Cra International (CRAI) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 1.12%
• Average Volume (3M): 44.89K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.79
• Revenue Growth: 10.17%
• EPS Growth: 24.74%
• Country: US
• Employees: 946
• Sector: Industrials
• Sector Strength: 70
• Industry: Consulting Services
• EPS (TTM): 6.73
• Shares Outstanding: 6,791,557
• 10 Day Avg. Volume: 53,840
• 30 Day Avg. Volume: 44,889
• PEG Ratio: 0.97
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.74
• Price to Cash Flow (P/CF): 3.80
• P/FCF Ratio: 4.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $217.00
• Price Target Upside: 33.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

CRA International's stock is supported by strong financial performance and a positive earnings call. However, technical analysis indicates potential weaknesses in momentum, and valuation metrics suggest moderate upside potential. The company should focus on improving cash flow to strengthen its financial position further.

Positive Factors

Financial Performance

Strong Q4/24 results showed a 9.2% increase in revenue, surpassing both the company's and market estimates.

Future Business Momentum

The sales pipeline remains solid with project lead flow and new project originations both increasing, indicating sustained business momentum.

Operational Efficiency

Consultant utilization rates improved due to strong demand and strategic workforce adjustments, enhancing overall efficiency.

Negative Factors

Operational Challenges

Headcount reductions were implemented, but have supported strong utilization, which might indicate operational challenges in balancing workforce and workload.

Workforce Management

Headcount reductions might indicate underlying operational challenges in managing workforce and workload balance.

Cra International Business Overview & Revenue Model

Company Description

CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, new product pricing strategies, valuation of intellectual property and other assets, assessment of competitors' actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

CRA International makes money primarily through consulting fees charged to its clients for the services it provides. The company's revenue model is based on billing clients for the time and expertise of its consultants, who deliver specialized advice and analysis. Key revenue streams include project-based consulting engagements, expert witness services in legal proceedings, and strategic advisory services for corporate and government clients. Additionally, CRA International may enter into significant partnerships with other firms or institutions to expand its service offerings and enhance its market position, thereby contributing to its earnings.

Cra International Financial Statement Overview

Summary

CRA International presents a strong financial profile with significant revenue growth and efficient operational margins. The balance sheet is stable, supported by a healthy return on equity. However, cash flow management shows some decline in operational cash generation, which could pose a risk if not addressed.

Income Statement

Cra International demonstrates strong revenue growth with a 10.2% increase from the previous year, indicating robust business activity. The gross profit margin is healthy at 100%, highlighting efficient cost management. The EBIT and EBITDA margins are also solid at 10.3% and 10.7% respectively, reflecting operational efficiency. However, the net profit margin is moderate at 6.8%, suggesting room for improvement in net profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.49, indicating manageable leverage. The return on equity is strong at 22%, suggesting effective use of equity capital. However, the equity ratio is moderate at 37.1%, indicating a balanced use of debt and equity but with potential for increased equity financing.

Cash Flow

Cra International's cash flow statement shows a decline in operating cash flow by 17.2%, which could impact liquidity. The free cash flow to net income ratio is 0.71, indicating moderate conversion of income to free cash flow. However, the company has managed to maintain a positive free cash flow, ensuring financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
687.41M	623.98M	590.90M	565.93M	508.37M
	Gross Profit
207.48M	171.73M	180.82M	165.88M	137.66M
	EBIT
70.75M	56.61M	58.74M	55.74M	34.80M
	EBITDA
97.48M	81.94M	86.38M	81.02M	59.72M
	Net Income Common Stockholders
46.65M	38.48M	43.62M	41.68M	24.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.71M	45.59M	31.45M	66.13M	45.68M
	Total Assets
571.44M	553.21M	550.92M	555.36M	558.51M
	Total Debt
103.24M	108.75M	121.98M	138.80M	153.00M
	Net Debt
76.53M	63.17M	90.53M	72.67M	107.33M
	Total Liabilities
359.37M	341.11M	339.76M	349.53M	349.49M
	Stockholders Equity
212.07M	212.10M	211.15M	205.83M	209.02M
Cash Flow		Free Cash Flow
33.11M	57.71M	21.31M	73.08M	37.57M
	Operating Cash Flow
49.73M	60.07M	25.12M	75.70M	54.66M
	Investing Cash Flow
-18.12M	-2.94M	-18.16M	-2.62M	-17.09M
	Financing Cash Flow
-48.86M	-44.48M	-38.95M	-51.99M	-19.50M

Cra International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRAI, the sentiment is Negative. The current price of 162.36 is below the 20-day moving average (MA) of 166.97, below the 50-day MA of 178.29, and below the 200-day MA of 178.96, indicating a bearish trend. The MACD of -4.09 indicates Negative momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRAI.

Cra International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HURN	80 Outperform	$2.41B	21.39	21.32%	―	8.80%	97.52%
EFX	73 Outperform	$31.94B	52.53	12.83%	0.63%	7.12%	9.05%
FCN	73 Outperform	$5.73B	20.72	12.46%	―	6.00%	-1.49%
ICFI	70 Outperform	$1.58B	14.75	11.60%	0.65%	2.88%	33.76%
CRAI	70 Neutral	$1.11B	24.11	21.96%	1.12%	10.17%	24.74%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
FORR	50 Neutral	$190.57M	―	-2.45%	―	-10.05%	-288.36%

Cra International Corporate Events

CRA International Announces CFO Transition Amidst Record Revenue

On March 11, 2025, CRA International announced that Daniel K. Mahoney will resign from his positions as Chief Financial Officer, Executive Vice President, and Treasurer, effective April 11, 2025, to pursue an opportunity outside the consulting industry. Chad Holmes, currently the Executive Vice President and Chief Corporate Development Officer, will take over as interim CFO while the company searches for a permanent replacement. This transition comes as CRA celebrates its seventh consecutive year of record annual revenue, highlighting the company’s strong market and financial position. The leadership change is expected to be smooth, with Holmes having previously served as CFO and Treasurer from 2014 to 2020.

CRA International Announces Dividend and Share Buyback Expansion

On February 20, 2025, CRA announced a quarterly cash dividend of $0.49 per share, payable on March 14, 2025, and a $45 million expansion of its share repurchase program. For the fourth quarter and full-year 2024, CRA reported record revenue and profitability, driven by strong growth across various practices, including Energy, Finance, and Intellectual Property, with a 9.2% revenue increase in the fourth quarter and a 10.2% increase for the year. The company’s financial performance exceeded expectations, demonstrating continued strength despite global uncertainties.