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CRI

Carter's NYSE:CRI Stock Report

Last Price

US$70.80

Market Cap

US$2.9b

7D

-5.3%

1Y

-31.7%

Updated

01 Jul, 2022

Data

Company Financials +
CRI fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends2/6

CRI Stock Overview

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter’s My First Love, little planet, and other brands in the United States and internationally.

Carter's Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Carter's
Historical stock prices
Current Share PriceUS$70.80
52 Week HighUS$111.17
52 Week LowUS$67.88
Beta1.29
1 Month Change-7.45%
3 Month Change-20.64%
1 Year Change-31.74%
3 Year Change-25.10%
5 Year Change-19.40%
Change since IPO474.44%

Recent News & Updates

Jun 23
When Should You Buy Carter's, Inc. (NYSE:CRI)?

When Should You Buy Carter's, Inc. (NYSE:CRI)?

Carter's, Inc. ( NYSE:CRI ), might not be a large cap stock, but it saw significant share price movement during recent...

Jun 07

Carter's Dividend And Share Repurchases Make It A Buy

Carter's retail business remains strong, with the wholesale and international segments both growing roughly 10% year-over-year. Margins fell in Q1, mainly on transportation costs, and that appears to have spooked some analysts, including BofA. Currently Carter's will pay a $3/share dividend and management guided for $250 million in share repurchases for FY2022.

Jun 07
Carter's, Inc.'s (NYSE:CRI) Intrinsic Value Is Potentially 83% Above Its Share Price

Carter's, Inc.'s (NYSE:CRI) Intrinsic Value Is Potentially 83% Above Its Share Price

Does the June share price for Carter's, Inc. ( NYSE:CRI ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

CRIUS LuxuryUS Market
7D-5.3%-9.5%-2.5%
1Y-31.7%-36.7%-21.2%

Return vs Industry: CRI exceeded the US Luxury industry which returned -35.5% over the past year.

Return vs Market: CRI underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is CRI's price volatile compared to industry and market?
CRI volatility
CRI Average Weekly Movement5.5%
Luxury Industry Average Movement7.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: CRI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CRI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186515,900Mike Caseyhttps://www.carters.com

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter’s My First Love, little planet, and other brands in the United States and internationally. The company operates through three segments: U.S. Retail, U.S.

Carter's Fundamentals Summary

How do Carter's's earnings and revenue compare to its market cap?
CRI fundamental statistics
Market CapUS$2.85b
Earnings (TTM)US$317.48m
Revenue (TTM)US$3.48b

9.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRI income statement (TTM)
RevenueUS$3.48b
Cost of RevenueUS$1.86b
Gross ProfitUS$1.63b
Other ExpensesUS$1.31b
EarningsUS$317.48m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.88
Gross Margin46.70%
Net Profit Margin9.12%
Debt/Equity Ratio108.4%

How did CRI perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CRI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CRI?

Other financial metrics that can be useful for relative valuation.

CRI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA6.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does CRI's PE Ratio compare to its peers?

CRI PE Ratio vs Peers
The above table shows the PE ratio for CRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.2x
HBI Hanesbrands
7.1x8.7%US$3.6b
UAA Under Armour
17.6x9.0%US$3.7b
PVH PVH
3.9x9.6%US$3.8b
COLM Columbia Sportswear
12.3x6.8%US$4.5b
CRI Carter's
9x9.4%US$2.9b

Price-To-Earnings vs Peers: CRI is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (10.2x).


Price to Earnings Ratio vs Industry

How does CRI's PE Ratio compare vs other companies in the US Luxury Industry?

Price-To-Earnings vs Industry: CRI is good value based on its Price-To-Earnings Ratio (9x) compared to the US Luxury industry average (9.4x)


Price to Earnings Ratio vs Fair Ratio

What is CRI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: CRI is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


Share Price vs Fair Value

What is the Fair Price of CRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CRI ($70.8) is trading below our estimate of fair value ($147.58)

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


Price to Earnings Growth Ratio

PEG Ratio: CRI is good value based on its PEG Ratio (1x)


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Future Growth

How is Carter's forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRI's forecast earnings growth (9.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CRI's earnings (9.4% per year) are forecast to grow slower than the US market (13.6% per year).

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

Revenue vs Market: CRI's revenue (2.5% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: CRI's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRI's Return on Equity is forecast to be high in 3 years time (34.7%)


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Past Performance

How has Carter's performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.09%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CRI has high quality earnings.

Growing Profit Margin: CRI's current net profit margins (9.1%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: CRI's earnings have declined by 0.09% per year over the past 5 years.

Accelerating Growth: CRI's earnings growth over the past year (17.2%) exceeds its 5-year average (-0.09% per year).

Earnings vs Industry: CRI earnings growth over the past year (17.2%) underperformed the Luxury industry 88.3%.


Return on Equity

High ROE: Whilst CRI's Return on Equity (35.12%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Carter's's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CRI's short term assets ($1.7B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: CRI's short term assets ($1.7B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: CRI's net debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: CRI's debt to equity ratio has increased from 75.6% to 108.4% over the past 5 years.

Debt Coverage: CRI's debt is not well covered by operating cash flow (14.5%).

Interest Coverage: CRI's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CRI's dividend (4.24%) is higher than the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: CRI's dividend (4.24%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: CRI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CRI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.5%), CRI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (109.3%), CRI's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure


CEO

Mike Casey (61 yo)

13.83yrs

Tenure

US$11,056,385

Compensation

Mr. Michael D. Casey, also known as Mike, has been the Chief Executive Officer of Carter's, Inc. since August 1, 2008 and served as its President from December 2009 to December 2012. Mr. Casey joined Carte...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD11.06M) is above average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CRI's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: CRI's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: CRI insiders have bought more shares than they have sold 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

Carter's, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Carter's, Inc.
  • Ticker: CRI
  • Exchange: NYSE
  • Founded: 1865
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Implied Market Cap: US$2.853b
  • Shares outstanding: 40.29m
  • Website: https://www.carters.com

Number of Employees


Location

  • Carter's, Inc.
  • Phipps Tower
  • Suite 1800
  • Atlanta
  • Georgia
  • 30326
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/02
Annual Earnings2022/01/01


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.