2024-05-02 01:53:49 ET
Summary
- Carter's is the US's leading baby and toddler apparel brand. The company operates in a large retail channel, coupled with wholesale relationships with all major retailers.
- Carter's is an operationally excellent company that dominates a relatively commoditized, stable, and mature market.
- Thanks to high shareholder payback ratios (dividends plus buybacks), it has maintained great returns on capital.
- Given Carter's stability, the company can be valued based on returns on capital compared to P/B ratios. I would recommend purchasing the stock whenever the P/B is below 3.
- Carter's trades at about a P/B of 3, which I consider fair but not an opportunity.
Carter's ( CRI ) is the US's leading baby and toddler apparel brand. The company operates in a large retail channel, coupled with wholesale relationships with all major retailers....
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Carter's Excellent Business Is A Buy At P/B Ratios Below 3