CRA International Inc. Common Stock (CRAI)
StalwartFairStock Score: 54/100 — MIXED
Key Financials
| Current Price | $137.75 |
| Market Cap | $988M |
| P/E Ratio | 19.11 |
| ROE | 22.51% |
| Dividend Yield | 1.56% |
| Sector | Industrials |
Strengths
- Generates $84 million in annual free cash flow (8.5% yield on market cap)
- Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- High return on equity of 25.7% demonstrating efficient capital deployment
Concerns
- Trades significantly above Graham Number ($77) with negative 95% margin of safety—limited downside protection
AI Analysis
CRA International Inc. Common Stock is a micro-cap industrials company valued at $988 million. The business generates $752 million in annual revenue with a 1.8% net margin and $84 million in free cash flow. From a quality standpoint, CRA shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.3 in the grey zone. On valuation, the stock is reasonably priced at 18.4x earnings, with trades above its Graham Number with a negative 95% margin. Growth dynamics show revenue growing at 11.6% and profit growth of -12.0%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $84 million in annual free cash flow (8.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer