Carter's Inc. (CRI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+268.5%

$117.64

vs $31.93 price

Levered DCF

$26.82

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.9

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.82×	10.63×	12×	11.77×	12.93×	37.48×	18.56×	13.36×
P/B	1.27×	2.26×	3.24×	3.64×	4.56×	4.34×	5.52×	4.33×
P/S	0.41×	0.68×	0.93×	0.9×	1.24×	1.35×	1.38×	1.09×
EV / EBITDA	9.35×	7.72×	8.67×	9.1×	8.3×	14.27×	13.13×	8.73×
Gross margin	45.4%	48.0%	47.4%	45.8%	47.7%	43.4%	42.9%	43.3%
Operating margin	5.0%	9.0%	11.0%	11.8%	14.3%	6.3%	10.6%	11.3%
Net margin	3.2%	6.5%	7.9%	7.8%	9.7%	3.6%	7.5%	8.1%
Current ratio	2.51×	2.25×	2.15×	2.25×	2.65×	2.46×	2.33×	3.19×
Debt / equity	1.31×	1.32×	1.28×	1.48×	1.65×	1.84×	1.61×	0.68×
Interest coverage	4.21×	8.13×	9.52×	8.86×	8.24×	3.39×	9.89×	11.32×
Dividend yield	4.8%	6.0%	4.1%	4.1%	1.4%	0.6%	1.8%	2.2%
Payout ratio	61.4%	62.6%	48.2%	47.2%	17.7%	23.9%	34.0%	29.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.9%	21.7%	27.5%	31.4%	35.8%	11.7%	30.0%	32.4%
Return on invested capital	5.3%	10.0%	12.4%	14.6%	14.8%	5.5%	12.3%	17.9%
Return on assets	3.6%	7.6%	9.8%	10.2%	10.7%	3.2%	9.6%	13.7%
Free cash flow yield	5.8%	12.5%	17.1%	1.7%	5.3%	13.7%	6.7%	7.8%
Earnings yield	7.8%	9.6%	8.5%	8.6%	7.8%	2.7%	5.4%	7.5%
Enterprise value	$1.9B	$2.7B	$3.5B	$3.9B	$4.9B	$4.7B	$6.1B	$4.2B
Net debt / EBITDA	3.57×	2.09×	1.82×	2.28×	0.98×	1.91×	2.61×	0.88×
Cash conversion cycle (days)	94	88	92	123	72	50	101	97