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Carter's

NYSE:CRI
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CRI
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Consumer Durables
Company description

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, Child of Mine, Just One You, Precious Firsts, Precious Baby, Simple Joys, OshKosh B'gosh, Skip Hop, and other brands. The last earnings update was 79 days ago. More info.


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CRI Share Price and Events
7 Day Returns
0.7%
NYSE:CRI
0.9%
US Luxury
-0.3%
US Market
1 Year Returns
-21.5%
NYSE:CRI
2.2%
US Luxury
3.4%
US Market
CRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Carter's (CRI) 0.7% -3.3% -11.4% -21.5% -17% 16.8%
US Luxury 0.9% 3.3% -4.6% 2.2% 26.5% 47.7%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • CRI underperformed the Luxury industry which returned 2.2% over the past year.
  • CRI underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
CRI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Carter's undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Carter's to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Carter's.

NYSE:CRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CRI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.811 (1 + (1- 21%) (35.24%))
1.025
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.025 * 5.96%)
8.84%

Discounted Cash Flow Calculation for NYSE:CRI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Carter's is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CRI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.84%)
2020 303.27 Analyst x3 278.64
2021 302.50 Analyst x2 255.36
2022 352.00 Analyst x1 273.02
2023 358.00 Analyst x1 255.12
2024 365.17 Est @ 2% 239.10
2025 373.28 Est @ 2.22% 224.56
2026 382.14 Est @ 2.37% 211.22
2027 391.62 Est @ 2.48% 198.88
2028 401.63 Est @ 2.56% 187.40
2029 412.10 Est @ 2.61% 176.67
Present value of next 10 years cash flows $2,299.97
NYSE:CRI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $412.10 × (1 + 2.73%) ÷ (8.84% – 2.73%)
$6,930.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,930.09 ÷ (1 + 8.84%)10
$2,970.97
NYSE:CRI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,299.97 + $2,970.97
$5,270.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,270.93 / 45.21
$116.59
NYSE:CRI Discount to Share Price
Calculation Result
Value per share (USD) From above. $116.59
Current discount Discount to share price of $92.23
= -1 x ($92.23 - $116.59) / $116.59
20.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Carter's is available for.
Intrinsic value
21%
Share price is $92.23 vs Future cash flow value of $116.59
Current Discount Checks
For Carter's to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Carter's's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Carter's's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Carter's's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Carter's's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $5.95
NYSE:CRI Share Price ** NYSE (2019-07-18) in USD $92.23
United States of America Luxury Industry PE Ratio Median Figure of 37 Publicly-Listed Luxury Companies 17.35x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Carter's.

NYSE:CRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CRI Share Price ÷ EPS (both in USD)

= 92.23 ÷ 5.95

15.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carter's is good value based on earnings compared to the US Luxury industry average.
  • Carter's is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Carter's's expected growth come at a high price?
Raw Data
NYSE:CRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
3.6%per year
United States of America Luxury Industry PEG Ratio Median Figure of 28 Publicly-Listed Luxury Companies 1.7x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:CRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.51x ÷ 3.6%

4.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carter's is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Carter's's assets?
Raw Data
NYSE:CRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $18.72
NYSE:CRI Share Price * NYSE (2019-07-18) in USD $92.23
United States of America Luxury Industry PB Ratio Median Figure of 48 Publicly-Listed Luxury Companies 1.41x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:CRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CRI Share Price ÷ Book Value per Share (both in USD)

= 92.23 ÷ 18.72

4.93x

* Primary Listing of Carter's.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carter's is overvalued based on assets compared to the US Luxury industry average.
X
Value checks
We assess Carter's's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Carter's has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Carter's expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Carter's expected to grow at an attractive rate?
  • Carter's's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Carter's's earnings growth is positive but not above the United States of America market average.
  • Carter's's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CRI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 3.6%
NYSE:CRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.4%
United States of America Luxury Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
United States of America Luxury Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CRI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,893 452 332 1
2022-12-31 3,806 443 323 1
2021-12-31 3,710 404 315 5
2020-12-31 3,640 393 311 10
2019-12-31 3,538 441 293 10
NYSE:CRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 3,448 329 272
2018-12-29 3,462 356 280
2018-09-29 3,404 233 285
2018-06-30 3,428 325 296
2018-03-31 3,423 310 296
2017-12-30 3,401 330 300
2017-09-30 3,307 370 252
2017-07-01 3,260 391 250
2017-04-01 3,208 325 249
2016-12-31 3,199 369 256
2016-10-01 3,132 279 242
2016-07-02 3,080 366 240
2016-04-02 3,053 349 240

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Carter's's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
  • Carter's's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Carter's Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CRI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 9.04 9.04 9.04 1.00
2022-12-31 8.35 8.35 8.35 1.00
2021-12-31 7.64 8.00 7.36 4.00
2020-12-31 7.22 7.33 7.05 7.00
2019-12-31 6.56 6.65 6.47 7.00
NYSE:CRI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 5.95
2018-12-29 6.06
2018-09-29 6.13
2018-06-30 6.31
2018-03-31 6.28
2017-12-30 6.31
2017-09-30 5.24
2017-07-01 5.15
2017-04-01 5.06
2016-12-31 5.12
2016-10-01 4.78
2016-07-02 4.69
2016-04-02 4.65

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Carter's is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Carter's's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Carter's has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Carter's's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Carter's's year on year earnings growth rate has been positive over the past 5 years.
  • Carter's's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Carter's's 1-year earnings growth is negative, it can't be compared to the US Luxury industry average.
Earnings and Revenue History
Carter's's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Carter's Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CRI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 3,447.54 271.95 1,126.87
2018-12-29 3,462.27 279.92 1,144.98
2018-09-29 3,403.68 285.33 1,153.93
2018-06-30 3,427.82 295.77 1,156.09
2018-03-31 3,423.46 296.36 1,144.53
2017-12-30 3,400.50 300.44 1,110.53
2017-09-30 3,306.83 251.82 1,064.04
2017-07-01 3,260.21 250.33 1,035.89
2017-04-01 3,207.93 248.75 1,012.57
2016-12-31 3,198.54 255.66 995.41
2016-10-01 3,131.53 241.60 970.52
2016-07-02 3,079.91 240.05 946.23
2016-04-02 3,053.20 239.94 925.16
2016-01-02 3,013.88 235.64 909.23
2015-10-03 3,016.56 231.38 883.60
2015-07-04 2,965.69 217.75 874.06
2015-04-04 2,926.99 207.49 867.03
2015-01-03 2,893.87 192.08 879.78
2014-09-27 2,794.30 166.54 858.68
2014-06-28 2,755.54 157.37 860.15
2014-03-29 2,699.35 151.28 844.60
2013-12-28 2,638.71 158.26 812.77
2013-09-28 2,558.31 164.16 793.51
2013-06-29 2,466.79 166.90 755.71
2013-03-30 2,421.08 168.04 728.29
2012-12-29 2,381.73 159.06 700.13
2012-09-29 2,299.11 145.45 649.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Carter's has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Carter's used its assets more efficiently than the US Luxury industry average last year based on Return on Assets.
  • Carter's's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Carter's's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Carter's has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Carter's's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Carter's's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Carter's is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Carter's's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Carter's's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Carter's Company Filings, last reported 3 months ago.

