(CRI) Carter’s - Overview
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NYSE (USA) | Market Cap: 1.368m USD | Total Return: 18.6% in 12m
Avg Turnover: 35.8M
EPS Trend: -81.5%
Qual. Beats: 2
Rev. Trend: -55.8%
Qual. Beats: 1
Warnings
Choppy
Tailwinds
Idiosyncratic Leader, Confidence
Carter’s, Inc. (CRI) is a leading designer and multichannel retailer of apparel and accessories for babies and young children. The company operates through U.S. Retail, U.S. Wholesale, and International segments, leveraging a brand portfolio that includes Carter’s, OshKosh Bgosh, and Skip Hop. Its distribution network spans company-owned stores, e-commerce platforms, and major wholesale partners such as department stores and national chains.
The childrenswear market is characterized by non-discretionary demand, as physical growth necessitates frequent replacement cycles regardless of broader economic conditions. Carter’s utilizes a high-volume business model, often securing exclusive sub-brands for mass-market retailers to capture diverse consumer price points. For deeper insights into these competitive dynamics, consider exploring the data available on ValueRay.
Founded in 1865 and headquartered in Atlanta, Georgia, the company has expanded its product range beyond basic apparel to include travel gear, toys, and home essentials. This diversification allows the firm to maintain a presence across multiple stages of early childhood development.
- U.S. birth rate fluctuations impact long-term demand for infant apparel
- Wholesale partnerships with major retailers drive high-volume revenue growth
- Cotton price volatility and supply chain costs pressure operating margins
- Consumer discretionary spending shifts affect premium childrenswear sales volume
- E-commerce expansion and digital sales mix influence retail segment profitability
| Net Income: 90.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -4.37 > 1.0 |
| NWC/Revenue: 26.38% < 20% (prev 22.74%; Δ 3.64% < -1%) |
| CFO/TA 0.07 > 3% & CFO 177.4m > Net Income 90.6m |
| Net Debt (155.4m) to EBITDA (198.4m): 0.78 < 3 |
| Current Ratio: 2.80 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.4m) vs 12m ago 0.40% < -2% |
| Gross Margin: 44.66% > 18% (prev 0.48%; Δ 4.42k% > 0.5%) |
| Asset Turnover: 122.5% > 50% (prev 120.6%; Δ 1.89% > 0%) |
| Interest Coverage Ratio: 3.74 > 6 (EBITDA TTM 198.4m / Interest Expense TTM 38.2m) |
| A: 0.31 (Total Current Assets 1.21b - Total Current Liabilities 433.4m) / Total Assets 2.48b |
| B: 0.38 (Retained Earnings 934.6m / Total Assets 2.48b) |
| C: 0.06 (EBIT TTM 142.7m / Avg Total Assets 2.41b) |
| D: 0.58 (Book Value of Equity 908.2m / Total Liabilities 1.56b) |
| Altman-Z'' = 4.29 = AA |
| DSRI: 0.92 (Receivables 196.6m/203.9m, Revenue 2.95b/2.81b) |
| GMI: 1.07 (GM 44.66% / 47.68%) |
| AQI: 0.90 (AQ_t 0.21 / AQ_t-1 0.23) |
| SGI: 1.05 (Revenue 2.95b / 2.81b) |
| TATA: -0.03 (NI 90.6m - CFO 177.4m) / TA 2.48b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 37.23 with a total of 823,800 shares traded.
Over the past week, the price has changed by +11.27%,
over one month by -2.67%,
over three months by -10.54% and
over the past year by +18.61%.
Carter’s has received a consensus analysts rating of 2.33. Therefore, it is recommended to sell CRI.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 40.7 | 9.2% |
P/E Trailing = 14.9036
P/E Forward = 15.4083
P/S = 0.4636
P/B = 1.4185
P/EG = 2.0126
Revenue TTM = 2.95b USD
EBIT TTM = 142.7m USD
EBITDA TTM = 198.4m USD
Long Term Debt = 567.5m USD (from longTermDebt, last quarter)
Short Term Debt = 133.4m USD (from shortTermDebt, last quarter)
Debt = 628.8m USD (from shortLongTermDebtTotal, last quarter) (leases 628.8m already included)
Net Debt = 155.4m USD (calculated: Debt 628.8m - CCE 473.4m)
Enterprise Value = 1.52b USD (1.37b + Debt 628.8m - CCE 473.4m)
Interest Coverage Ratio = 3.74 (Ebit TTM 142.7m / Interest Expense TTM 38.2m)
EV/FCF = 11.98x (Enterprise Value 1.52b / FCF TTM 127.1m)
FCF Yield = 8.34% (FCF TTM 127.1m / Enterprise Value 1.52b)
FCF Margin = 4.31% (FCF TTM 127.1m / Revenue TTM 2.95b)
Net Margin = 3.07% (Net Income TTM 90.6m / Revenue TTM 2.95b)
Gross Margin = 44.66% ((Revenue TTM 2.95b - Cost of Revenue TTM 1.63b) / Revenue TTM)
Gross Margin QoQ = 43.15% (prev 43.24%)
Tobins Q-Ratio = 0.61 (Enterprise Value 1.52b / Total Assets 2.48b)
Interest Expense / Debt = 6.07% (Interest Expense 38.2m / Debt 628.8m)
Taxrate = 27.80% (5.52m / 19.9m)
NOPAT = 103.0m (EBIT 142.7m * (1 - 27.80%))
Current Ratio = 2.80 (Total Current Assets 1.21b / Total Current Liabilities 433.4m)
Debt / Equity = 0.68 (Debt 628.8m / totalStockholderEquity, last quarter 928.5m)
Debt / EBITDA = 0.78 (Net Debt 155.4m / EBITDA 198.4m)
Debt / FCF = 1.22 (Net Debt 155.4m / FCF TTM 127.1m)
Total Stockholder Equity = 893.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.76% (Net Income 90.6m / Total Assets 2.48b)
RoE = 10.14% (Net Income TTM 90.6m / Total Stockholder Equity 893.0m)
RoCE = 9.77% (EBIT 142.7m / Capital Employed (Equity 893.0m + L.T.Debt 567.5m))
RoIC = 6.02% (NOPAT 103.0m / Invested Capital 1.71b)
WACC = 7.66% (E(1.37b)/V(2.00b) * Re(9.17%) + D(628.8m)/V(2.00b) * Rd(6.07%) * (1-Tc(0.28)))
Discount Rate = 9.17% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -21.48 | Cagr: -0.68%
[DCF] Terminal Value 73.10% ; FCFF base≈164.7m ; Y1≈144.5m ; Y5≈116.7m
[DCF] Fair Price = 46.62 (EV 1.87b - Net Debt 155.4m = Equity 1.72b / Shares 36.9m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -81.54 | EPS CAGR: -19.69% | SUE: 1.16 | # QB: 2
Revenue Correlation: -55.84 | Revenue CAGR: -1.48% | SUE: 1.51 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.06 | Chg30d=+141.00% | Revisions=+60% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.85 | Chg30d=-6.48% | Revisions=-20% | Analysts=6
EPS current Year (2026-12-31): EPS=3.22 | Chg30d=+5.38% | Revisions=+64% | GrowthEPS=-7.1% | GrowthRev=+4.4%
EPS next Year (2027-12-31): EPS=3.61 | Chg30d=+1.43% | Revisions=+45% | GrowthEPS=+12.1% | GrowthRev=+1.2%
[Analyst] Revisions Ratio: +64%