly Below Fair Value: CRAI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CRAI is good value based on its PE Ratio (16x) compared to the Professional Services industry average (20.8x).

PE vs Market: CRAI is good value based on its PE Ratio (16x) compared to the US market (17.6x).


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 (1.7x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRAI's forecast earnings growth (10.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CRAI's earnings (10.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CRAI's revenue (5.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CRAI's revenue (5.2% 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 (12.5%).


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

Earnings Trend: CRAI's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: CRAI's earnings growth over the past year (66.5%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: CRAI earnings growth over the past year (66.5%) exceeded the Professional Services industry 36.8%.


Return on Equity

High ROE: CRAI's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: CRAI's Return on Assets is below or equal to the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: CRAI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CRA International's financial position?


Financial Position Analysis

Short Term Liabilities: CRAI's short term assets ($165.5M) exceeds its short term liabilities ($152.8M)

Long Term Liabilities: CRAI's short term assets (165.5M) exceeds its long term liabilities (138.3M)


Debt to Equity History and Analysis

Debt Level: CRAI's debt to equity ratio (21%) is considered satisfactory

Reducing Debt: CRAI's debt to equity ratio has increased from 0.4% to 21% over the past 5 years.

Debt Coverage: CRAI's debt is well covered by operating cash flow (55.8%).

Interest Coverage: CRAI's interest payments on its debt are well covered by EBIT (32.6x 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 4.035560x debt).


Next Steps

  • Explore more healthy companies in the Commercial Services industry.

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CRAI's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CRAI's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (29.4%), 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

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

14.3yrs

Average management tenure


CEO

Paul Maleh (55yo)

9.9yrs

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 ($USD3.01M) is about average for companies of similar size in the US market ($USD1.82M).

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


Management Age and Tenure

14.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CRAI's management team is seasoned and experienced (14.3 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CRAI's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 15.7yrs
    • Compensation: US$917.48k
  • Paul Maleh (55yo)

    President

    • Tenure: 9.9yrs
    • Compensation: US$3.01m
  • Samuel Lynch

    Principal

    • Tenure: 15.8yrs
  • Elahd Toam

    Principal

    • Tenure: 0yrs
  • Cristina Caffarra

    VP & Head of European Competition Practice

    • Tenure: 14.3yrs
  • Elizabeth Wang

    Principal

    • Tenure: 0yrs
  • Miguel Herce

    Principal

    • Tenure: 20.3yrs
  • Douglas Miller (54yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 2.5yrs
  • Chad Holmes (46yo)

    Executive VP

    • Tenure: 4.9yrs
    • Compensation: US$1.03m
  • Mary Savio

    VP & Director of Operations

    • Tenure: 0yrs

Board Members

  • Tom Avery (65yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$169.99k
  • Bob Whitman (65yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$149.99k
  • Bill Concannon (63yo)

    Director

    • Tenure: 19.3yrs
    • Compensation: US$164.99k
  • Franklin Fisher (84yo)

    Chairman Emeritus & Board Observer

    • Tenure: 12.5yrs
  • Row Moriarty (72yo)

    Chairman

    • Tenure: 17.4yrs
    • Compensation: US$314.99k
  • Nancy Hawthorne (68yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$154.99k
  • Robert Holthausen (71yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$174.99k
  • Paul Maleh (55yo)

    President

    • Tenure: 9.9yrs
    • 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$328.648m
  • 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
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 Analysis2019/10/21 23:53
End of Day Share Price2019/10/21 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.