Carter's, Inc. — Earnings Quality Grade F
CRI · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 21 days, change -2 days YoY
AR growth -8.3% vs revenue growth 1.9%
Revenue 1.9%, CFFO -59.1%. Cash follows revenue
Expense Quality
Inventory 8.4% vs COGS 7.1%. Normal
CapEx growth -4.4% vs revenue 1.9%. Normal
SG&A/Gross Profit = 90.4%, exceeds 70%
Gross margin 45.4%, change -2.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.33. Profits backed by cash
FCF $0.1B, FCF/NI = 0.75
Accruals ratio = -1.2%. Low accruals
Cash $0.5B covers only 42% of debt $1.2B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 54% of equity. Over 50%
Debt/EBITDA = 6.0x (>4x). Financial stress
Other assets -44.7% vs revenue 1.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25