NYSE:CRI

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Carter's's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.2%

CRI

3.1%

US Luxury

1.8%

US Market


1 Year Return

1.1%

CRI

12.0%

US Luxury

7.3%

US Market

Return vs Industry: CRI underperformed the US Luxury industry which returned 12% over the past year.

Return vs Market: CRI underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

CRIIndustryMarket
7 Day5.2%3.1%1.8%
30 Day8.4%5.7%-0.7%
90 Day7.0%4.0%0.06%
1 Year3.3%1.1%14.4%12.0%9.7%7.3%
3 Year19.2%13.0%54.9%48.0%46.3%36.9%
5 Year39.5%29.3%53.5%43.5%64.5%46.5%

Price Volatility Vs. Market

How volatile is Carter's's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Carter's undervalued compared to its fair value and its price relative to the market?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CRI ($97.12) is trading below our estimate of fair value ($126.31)

Significantly Undervalued: CRI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CRI is good value based on its PE Ratio (15.8x) compared to the Luxury industry average (16.9x).

PE vs Market: CRI is good value based on its PE Ratio (15.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CRI is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: CRI is overvalued based on its PB Ratio (5.3x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

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

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRI's forecast earnings growth (3.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CRI's earnings (3.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CRI's revenue (2.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CRI's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CRI's Return on Equity is forecast to be high in 3 years time (33.5%)


Next Steps

Past Performance

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

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CRI's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: CRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRI had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Luxury industry average (23.9%).


Return on Equity

High ROE: CRI's Return on Equity (33.9%) is considered high.


Return on Assets

ROA vs Industry: CRI has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: CRI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Carter's's financial position?


Financial Position Analysis

Short Term Liabilities: CRI's short term assets ($1.0B) exceeds its short term liabilities ($473.1M)

Long Term Liabilities: CRI's short term assets (1.0B) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: CRI's debt to equity ratio (73%) is considered high

Reducing Debt: CRI's debt to equity ratio has reduced from 81.3% to 73% over the past 5 years.

Debt Coverage: CRI's debt is well covered by operating cash flow (59.2%).

Interest Coverage: CRI's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Inventory Level: CRI has a high level of physical assets or inventory.

Debt Coverage by Assets: CRI's debt is covered by short term assets (assets are 1.722440x debt).


Next Steps

Dividend

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

2.06%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.5%markettop25%3.7%industryaverage1.4%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CRI's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CRI's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, CRI has been paying a dividend for less than 10 years.

Growing Dividend: CRI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), CRI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRI's dividends in 3 years are forecast to be well covered by earnings (30.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Mike Casey (58yo)

11.2yrs

Tenure

US$7,260,036

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 has been the ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD7.26M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

5.8yrs

Average Tenure

52yo

Average Age

Experienced Management: CRI's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CRI's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: CRI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$119,94304 Sep 19
Amy Brinkley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,298
Max PriceUS$92.41
SellUS$308,12407 May 19
Jill Wilson
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources & Talent Development
Shares2,843
Max PriceUS$108.38
SellUS$238,68404 Mar 19
Amy Brinkley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,475
Max PriceUS$97.94
SellUS$272,92507 Nov 18
Jill Wilson
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources & Talent Development
Shares2,835
Max PriceUS$96.27

Ownership Breakdown


Management Team

  • Mike Casey (58yo)

    Chairman & CEO

    • Tenure: 11.2yrs
    • Compensation: US$7.26m
  • Richard Westenberger (50yo)

    Executive VP & CFO

    • Tenure: 10.8yrs
    • Compensation: US$1.90m
  • Brian Lynch (56yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.20m
  • Jill Wilson (52yo)

    Senior Vice President of Human Resources & Talent Development

    • Tenure: 10.8yrs
  • Scott Duggan (53yo)

    Senior VP of Legal & Corporate Affairs

    • Tenure: 0.8yrs
  • William Foglesong (49yo)

    Executive Vice President of Retail & Marketing

    • Tenure: 9.8yrs
    • Compensation: US$1.58m
  • Patrick Moore (49yo)

    Executive Vice President of Strategy & Business Development

    • Tenure: 2.8yrs
  • Julie D'Emilio (52yo)

    Executive Vice President of Sales

    • Tenure: 3.8yrs
  • Peter Smith (58yo)

    Executive Vice President of Supply Chain

    • Tenure: 4.8yrs
    • Compensation: US$1.45m
  • Kendra Krugman (41yo)

    Executive Vice President of Merchandising & Design

    • Tenure: 3.8yrs

Board Members

  • Mike Casey (58yo)

    Chairman & CEO

    • Tenure: 11.2yrs
    • Compensation: US$7.26m
  • A. Cleverly (73yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$275.57k
  • Tom Whiddon (66yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$283.82k
  • Gretchen Price (64yo)

    Director

    • Tenure: 0.3yrs
  • David Pulver (78yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$276.82k
  • Amy Brinkley (63yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$271.57k
  • Jevin Eagle (52yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$247.57k
  • William Montgoris (73yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$245.57k
  • Mark Hipp (57yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$401.21k
  • Giusy Buonfantino (51yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$243.57k

Company Information

Carter's, Inc.'s company bio, 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
  • Market Cap: US$4.345b
  • Shares outstanding: 44.74m
  • Website: https://www.carters.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2003
HCHDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2003

Biography

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'g ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:55
End of Day Share Price2019/10/17 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.