# Carter's Inc. (CRI) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Textiles, Apparel & Luxury Goods. Price $33.55, market value $1.2 billion.

## Valuation
- **P/E (trailing): 6.3×** (5-yr avg 10.9×, 3-yr avg 11.2×). Carter's Inc. trades at 6.3× trailing earnings, well below its own five-year average of 10.9×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 9.2×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.2×**. The shares trade at 1.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.9×**. Enterprise value is 3.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 23.8%** (5-yr avg 9.3%). Free cash flow equals 23.8% of the market value, above its five-year average of 9.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 16.0%**. The inverse of the P/E: 16.0% of the price is earned each year.

## Profitability
- **Gross margin: 48.6%**. Carter's Inc. keeps 48.6% of revenue after the direct cost of what it sells.
- **Operating margin: 9.5%**. 9.5% of revenue is left after running the business.
- **Net margin: 3.2%**. 3.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.9%**. 9.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 22.2%**. Return on all capital, debt included, is 22.2%: comfortably above what that capital costs.
- **Return on assets: 7.6%**. Each dollar of assets produces 7.6% of profit.

## Growth
- **Revenue growth (1 yr): 1.9%** (3-yr -3.4%/yr, 5-yr -0.8%/yr). Revenue grew 1.9% over the last year, against -0.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -50.6%** (3-yr -26.4%/yr, 5-yr 0.2%/yr). Earnings per share fell 50.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 12.7%/yr**. Free cash flow has compounded at 12.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.61**. Debt is 0.61 times equity, moderate leverage.
- **Net debt / EBITDA: 0.2×**. It would take 0.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 2.27**. A Z-score of 2.27 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.98%** ($1.00 per share, trailing). Carter's Inc. yields 2.98%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 61%** (12% of free cash flow). 61% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): 20.9%/yr** (1-yr -51.6%). The dividend has compounded at 20.9% a year over five years, doubling roughly every 3 years at that pace.

## Price and momentum
- **Total return (1 yr): 19.9%** (YTD 4.9%, 3-mo -12.1%). The shares are up 19.9% over twelve months including dividends.
- **From 52-week high: -24.5%** (23.6% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 1.07** (volatility 49%). Beta of 1.07 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CRI · Page: https://foliofundamentals.com/stocks/cri

Not investment advice.