Latest Ratios: P/E Ratio 15.4x · EV/EBITDA 11.0x · ROE 10.3%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.2B | $1.9B | $2.7B | $2.9B | $4.4B | $4.1B | $4.9B | $3.8B | $5.7B | $4.4B |
| Enterprise Value | $2.2B | $1.9B | $2.7B | $3.5B | $3.9B | $4.9B | $4.7B | $6.1B | $4.2B | $6.1B | $4.6B |
| P/E Ratio → | 15.37 | 12.82 | 10.63 | 12.00 | 11.77 | 12.96 | 37.63 | 18.69 | 13.49 | 18.83 | 17.01 |
| P/S Ratio | 0.51 | 0.41 | 0.68 | 0.93 | 0.90 | 1.25 | 1.35 | 1.39 | 1.10 | 1.66 | 1.36 |
| P/B Ratio | 1.53 | 1.27 | 2.26 | 3.24 | 3.64 | 4.58 | 4.35 | 5.55 | 4.38 | 6.60 | 5.52 |
| P/FCF | 21.38 | 17.15 | 7.97 | 5.84 | 60.39 | 18.86 | 7.35 | 15.00 | 13.02 | 21.74 | 15.51 |
| P/OCF | 11.99 | 9.62 | 6.47 | 5.18 | 32.80 | 16.23 | 6.94 | 12.62 | 10.69 | 17.16 | 11.79 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.66 | 0.93 | 1.18 | 1.20 | 1.42 | 1.56 | 1.73 | 1.22 | 1.79 | 1.45 |
| EV / EBITDA | 11.01 | 9.55 | 8.48 | 8.96 | 8.70 | 8.35 | 16.59 | 13.02 | 8.79 | 12.09 | 9.27 |
| EV / EBIT | 15.23 | 12.84 | 9.28 | 10.32 | 10.76 | 9.90 | 20.05 | 16.67 | 10.83 | 14.54 | 10.97 |
| EV / FCF | — | 27.71 | 10.93 | 7.40 | 80.58 | 21.38 | 8.48 | 18.70 | 14.47 | 23.43 | 16.51 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.4% | 45.4% | 48.0% | 47.4% | 45.8% | 47.7% | 43.4% | 42.9% | 43.3% | 43.6% | 43.1% |
| Operating Margin | 5.0% | 5.0% | 9.0% | 11.0% | 11.8% | 14.3% | 6.3% | 10.6% | 11.3% | 12.3% | 13.3% |
| Net Profit Margin | 3.2% | 3.2% | 6.5% | 7.9% | 7.8% | 9.7% | 3.6% | 7.5% | 8.1% | 8.9% | 8.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.3% | 10.3% | 21.8% | 28.3% | 28.6% | 36.0% | 12.1% | 30.2% | 32.7% | 36.8% | 31.0% |
| ROA | 3.7% | 3.7% | 7.7% | 9.7% | 8.9% | 10.3% | 3.6% | 11.0% | 13.7% | 15.1% | 13.0% |
| ROIC | 6.7% | 6.7% | 12.1% | 14.5% | 17.2% | 24.1% | 7.8% | 16.5% | 22.7% | 26.6% | 29.8% |
| ROCE | 7.2% | 7.2% | 13.4% | 17.1% | 17.3% | 19.6% | 7.8% | 18.6% | 22.6% | 24.6% | 25.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.31 | 1.31 | 1.32 | 1.28 | 1.48 | 1.65 | 1.84 | 1.61 | 0.68 | 0.72 | 0.74 |
| Debt / EBITDA | 6.09 | 6.09 | 3.61 | 2.79 | 2.66 | 2.65 | 6.09 | 3.03 | 1.23 | 1.22 | 1.16 |
| Net Debt / Equity | — | 0.78 | 0.84 | 0.86 | 1.22 | 0.61 | 0.67 | 1.37 | 0.49 | 0.51 | 0.36 |
| Net Debt / EBITDA | 3.64 | 3.64 | 2.29 | 1.88 | 2.18 | 0.99 | 2.21 | 2.58 | 0.88 | 0.87 | 0.56 |
| Debt / FCF | — | 10.56 | 2.96 | 1.56 | 20.19 | 2.52 | 1.13 | 3.70 | 1.45 | 1.69 | 1.00 |
| Interest Coverage | 4.33 | 4.33 | 9.11 | 9.90 | 8.40 | 8.27 | 4.19 | 9.72 | 11.30 | 13.95 | 15.62 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.51 | 2.51 | 2.25 | 2.15 | 2.25 | 2.65 | 2.46 | 2.33 | 3.19 | 3.10 | 3.81 |
| Quick Ratio | 1.44 | 1.44 | 1.26 | 1.10 | 0.84 | 1.75 | 1.70 | 1.08 | 1.43 | 1.43 | 2.05 |
| Cash Ratio | 0.96 | 0.96 | 0.81 | 0.69 | 0.40 | 1.37 | 1.39 | 0.45 | 0.52 | 0.54 | 1.08 |
| Asset Turnover | — | 1.13 | 1.17 | 1.24 | 1.32 | 1.09 | 0.89 | 1.28 | 1.68 | 1.64 | 1.64 |
| Inventory Turnover | 2.91 | 2.91 | 2.94 | 2.89 | 2.34 | 2.82 | 2.85 | 3.39 | 3.42 | 3.49 | 3.73 |
| Days Sales Outstanding | — | 22.49 | 25.00 | 22.77 | 22.56 | 24.22 | 22.51 | 26.03 | 27.23 | 25.82 | 23.10 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.0% | 4.8% | 6.0% | 4.1% | 4.1% | 1.4% | 0.6% | 1.8% | 2.2% | 1.3% | 1.5% |
| Payout Ratio | 61.4% | 61.4% | 62.6% | 48.2% | 47.2% | 17.7% | 23.9% | 34.0% | 29.7% | 23.4% | 25.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.5% | 7.8% | 9.4% | 8.3% | 8.5% | 7.7% | 2.7% | 5.4% | 7.4% | 5.3% | 5.9% |
| FCF Yield | 4.7% | 5.8% | 12.5% | 17.1% | 1.7% | 5.3% | 13.6% | 6.7% | 7.7% | 4.6% | 6.4% |
| Buyback Yield | 0.0% | 0.0% | 2.6% | 3.7% | 10.3% | 6.9% | 1.1% | 4.0% | 5.1% | 3.3% | 6.9% |
| Total Shareholder Yield | 4.0% | 4.8% | 8.6% | 7.7% | 14.4% | 8.3% | 1.8% | 5.9% | 7.3% | 4.6% | 8.4% |
| Shares Outstanding | — | $35M | $36M | $37M | $39M | $43M | $43M | $45M | $47M | $48M | $50M |
Operating margin compression
