Carter’s Stock Fair Value Calculator – Carter’s Experiences Positive Q3 Earnings Growth
October 28, 2023
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Carter’s ($NYSE:CRI) recently announced its third quarter earnings report, and it demonstrated a positive growth. Carter’s is a leading American clothing and accessories company that specializes in providing apparel, accessories and footwear for babies, children and adults. This is a result of an increase in consumer demand for its products and an increase in its online sales. Overall, Carter’s experienced positive third quarter earnings growth due to the increased consumer demand for its products and higher online sales.
This has resulted in higher profits, cost reduction and strong balance sheet performance. With the positive results from the third quarter, Carter’s is well positioned to continue to increase its market share in the apparel and accessories industry.
Earnings
CARTER’S reported impressive earnings in the second quarter of FY2023, with a total revenue of 746.4M USD and a net income of 71.6M USD, indicating a 6.5% growth in total revenue and a 93.7% increase in net income compared to the same period last year. In the past three years, CARTER’S total revenue had steadily increased from 600.2M USD to 746.4M USD. This impressive growth in revenue is a testament to the success of the company’s business strategies and its commitment to providing quality products and services to its customers.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carter’s. More…
| Total Revenues | Net Income | Net Margin |
| 3.03k | 201.75 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carter’s. More…
| Operations | Investing | Financing |
| 391.2 | -50.41 | -399.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carter’s. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.29k | 1.51k | 20.8 |
Key Ratios Snapshot
Some of the financial key ratios for Carter’s are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.0% | 4.8% | 9.8% |
| FCF Margin | ROE | ROA |
| 11.3% | 23.6% | 8.1% |
Market Price
On Friday, Carter’s experienced positive earnings growth as their stock opened at $63.4 and closed at $64.3, up 0.2% from the prior closing price of 64.2. This growth comes as a result of strategic investments in brand building initiatives and innovative digital capabilities. Carter’s has invested in technology, marketing, and product development to enhance customer experience in order to increase its market share.
The company has also strategically expanded its presence in global markets and implemented new store formats to increase profitability. These initiatives have resulted in a steady increase in revenue for the company. Live Quote…
Analysis – Carter’s Stock Fair Value Calculator
At GoodWhale, we have conducted an analysis of CARTER’S wellbeing. After taking into consideration a range of external and internal factors, we have determined that the intrinsic value of CARTER’S share is approximately $108.0. This figure was calculated with the help of our proprietary Valuation Line, a sophisticated process that takes into account both qualitative and quantitative data. Currently, CARTER’S stock is traded at $64.3, which is a 40.5% discount to its intrinsic value. We believe this presents an excellent opportunity for long-term investors who are looking to invest in a quality company at a good price. More…
Peers
The company’s competitors include Children’s Place Inc, Apranga APB, and Boot Barn Holdings Inc.
– Children’s Place Inc ($NASDAQ:PLCE)
Children’s Place Inc is a publicly traded company with a market capitalization of 506.93M as of 2022. The company’s return on equity is 55.72%. Children’s Place Inc is a specialty retailer of children’s apparel and accessories. The company operates through two segments: North America and Europe. Children’s Place Inc offers a variety of merchandise, including clothing, footwear, accessories, and gifts. The company was founded in 1969 and is headquartered in Secaucus, New Jersey.
– Apranga APB ($LTS:0KJF)
As of 2022, Apranga APB has a market cap of 103.12M. The company’s return on equity is 19.95%. Apranga APB is a Lithuanian clothing retail chain. The company was founded in 1989 and is headquartered in Vilnius, Lithuania. Apranga APB operates in Lithuania, Latvia, and Estonia. The company operates a chain of stores under the Apranga and APB brands. Apranga APB offers a range of clothing, footwear, and accessories for men, women, and children.
– Boot Barn Holdings Inc ($NYSE:BOOT)
As of 2022, Boot Barn Holdings Inc has a market cap of 1.71B and a Return on Equity of 23.87%. The company is a retailer of western and work-related footwear, apparel, and accessories for men, women, and children.
Summary
This impressive growth was driven primarily by an increase in net sales, due in part to the company’s continued successful initiatives across multiple channels, including online and retail. Additionally, Carter’s saw a decrease in inventory and an increased gross margin, resulting in higher profits. Overall, these positive results demonstrate the company’s ability to effectively navigate the current challenging market conditions and bode well for future performance.
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