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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#609
Positioning
Market Dominance
Manufacturing
Apparel
$1.1B
Michael D. Casey
Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, SimpleJoys, Carter's My First Love, little planet, and other brands. Carter's products include babies and young children products, such as bodysuits, pants, dresses, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers. The company operates through three segments: U.S. Retail, US Wholesale, US Retail, and International. As of December 31, 2021, it operated 980 retail stores.
Headcount
15.5K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = CRI ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CRI CARTERS INC | 61 | 65 | 73 | 53 | 67.2x | 22.5x | 2.8% | 1.0% | 46.5% | 2.3% | 0.8% | 21.2% | 7.2% | 58.0x | $1.1B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
CARTERS INC (CRI) receives a "Hold" rating with a composite score of 60.9/100. It ranks #609 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
ATLANTA, Georgia
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for CRI.
View All RatingsROIC 7.9% vs WACC 7.7% (spread +0.1%)
GM 47% vs sector 44%, OM 2% vs sector 3%
Capital turnover 2.43x
Rev growth 21%, 11yr history
Interest coverage 4.1x, Net debt/EBITDA 9.4x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate CARTERS INC (CRI) as a Hold with a composite score of 60.9/100 at a current price of $42.39. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
CARTERS INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 60.9/100 places it at rank #609 in our full universe.
Narrow
Medium
Standard
Undervalued
Gross margins of 47% signal strong pricing power.
Value factor score of 73 suggests attractive pricing.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 67.2x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
CARTERS INC represents a hold based on multi-factor quantitative performance.
Our model assigns CARTERS INC a Hold rating, with a composite score of 60.9/100 and 3 out of 5 stars. Ranked #609 of 7,333 stocks, CRI presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
CRI earns a quality score of 65/100, indicating above-average business quality. The company reports a return on equity of 2.8% (sector avg: -1.9%), gross margins of 46.5% (sector avg: 44.1%), net margins of 0.8% (sector avg: 1.0%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
CRI carries a solid value score of 73/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 67.16x, an EV/EBITDA of 22.46x, a P/B ratio of 1.87x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 47/100, CRI exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 21.2% vs. a sector average of 6.7% and a return on assets of 1.0% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
CRI demonstrates moderate momentum with a score of 53/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 21.2% year-over-year, while a beta of 1.34 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 53/100, CRI exhibits average financial resilience. Key stability metrics include a beta of 1.34 and a debt-to-equity ratio of 58.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 59/100 for CRI suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include above-average market sensitivity (beta: 1.34), elevated leverage (D/E: 58.00x), small-cap liquidity risk. With a $1.1B market cap (small-cap), CARTERS INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
CARTERS INC offers an attractive dividend yield of 7.2%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
CARTERS INC is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #609 of 7,333 overall (92nd percentile). Key comparisons include ROE of 2.8% exceeding the -1.9% sector median and operating margins of 2.3% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While CRI currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Investment (47) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 96% ABOVE SECTOR MEDIAN
ROE 246% BELOW SECTOR MEDIAN
Gross Margin 6% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
ATLANTA, February 23, 2026--Carter’s, Inc. (NYSE:CRI), North America’s largest and most-enduring apparel company exclusively for babies and young children, will report its fourth quarter and fiscal year 2025 results before the market opens on Friday, February 27, 2026.
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