According to current market data, Carter's trades at a forward P/E of 13.09, which appears to discount the company's recent revenue stagnation and suggests that investors are pricing in a low-growth, mature retail profile rather than a high-growth consumer brand trajectory relative to historical averages.
The current P/S ratio of 0.55 indicates that the market is assigning a significant discount to the company's revenue base, likely reflecting concerns over the sustainability of its wholesale-heavy model. This valuation level implies that the market remains skeptical of management's ability to drive margin expansion, favoring a defensive stance over growth-oriented pricing.
Based on reported financial statements, Carter's ROIC has experienced a notable decline from 6.1% in 2023Q4 to 1.6% in 2026Q1, signaling that the company is struggling to generate adequate returns on its invested capital as operational costs outpace the growth of its core business segments.
The compression in ROIC suggests that the company's capital allocation, particularly regarding its physical retail footprint, is failing to produce the incremental returns required to justify continued investment. Investors should monitor whether this decay is a structural consequence of the retail environment or a temporary result of inefficient capital deployment in the current cycle.
As reported in recent quarterly filings, the cash conversion cycle has fluctuated significantly, reaching 94 days in 2026Q1, which highlights the inherent difficulty in managing inventory turnover within a seasonal apparel business that relies heavily on wholesale distribution channels to move its product volume.
The elevated days inventory outstanding, which peaked at 173 days in 2024Q2, suggests that the company may be carrying excess stock that necessitates aggressive promotional activity to clear. This inefficiency in working capital management directly contributes to the observed margin volatility and limits the company's ability to optimize its cash flow generation.
Based on the provided balance sheet data, Carter's maintains a healthy debt-to-equity ratio of 0.68 as of 2026Q1, which provides a significant buffer against financial distress despite the company's recent struggles with maintaining consistent operating margins and free cash flow generation throughout the fiscal year.
While the low leverage profile is a positive indicator of financial health, it may also suggest that the company is under-utilizing its balance sheet to drive growth or return capital to shareholders. The interest coverage ratio, while currently adequate, warrants close observation as operating income remains under pressure from rising costs and competitive pricing.
As indicated by industry analysis, the P/E ratio is frequently misapplied to Carter's because it ignores the significant impact of seasonal working capital swings and non-cash inventory adjustments that distort reported earnings, making it a poor proxy for the company's true underlying cash-generating capacity.
Analysts should instead prioritize free cash flow yield or EV/EBITDA, as these metrics better account for the capital-intensive nature of the retail business and the volatility inherent in the wholesale-to-retail inventory cycle. Relying solely on P/E multiples risks overlooking the structural margin pressures that are currently masking the company's true earning power.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying CRI stock.
Carter's, Inc.'s current P/E ratio is 15.4x. The historical average is 19.1x. This places it at the 41th percentile of its historical range.
Carter's, Inc.'s current EV/EBITDA is 11.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Carter's, Inc.'s return on equity (ROE) is 10.3%. The historical average is 18.3%.
Based on historical data, Carter's, Inc. is trading at a P/E of 15.4x. This is at the 41th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Carter's, Inc.'s current dividend yield is 3.99% with a payout ratio of 61.4%.
Carter's, Inc. has 45.4% gross margin and 5.0% operating margin.
Carter's, Inc.'s Debt/EBITDA ratio is 6.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.