NYSE:CRI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 849.40 625.28 160.15
2018-12-29 869.43 593.26 170.08
2018-09-29 811.19 798.02 123.90
2018-06-30 810.33 682.78 183.20
2018-03-31 854.81 617.54 180.26
2017-12-30 857.42 617.31 178.49
2017-09-30 771.96 687.07 105.37
2017-07-01 749.91 661.85 173.56
2017-04-01 771.96 581.62 154.28
2016-12-31 788.12 580.38 299.36
2016-10-01 776.13 580.61 140.63
2016-07-02 766.70 580.68 205.08
2016-04-02 848.72 580.32 395.14
2016-01-02 875.05 578.97 381.21
2015-10-03 842.94 585.28 288.26
2015-07-04 802.94 586.30 244.30
2015-04-04 805.71 586.35 377.40
2015-01-03 786.68 586.00 340.64
2014-09-27 751.58 586.00 133.65
2014-06-28 720.37 586.00 207.92
2014-03-29 729.15 586.00 277.24
2013-12-28 700.73 586.00 286.55
2013-09-28 658.92 586.00 201.82
2013-06-29 1,020.94 186.00 312.13
2013-03-30 1,023.19 186.00 397.56
2012-12-29 985.48 186.00 382.24
2012-09-29 933.44 186.00 254.32
  • Carter's's level of debt (73.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (80.4% vs 73.6% today).
  • Debt is well covered by operating cash flow (52.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11x coverage).
X
Financial health checks
We assess Carter's's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Carter's has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.17%
Current annual income from Carter's dividends. Estimated to be 2.38% next year.
If you bought $2,000 of Carter's shares you are expected to receive $43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Carter's's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Carter's's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CRI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Luxury Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CRI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.71 1.00
2022-12-31 2.51 1.00
2021-12-31 2.40 5.00
2020-12-31 2.13 7.00
2019-12-31 2.00 7.00
NYSE:CRI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 2.000 2.171
2019-04-30 2.000 2.001
2018-11-15 1.800 1.996
2018-08-16 1.800 1.843
2018-05-17 1.800 1.629
2018-02-27 1.800 1.680
2017-11-08 1.480 1.295
2017-08-17 1.480 1.596
2017-05-17 1.480 1.711
2017-04-27 1.480 1.631
2017-02-23 1.480 1.654
2016-11-10 1.320 1.509
2016-08-18 1.320 1.450
2016-05-11 1.320 1.276
2016-04-28 1.320 1.266
2016-02-26 1.320 1.281
2016-02-25 1.320 1.317
2015-11-12 0.880 0.978
2015-08-20 0.880 0.948
2015-05-07 0.880 0.851
2015-02-26 0.880 0.947
2014-11-13 0.760 0.916
2014-08-21 0.760 0.951
2014-05-15 0.760 1.043
2014-04-28 0.760 1.040
2013-11-14 0.640 0.891
2013-08-22 0.640 0.879
2013-05-09 0.640 0.891

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Carter's has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Carter's only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Carter's's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Carter's's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Carter's afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Carter's has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Casey
COMPENSATION $7,260,036
AGE 58
TENURE AS CEO 10.9 years
CEO Bio

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 has been the Chief Executive Officer of The William Carter Company since August 2008. He served as the Chief Financial Officer and Executive Vice President of The William Carter Company from March 2003 to August 2008. He served as an Executive Vice President of Carter's, Inc., since March 2003, Chief Financial Officer from 1998 to August 1, 2008, Senior Vice President since 1998, Principal Accounting Officer until August 1, 2008 and also served as its Secretary. He joined The William Carter Company, in 1993 as Vice President of Finance and served as its Senior Vice President of Finance since 1997. He served as a Senior Manager of PricewaterhouseCoopers LLP since 1982 till 1993. He has been the Chairman and Director of Carter's, Inc. since December 2009 and August 7, 2008 respectively. Mr. Casey has been the Chairman and Chief Executive Officer of The William Carter Company since August 2008. He serves as a Director of National Vision, Inc. He served as an Independent Director at The Fresh Market, Inc. from May 1, 2015 to 2016. Mr. Casey holds a B.S. in Business Administration from Bryant University.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mike's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Carter's management team in years:

5.5
Average Tenure
52
Average Age
  • The average tenure for the Carter's management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Casey

TITLE
Chairman & CEO
COMPENSATION
$7M
AGE
58
TENURE
10.9 yrs

Brian Lynch

TITLE
President
COMPENSATION
$2M
AGE
56
TENURE
6.6 yrs

Richard Westenberger

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
50
TENURE
10.5 yrs

William Foglesong

TITLE
Executive Vice President of Retail & Marketing
COMPENSATION
$2M
AGE
49
TENURE
9.5 yrs

Scott Duggan

TITLE
Senior VP of Legal & Corporate Affairs
AGE
53
TENURE
0.5 yrs

Julie D'Emilio

TITLE
Executive Vice President of Sales
AGE
52
TENURE
3.5 yrs

Jill Wilson

TITLE
Senior Vice President of Human Resources & Talent Development
AGE
52
TENURE
10.5 yrs

Peter Smith

TITLE
Executive Vice President of Supply Chain
COMPENSATION
$1M
AGE
58
TENURE
4.5 yrs

Patrick Moore

TITLE
Executive Vice President of Strategy & Business Development
AGE
49
TENURE
2.5 yrs

Kendra Krugman

TITLE
Executive Vice President of Merchandising & Design
AGE
41
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the Carter's board of directors in years:

9.7
Average Tenure
63.5
Average Age
  • The tenure for the Carter's board of directors is about average.
Board of Directors

Mike Casey

TITLE
Chairman & CEO
COMPENSATION
$7M
AGE
58
TENURE
9.9 yrs

A. Cleverly

TITLE
Independent Director
COMPENSATION
$276K
AGE
73
TENURE
11.3 yrs

William Montgoris

TITLE
Independent Director
COMPENSATION
$246K
AGE
73
TENURE
11.9 yrs

Amy Brinkley

TITLE
Independent Director
COMPENSATION
$272K
AGE
63
TENURE
9.4 yrs

Tom Whiddon

TITLE
Lead Independent Director
COMPENSATION
$284K
AGE
66

David Pulver

TITLE
Independent Director
COMPENSATION
$277K
AGE
78
TENURE
17.5 yrs

Jevin Eagle

TITLE
Independent Director
COMPENSATION
$248K
AGE
52
TENURE
9 yrs

Giusy Buonfantino

TITLE
Director
COMPENSATION
$244K
AGE
51
TENURE
3.1 yrs

Mark Hipp

TITLE
Director
COMPENSATION
$401K
AGE
57
TENURE
1.4 yrs

Gretchen Price

TITLE
Director
AGE
64
Who owns this company?
Recent Insider Trading
  • Carter's individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. May 19 Sell Jill Wilson Individual 03. May 19 03. May 19 -2,843 $108.38 $-308,124
04. Mar 19 Sell Amy Brinkley Individual 04. Mar 19 04. Mar 19 -2,475 $97.94 $-238,684
07. Nov 18 Sell Jill Wilson Individual 07. Nov 18 07. Nov 18 -2,835 $96.27 $-272,925
23. Aug 18 Sell Jevin Eagle Individual 22. Aug 18 22. Aug 18 -5,000 $109.10 $-545,500
01. Aug 18 Sell A. Cleverly Individual 30. Jul 18 30. Jul 18 -5,250 $103.45 $-543,113
X
Management checks
We assess Carter's's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Carter's has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Should Investors React To Carter's, Inc.'s (NYSE:CRI) CEO Pay?

See our latest analysis for Carter's How Does Mike Casey's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m. … Thus we can conclude that Mike Casey receives more in total compensation than the median of a group of companies in the same market, and of similar size to Carter's, Inc..

Simply Wall St -

Does The Carter's, Inc. (NYSE:CRI) Share Price Fall With The Market?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility.

Simply Wall St -

How To Gain With Carter's, Inc. (NYSE:CRI)

This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Carter's as a long-term hold. … Next Steps: Carter's makes for a robust long-term investment based on its scale, financial health and track record. … We aim to bring you long-term focused research analysis driven by fundamental data.

Simply Wall St -

Will Carter's, Inc.'s (NYSE:CRI) Earnings Grow In The Year Ahead?

