Carters Inc

Consumer Discretionary
Apparel
www.carters.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.16B
PE 7
Debt $498.33M
Cash $320.79M
EV $1.33B
FCF $221.20M

Earnings

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Sales & Net Margins

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Earnings	$159.74M
EBIT	$225.80M
ROE	19%
ROA	10%
FCF	$221.20M
Equity	$847.25M
Growth Stability	39%
PE	7.25
PEG	3.76
PB	1.37
P/FCF	5.23
P/S	0.41
Price/Cash	0.28
Debt/Equity	0.59
Debt/FCF	2.25
Net Margins	2%
Gross Margins	48%
Op. Margins	8%
Earnings CAGR	-2%
Sales Growth YoY	-5%
Sales Growth QoQ	-27%
Sales CAGR	-1%
FCF CAGR	-3%
Equity CAGR	1%
Earnings Stability	0.05
Earnings Growth YoY	-59%
Earnings Growth QoQ	-75%
Earnings CAGR 5Y	2%

Sales CAGR 5Y	-3%
FCF CAGR 5Y	-7%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	-7%
Sales CAGR 3Y	-7%
FCF CAGR 3Y	116%
Equity CAGR 3Y	2%
Market Cap	$1.16B
Revenue	$2.81B
Dividend Yield	10%
Payout Ratio	73%
Assets	$2.33B
Total Debt	$498.33M
Cash	$320.79M
Shares Outstanding	35.31M
EV	1.33B
Earnings Score	6%
Moat Score	83%
Safety Score	65%
Final Score	51%
Working Capital	639.66M
Current Ratio	2.56
Gross Profit	$1.34B
Shares Growth 3y	-4%
Equity Growth QoQ	-1%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Carter's Inc makes apparel for babies and children under brand names including Carter's and OshKosh B'gosh. It sells its products through a multi-channel, global business model, which includes retail stores, eCommerce, and wholesale sales channels, as well as retail omnichannel capabilities in the United States and Canada, which enables it to reach a broad range of consumers around the world. The majority of Carter's sales are in the U.S. and through Carter's brand. The company predominantly sources products through contract manufacturers in Asia. It has multiple distribution centers in the U.S., in addition to distribution centers in Canada and Asia that serve international customers.

SEC Filings

Direct access to Carters Inc (CRI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 29
2024
- 10-K Dec 28
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Carters Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Carters Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability 5%

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Carters Inc Discounted Cash Flow

Fully customizable DCF calculator online for Carters Inc.

Years

Calculation mode

= $1.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$221M	$215M	$209M	$204M	$198M	$193M	$187M	$182M	$177M	$172M	$168M	$1.7B
DCF		$196M	$173M	$153M	$135M	$120M	$106M	$93M	$83M	$73M	$65M	$646M
Value	$1.8B

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	8%	8%	9%	8%	7%	4%	10%	8%	8%	6%	2%
ROA	-	22%	20%	19%	14%	6%	16%	16%	14%	10%	10%
ROE	-	32%	35%	32%	30%	12%	35%	31%	27%	21%	19%

Bad Net Margins (2.42%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	2.07	2.37	2.03	1.83	1.78	4.3	12.85	1.07	2.06	2.25
Debt over Equity	0.67	0.74	0.72	0.68	0.68	1.05	1.04	0.77	0.59	0.59	0.59
Growth Stability	-	-	-	100%	94%	39%	100%	100%	99%	67%	39%

Neutral Debt/FCF ratio (2.25)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.59)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (39%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	6%	6%	2%	2%	-14%	15%	-8%	-8%	-3%	-3%
Earnings YoY growth	-	9%	17%	-7%	-7%	-58%	209%	-27%	-7%	-20%	2%
Equity YoY growth	-	-10%	9%	1%	1%	7%	1%	-16%	6%	1%	-3%
FCF YoY growth	-	37%	-7%	12%	11%	71%	-59%	-79%	878%	-48%	-7%