Carter's Inc. Common Stock (CRI)
StalwartFairStock Score: 52/100 — MIXED
Key Financials
| Current Price | $33.46 |
| Market Cap | $1.4B |
| P/E Ratio | 13.44 |
| ROE | 10.2% |
| Dividend Yield | 2.62% |
| Sector | Consumer Cyclical |
Strengths
- Generates $51 million in annual free cash flow (3.6% yield on market cap)
- Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Solid return on equity of 10.3% above cost of capital
- Attractive 2.6% dividend yield providing steady income returns
- Established organization with 15,400 employees providing operational scale
AI Analysis
Carter's Inc. Common Stock is a micro-cap consumer cyclical company valued at $1.4 billion. The business generates $2.9 billion in annual revenue with a 2.2% net margin and $51 million in free cash flow. From a quality standpoint, Carter's shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 1.8 in the grey zone. On valuation, the stock is reasonably priced at 15.1x earnings, with trades above its Graham Number with a negative 0% margin. Growth dynamics show revenue growing at 7.7% and profit growth of 4.4%. The 2.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 52/100 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 $51 million in annual free cash flow (3.6% 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 consumer cyclical 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