Looking at Carter's, Inc.'s (NYSE:CRI) earnings update in March 2019, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 8.9% next year against the higher past 5-year average growth rate of 11%. … To get an idea of the overall earnings growth trend for CRI, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … NYSE:CRI Past and Future Earnings, June 25th 2019 This results in an annual growth rate of 3.7% based on the most recent earnings level of US$280m to the final forecast of US$326m by 2022.

Simply Wall St -

Carter's, Inc.'s (NYSE:CRI) Earnings Dropped -8.3%, Did Its Industry Show Weakness Too?

Today I will examine Carter's, Inc.'s (NYSE:CRI) latest earnings update (30 March 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of CRI's industry performed. … View our latest analysis for Carter's How Did CRI's Recent Performance Stack Up Against Its Past? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 11%, indicating the rate at which CRI is growing has slowed down.

Simply Wall St -

Is Carter's, Inc.'s (NYSE:CRI) 32% ROE Better Than Average?

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.32 in profit. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Carter's: 32% = US$272m ÷ US$849m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Are Investors Undervaluing Carter's, Inc. (NYSE:CRI) By 27%?

(NYSE:CRI) by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $338.03 $303.27 $302.50 $352.00 $358.00 $365.17 $373.28 $382.14 $391.62 $401.63 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x2 Analyst x1 Analyst x1 Est @ 2% Est @ 2.22% Est @ 2.37% Est @ 2.48% Est @ 2.56% Present Value ($, Millions) Discounted @ 8.16% $312.53 $259.22 $239.06 $257.19 $241.83 $228.06 $215.53 $204.00 $193.29 $183.27 Present Value of 10-year Cash Flow (PVCF)= $2.33b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.2%.

Simply Wall St -

A Close Look At Carter's, Inc.’s (NYSE:CRI) 23% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Does Carter's, Inc.'s (NYSE:CRI) Debt Level Pose A Problem?

CRI’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further. … Does CRI Produce Much Cash Relative To Its Debt?

Simply Wall St -

Did Carter's, Inc. (NYSE:CRI) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Carter's, Inc. … Carter's Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Carter's shares, than buying

Simply Wall St -

Company Info

Description

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, Child of Mine, Just One You, Precious Firsts, Precious Baby, Simple Joys, OshKosh B'gosh, Skip Hop, and other brands. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International. Its Carter's products include baby products, such as bodysuits, pants, dresses, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers; play clothes comprising knit and woven cotton apparel; sleepwear products consisting of pajamas in cotton, fleece, and ploy-jersey; and other products, including bedding and swimwear products, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry and outerwear goods, paper goods, socks, and toys. The company’s OshKosh brand products comprise playclothes that include denim apparel, overalls, woven bottoms, knit tops, and bodysuits for sizes newborn to 14. It also offers baby, sleepwear, outerwear, footwear, hosiery, and accessories under the OshKosh brand. In addition, the company provides products for playtime, travel, mealtime, bathtime, and homegear, as well as kid’s bags and diaper bags under the Skip Hop brand. As of December 29, 2018, it operated 844 stores in the United States, 188 stores in Canada, and 42 stores in Mexico, as well as approximately 17,000 wholesale stores, including department stores, national chain stores, specialty stores, and discount retailers in the United States. The company also sells its products through e-commerce sites in the United States, Canada, and China, as well as other international wholesale accounts and licensees. The company was founded in 1865 and is headquartered in Atlanta, Georgia.

Details
Name: Carter's, Inc.
CRI
Exchange: NYSE
Founded: 1865
$4,169,629,113
45,209,033
Website: http://www.carters.com
Address: Carter's, Inc.
Phipps Tower,
Suite 1800,
Atlanta,
Georgia, 30326,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CRI Common Stock New York Stock Exchange US USD 24. Oct 2003
DB HCH Common Stock Deutsche Boerse AG DE EUR 24. Oct 2003
Number of employees
Current staff
Staff numbers
21,000
Carter's employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:51
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.