Carters Inc

Consumer Discretionary
Apparel
www.carters.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.91B
PE 8
Debt $497.93M
Cash $175.54M
EV $2.23B
FCF $277.63M

Earnings

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Sales & Net Margins

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Earnings	$226.07M
EBIT	$307.59M
ROE	27%
ROA	13%
FCF	$277.63M
Equity	$829.34M
Growth Stability	39%
PE	8.44
PEG	1.28
PB	2.3
P/FCF	6.87
P/S	0.67
Price/Cash	0.09
Debt/Equity	0.6
Debt/FCF	1.79
Net Margins	6%
Gross Margins	48%
Op. Margins	11%
Earnings CAGR	-1%
Sales Growth YoY	-4%
Sales Growth QoQ	34%
Sales CAGR	-1%
FCF CAGR	-2%
Equity CAGR	1%
Earnings Stability	0.01
Earnings Growth YoY	-12%
Earnings Growth QoQ	111%
Earnings CAGR 5Y	7%

Sales CAGR 5Y	-3%
FCF CAGR 5Y	-9%
Equity CAGR 5Y	-2%
Earnings CAGR 3Y	-8%
Sales CAGR 3Y	-8%
FCF CAGR 3Y	102%
Equity CAGR 3Y	-3%
Market Cap	$1.91B
Revenue	$2.84B
Dividend Yield	6%
Payout Ratio	51%
Assets	$2.38B
Total Debt	$497.93M
Cash	$175.54M
Shares Outstanding	35.3M
EV	2.23B
Earnings Score	6%
Moat Score	91%
Safety Score	66%
Final Score	54%
Working Capital	587.4M
Current Ratio	2.21
Gross Profit	$1.37B
Shares Growth 3y	-5%
Equity Growth QoQ	2%
Equity Growth YoY	6%

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.

2024
- 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
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 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 -1%

Stability 1%

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Carters Inc Discounted Cash Flow

Fully customizable DCF calculator online for Carters Inc.

Years

Calculation mode

= $2.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$278M	$272M	$266M	$261M	$255M	$250M	$245M	$239M	$234M	$229M	$225M	$2.2B
DCF		$247M	$220M	$196M	$174M	$155M	$138M	$123M	$109M	$97M	$87M	$866M
Value	$2.4B

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	12/2023	TTM
Net Margins	7%	8%	8%	9%	8%	7%	4%	10%	8%	8%	6%
ROA	-	20%	22%	20%	19%	14%	6%	16%	16%	14%	13%
ROE	-	27%	32%	35%	32%	30%	12%	35%	31%	27%	27%

Bad Net Margins (6.13%)

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	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.86	2.07	2.37	2.03	1.83	1.78	4.3	12.85	1.07	1.79
Debt over Equity	0.74	0.67	0.74	0.72	0.68	0.68	1.05	1.04	0.77	0.59	0.6
Growth Stability	-	-	-	100%	100%	94%	39%	100%	100%	99%	39%

Good Debt/FCF ratio (1.79)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.6)

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	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	4%	6%	6%	2%	2%	-14%	15%	-8%	-8%	-3%
Earnings YoY growth	-	23%	9%	17%	-7%	-7%	-58%	209%	-27%	-7%	7%
Equity YoY growth	-	11%	-10%	9%	1%	1%	7%	1%	-16%	6%	-2%
FCF YoY growth	-	14%	37%	-7%	12%	11%	71%	-59%	-79%	878%	-9%