CRA International, Inc.
CRA International, Inc. Fundamental Analysis
CRA International, Inc. (CRAI) shows moderate financial fundamentals with a PE ratio of 18.70, profit margin of 7.74%, and ROE of 27.01%. The company generates $0.7B in annual revenue with strong year-over-year growth of 10.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CRAI's fundamental strength across five key dimensions:
Efficiency Score
WeakCRAI struggles to generate sufficient returns from assets.
Valuation Score
ModerateCRAI shows balanced valuation metrics.
Growth Score
ExcellentCRAI delivers strong and consistent growth momentum.
Financial Health Score
ModerateCRAI shows balanced financial health with some risks.
Profitability Score
ModerateCRAI maintains healthy but balanced margins.
Key Financial Metrics
Is CRAI Expensive or Cheap?
P/E Ratio
CRAI trades at 18.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CRAI's PEG of 22.30 indicates potential overvaluation.
Price to Book
The market values CRA International, Inc. at 5.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.81 times EBITDA. This is generally considered low.
How Well Does CRAI Make Money?
Net Profit Margin
For every $100 in sales, CRA International, Inc. keeps $7.74 as profit after all expenses.
Operating Margin
Core operations generate 11.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.01 in profit for every $100 of shareholder equity.
ROA
CRA International, Inc. generates $9.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CRA International, Inc. generates limited operating cash flow of $41.87M, signaling weaker underlying cash strength.
Free Cash Flow
CRA International, Inc. produces free cash flow of $28.45M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.34 in free cash annually.
FCF Yield
CRAI converts 2.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
22.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How CRAI Stacks Against Its Sector Peers
| Metric | CRAI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.70 | 26.71 | Better (Cheaper) |
| ROE | 27.01% | 1311.00% | Weak |
| Net Margin | 7.74% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.96 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.90 | 10.53 | Weak Liquidity |
| ROA | 9.00% | -1537638.00% (disorted) | Weak |
CRAI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CRA International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
159.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
106.07%
Industry Style: Cyclical, Value, Infrastructure
High Growth