Cra International, Inc.
CRAI
Services-Legal Services
Mkt Cap
$658.8MPE
18.46Debt
-Cash
$27.6MEV
-FCF
$57.29MP/E Ratio
18.46Debt
-Cash
$27.6MEV
-FCF
$57.29MCRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, new product pricing strategies, valuation of intellectual property and other assets, assessment of competitors' actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.
Sector
DCF
Discounted Cash Flow Valuation of Cra International, Inc.
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $57.29M | $66.84M | $77.12M | $87.99M | $99.24M | $110.6M | $121.9M | $132.8M | $142.8M | $151.8M | $159.4M | $1.594B |
| DCF | $58.12M | $58.32M | $57.85M | $56.74M | $55.01M | $52.71M | $49.91M | $46.69M | $43.16M | $39.41M | $394.1M | |
| Value | $912M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 23%
Earnings Stability 80%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 01-2015 | 01-2016 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 01-2021 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 4.4% | 2.1% | 4% | 2% | 5.4% | 4.6% | 4.8% | 7.3% | 7.4% | 5.9% |
| ROA | 7.6% | 4% | 6.8% | 4.4% | 7.8% | 5.5% | 6.2% | 10% | 11% | 9.6% |
| ROE | 6.2% | 3% | 6.2% | 3.7% | 11% | 10% | 12% | 20% | 21% | 17% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +5.25%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.94%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +7.43%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.11%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +13%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +3.22%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 01-2015 | 01-2016 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 01-2021 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 0.03 | - | - | - | - | - | - | - | - |
| Debt Equity | - | 0.00 | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 70% | 100% | 100% | 100% | 100% | 100% | 70% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.70.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 01-2016 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 10% | 9.8% | 9.4% | 4.4% | 0.33% |
| Net Income | 32% | 42% | 28% | 5.1% | 2.9% |
| Stockholders Equity | -0.041% | 0.38% | 2.2% | 2.6% | 0.73% |
| FCF | 36% | -10% | 24% | -71% | -37% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +9.81%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.33%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +41.93%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +2.89%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +0.38%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.73%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -10.01%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -37.28%.