CRA 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.
Discounted Cash Flow Valuation of Cra International, Inc.
In the chart Earnings are multiplied by this value.
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.
The average Net Margin over the past 5 years is +5.25%.
The trend of Net Margin over the past 5 years is +0.94%.
The average ROA over the past 5 years is +7.43%.
The trend of ROA over the past 5 years is +1.11%.
The average ROE over the past 5 years is +13%.
The trend of ROE over the past 5 years is +3.22%.
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.
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at 0.70.
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.
The Revenue CAGR over the past 5 years is +9.81%.
The trend of Revenue growth rate over the past 5 years is +0.33%.
The Earnings CAGR over the past 5 years is +41.93%.
The trend of Earnings growth rate over the past 5 years is +2.89%.
The Equity CAGR over the past 5 years is +0.38%.
The trend of Equity growth rate over the past 5 years is +0.73%.
The FCF CAGR over the past 5 years is -10.01%.
The trend of FCF growth rate over the past 5 years is -37.28%.