NYSE:CRI

Stock Analysis Report

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Executive Summary

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, Precious Baby, Little Planet, and other brands in the United States and internationally.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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

Stable Share Price: CRI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

CRI

6.1%

US Luxury

2.0%

US Market


1 Year Return

4.2%

CRI

3.2%

US Luxury

7.1%

US Market

Return vs Industry: CRI exceeded the US Luxury industry which returned 3.2% over the past year.

Return vs Market: CRI underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

CRIIndustryMarket
7 Day7.1%6.1%2.0%
30 Day10.5%9.8%6.0%
90 Day-2.8%0.8%-0.05%
1 Year6.0%4.2%4.5%3.2%9.5%7.1%
3 Year11.7%5.9%54.4%46.9%30.7%22.1%
5 Year-7.8%-14.9%31.7%23.0%55.6%38.0%

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?

26.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRI ($88.87) is trading above our estimate of fair value ($29.5)

Significantly Below Fair Value: CRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CRI is poor value based on its PE Ratio (26.4x) compared to the Luxury industry average (14.4x).

PE vs Market: CRI is poor value based on its PE Ratio (26.4x) compared to the US market (15.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CRI is overvalued based on its PB Ratio (5.4x) compared to the US Luxury industry average (0.9x).


Next Steps

Future Growth

How is Carter's forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRI's forecast earnings growth (27.4% per year) is above the savings rate (2.2%).

Earnings vs Market: CRI's earnings (27.4% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CRI's revenue (4.5% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: CRI's revenue (4.5% 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 (25.4%)


Next Steps

Past Performance

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

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRI has a large one-off loss of $76.7M impacting its March 28 2020 financial results.

Growing Profit Margin: CRI's current net profit margins (4.3%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: CRI's earnings have grown by 2.5% 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 (-45.5%) over the past year, making it difficult to compare to the Luxury industry average (-7.9%).


Return on Equity

High ROE: Whilst CRI's Return on Equity (21.04%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Carter's's financial position?


Financial Position Analysis

Short Term Liabilities: CRI's short term assets ($1.6B) exceed its short term liabilities ($427.7M).

Long Term Liabilities: CRI's short term assets ($1.6B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: CRI's debt to equity ratio (173%) is considered high.

Reducing Debt: CRI's debt to equity ratio has increased from 72.9% to 173% over the past 5 years.

Debt Coverage: CRI's debt is well covered by operating cash flow (27.1%).

Interest Coverage: CRI's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.80%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CRI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CRI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Mike Casey (58yo)

11.75yrs

Tenure

US$7,627,912

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. He serves as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD7.63M) is about average for companies of similar size in the US market ($USD5.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Casey
Chairman & CEO11.75yrsUS$7.63m1.03% $40.0m
Brian Lynch
President7.42yrsUS$2.38m0.15% $6.0m
Richard Westenberger
Executive VP & CFO11.33yrsUS$1.75m0.15% $5.9m
Peter Smith
Executive Vice President of Supply Chain5.33yrsUS$1.37m0.050% $1.9m
Patrick Moore
Executive Vice President of North America Retail3.33yrsUS$1.96m0.052% $2.0m
Benjamin Pivar
Senior VP & Chief Information Officer2.33yrsno datano data
Scott Duggan
Senior VP of Legal & Corporate Affairs1.33yrsno data0.012% $482.5k
Julie D'Emilio
Executive Vice President of Sales4.33yrsno data0.056% $2.2m
Jeffrey Jenkins
Executive Vice President of Global Marketing1.33yrsno datano data
Jill Wilson
Senior Vice President of Human Resources & Talent Development11.33yrsno data0.033% $1.3m

4.8yrs

Average Tenure

52yo

Average Age

Experienced Management: CRI's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Casey
Chairman & CEO11.75yrsUS$7.63m1.03% $40.0m
A. Cleverly
Independent Director12.17yrsUS$267.06k0.022% $854.5k
Thomas Whiddon
Lead Independent Directorno dataUS$242.56k0.13% $5.1m
Gretchen Price
Independent Director0.83yrUS$341.68k0.011% $433.6k
David Pulver
Independent Director18.33yrsUS$282.06k0.16% $6.1m
Amy Brinkley
Independent Director10.25yrsUS$271.06k0.039% $1.5m
Jevin Eagle
Independent Director9.83yrsUS$247.06k0.023% $873.5k
William Montgoris
Independent Director12.75yrsUS$281.56k0.080% $3.1m
Mark Hipp
Independent Director2.25yrsUS$244.06k0.014% $551.1k
Giuseppina Buonfantino
Independent Director3.92yrsUS$240.06k0.020% $782.4k

10.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CRI's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$3.875b
  • Shares outstanding: 43.61m
  • 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
CRI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2003

Biography

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, Precious Baby, Little Planet, and other brands in the United States and internationally. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International. Its Carter's products include babies and young children products, such as bodysuits, pants, dresses, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers; and OshKosh brand products comprise playclothes that include tops, overalls, jeans, sweaters and hoodies, shorts, shortalls, leggings and dresses, pants, graphic tees, and outerwear. The company also provides products for playtime, travel, mealtime, bathtime, and homegear, as well as kid’s bags and diaper bags under the Skip Hop brand. In addition, it offers bedding, cribs, footwear, gift sets, hair accessories, jewelry, outerwear, paper goods, socks, shoes, diaper bags, swimwear, and toys. The company operates 18,000 wholesale locations, including department stores, national chain stores, specialty stores, and discount retailers. As of February 24, 2020, it operated approximately 1,100 company-operated stores. The company also sells its products through online Websites, carters.com, oshkosh.com, cartersoshkosh.ca, and carters.com.mx, as well as other international wholesale accounts and licensees. Carter's, Inc. was founded in 1865 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 03:45
End of Day Share Price2020/05/27 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


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.