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

-9.2%

NYSE:CRI

-0.8%

US Luxury

-0.02%

US Market


1 Year Return

-7.7%

NYSE:CRI

-4.3%

US Luxury

1.6%

US Market

CRI underperformed the Luxury industry which returned -4.3% over the past year.

CRI underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

CRIIndustryMarket
7 Day-9.2%-0.8%-0.02%
30 Day-1.4%9.6%2.7%
90 Day-8.4%-1.1%1.4%
1 Year-5.7%-7.7%-2.3%-4.3%3.8%1.6%
3 Year-1.3%-6.4%39.2%33.1%45.2%35.8%
5 Year22.7%13.8%48.3%38.6%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Carter's is poor value based on expected growth next year.


Price Based on Value of Assets

Carter's is overvalued based on assets compared to the US Luxury industry average.


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Carter's's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).

Carter's's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Carter's's revenue growth is positive but not above the United States of America market average.

Carter's's earnings growth is positive but not above the United States of America market average.

Carter's's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Carter's is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

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.


Return on Equity

Carter's has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Carter's used its assets more efficiently than the US Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Carter's's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Carter's's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Carter's's level of debt (73%) 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 (81.3% vs 73% today).

Debt is well covered by operating cash flow (59.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

2.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Carter's's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Carter's's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

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 (3.3x coverage).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Mike Casey (58yo)

11.1yrs

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

Mike's remuneration is higher than average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

52yo

Average Age

The average tenure for the Carter's management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.6yrs

Average Tenure

63.5yo

Average Age

The tenure for the Carter's board of directors is about average.


Insider Trading

Carter's individual 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: 11.1yrs
    • Compensation: US$7.26m
  • Richard Westenberger (50yo)

    Executive VP & CFO

    • Tenure: 10.7yrs
    • 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: 10.7yrs
  • Scott Duggan (53yo)

    Senior VP of Legal & Corporate Affairs

    • Tenure: 0.7yrs
  • William Foglesong (49yo)

    Executive Vice President of Retail & Marketing

    • Tenure: 9.7yrs
    • Compensation: US$1.58m
  • Patrick Moore (49yo)

    Executive Vice President of Strategy & Business Development

    • Tenure: 2.7yrs
  • Julie D'Emilio (52yo)

    Executive Vice President of Sales

    • Tenure: 3.7yrs
  • Peter Smith (58yo)

    Executive Vice President of Supply Chain

    • Tenure: 4.7yrs
    • Compensation: US$1.45m
  • Kendra Krugman (41yo)

    Executive Vice President of Merchandising & Design

    • Tenure: 3.7yrs

Board Members

  • Mike Casey (58yo)

    Chairman & CEO

    • Tenure: 11.1yrs
    • Compensation: US$7.26m
  • A. Cleverly (73yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$275.57k
  • Tom Whiddon (66yo)

    Lead Independent Director

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

    Director

    • Tenure: 0.2yrs
  • David Pulver (78yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$276.82k
  • Amy Brinkley (63yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$271.57k
  • Jevin Eagle (52yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$247.57k
  • William Montgoris (73yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$245.57k
  • Mark Hipp (57yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$401.21k
  • Giusy Buonfantino (51yo)

    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$3.933b
  • 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 Analysis2019/09/19 23:50
End of Day Share Price2019/09/19 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.