Carter's, Inc. (CRI)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Carter's, Inc. trades at USD38.10, which is 34% above the USD25.19 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 41 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 15.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Carter's, Inc.
Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear in the United States and internationally. It operates through three segments: U.S. Retail, U.S. Wholesale, and International. The company's products include babies and young children's products, such as bodysuits, layette essentials, sleep and play, pants, tops and t-shirts, multipiece sets, dresses, and sleepwear; and playclothes, such as denim jeans, overalls, core bottoms, knit tops, t-shirts, and layering pieces. It also provides products for playtime, travel, mealtime, bath time, and home gear, as well as kid's and diaper bags, as well as range of licensed sports and character t-shirts. In addition, the company offers sleepwear, swimwear, outerwear, bedding, accessories, and toys; and toddler apparel and accessories. It sells its products through its retail stores, websites, and mobile app, as well as its wholesale distribution; and distributes its products to wholesale customers, including department stores, national chains, and specialty retailers. The company markets its products under the Carter's, OshKosh B'gosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Little Planet, Otter Avenue, and other brands. Carter's, Inc. was founded in 1865 and is headquartered in Atlanta, Georgia.
CRI passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Super investor ownership
9 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Marshall Wace, MARSHALL WACE, LLP$37.96M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$20.91M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$19.71M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$14.82M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$10.76M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Carter's, Inc. (CRI) undervalued?
Against our discounted cash flow estimate of USD25.19, CRI at USD38.10 is 34% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own CRI?
9 of the institutions we track reported a position in CRI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is CRI's P/E ratio?
CRI trades at 15.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for CRI, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.