Carter's, Inc.

Valuation Analysis

About the Company

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 t

Carter's, Inc. Stock at a Glance

Carter's, Inc. (CRI) is currently trading at $42.79 with a market capitalization of $1.6B. The trailing P/E ratio stands at 17.18x, with a forward P/E of 11.85x. The 52-week range spans from $23.38 to $44.44; the current price is 3.7% below the yearly high. Year-over-year revenue growth stands at +8.1%. The net profit margin stands at 3.07%.

💰 Dividend

Carter's, Inc. pays an annual dividend of $1.00 per share, representing a yield of 2.34%. The payout ratio stands at 40.16%.

📊 Analyst Rating

6 analysts rate Carter's, Inc. (CRI) on consensus: None. The average price target is $40.67, implying -4.96% from the current price. Analyst price targets range from $30.00 to $53.00.

Carter's, Inc.: The Investment Case in Detail

Carter's, Inc. (CRI) operates in the Consumer Cyclical — specifically Apparel Retail — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

With a net margin of just 3.07%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 11.04% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

What to Watch Next

• The forward P/E of 11.85x is meaningfully below the trailing 17.18x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 92.2% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (11.04%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Carter's, Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.