Cra International (CRAI) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 0.97%
• Average Volume (3M): 145.67K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.15
• Revenue Growth: 8.69%
• EPS Growth: 34.58%
• Country: US
• Employees: 947
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 2.06
• Shares Outstanding: 6,566,183
• 10 Day Avg. Volume: 171,686
• 30 Day Avg. Volume: 145,666
• PEG Ratio: 1.18
• Price to Book (P/B): 6.23
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 71.76
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 12.09
• 1Y Price Target: $245.00
• Price Target Upside: 32.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 8.8
• Revenue Forecast (FY): $777.19M

• Rating: 67 Neutral
• Price Target: $182.00 ▼(-1.58% Downside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is driven primarily by solid financial performance (steady revenue growth, healthy margins/ROE, and improving leverage) tempered by notable cash-flow volatility. Earnings call guidance and operating momentum are supportive, while weak technicals (below key moving averages with negative MACD) weigh on the near-term setup; valuation is reasonable with a modest dividend yield.

Positive Factors

Consistent multi-year revenue growth

Eight consecutive years of record revenue and 9.3% YoY growth in 2025 indicate durable demand across industries and client stickiness. Broad-based practice and international growth reduce concentration risk and support a predictable project pipeline and contract renewals over the next several quarters.

Healthy profitability and returns

Sustained EBITDA margins in the low-to-mid teens and strong ROE signal scalable consulting economics and quality earnings. These margins support reinvestment in talent and technology while enabling consistent shareholder returns and resilience to moderate revenue swings over a multi-quarter horizon.

Improving leverage & disciplined capital allocation

Meaningful reduction in leverage and active revolver repayment enhance balance-sheet flexibility. Strong cash conversion in 2025 and expanded repurchase authorization reflect disciplined capital allocation that can sustain dividends and buybacks while preserving liquidity for strategic hires or M&A over the coming 2–6 months.

Negative Factors

Volatile operating cash flow

Significant swings in operating cash flow weaken cash reliability despite positive free cash flow historically. This variability, driven by working-capital movement, increases financing and timing risk for buybacks/dividends and reduces margin of safety if client payments slow or project timing shifts in the next several quarters.

Elevated receivables / DSO

High DSO ties up cash and indicates collection and project billing timing risks. Elevated receivables magnify working-capital swings and increase sensitivity to client payment delays, constraining liquidity and making cash generation less predictable across upcoming reporting periods.

Concentrated talent costs & noncash amortization

Large, concentrated investments in senior talent raise noncash amortization and recurring compensation-related costs, which can depress reported EBITDA and strain cash flow if revenue growth softens. Coupled with a structurally higher projected tax rate, these factors reduce near-term earnings quality and free cash flow resilience.

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

CRAI generates revenue primarily through its consulting services, which are billed on a project basis or through retainer agreements. Key revenue streams include fees for expert witness services in litigation cases, economic consulting for regulatory matters, and strategic advisory services for corporations and government entities. The firm often engages in long-term contracts with clients, providing ongoing support and expertise. Significant partnerships with law firms, government agencies, and corporations enhance CRAI's market reach and contribute to its earnings by positioning the firm as a trusted advisor in high-stakes scenarios.

Cra International Financial Statement Overview

Summary

Steady multi-year revenue growth and healthy profitability with strong ROE alongside improving leverage support a solid fundamental profile. The main constraint is cash-flow reliability: operating cash flow has been volatile and weakened recently, and free cash flow dropped sharply in 2026.

Income Statement

Revenue has grown steadily over the last several years (from $508M in 2020 to $752M in 2026), indicating durable demand. Profitability is healthy for a consulting model, with net margin improving versus earlier years (about 7.3% in 2026 vs. ~4.8% in 2020) and solid EBITDA margin in the low-to-mid teens in most periods. The main weakness is some year-to-year volatility in profitability (notably net income dipped in 2023 vs. 2022), and 2026 gross profit/margin appears reported as zero, which limits margin transparency for that period.

Balance Sheet

Leverage is moderate and improving: debt-to-equity has trended down meaningfully (about 0.73 in 2020 to ~0.36 in 2026), suggesting a strengthening capital structure. Equity has remained stable to slightly up (~$214M in 2026), while assets have grown to ~$629M. Returns on equity are strong (roughly 18%–26% across recent years, ~25.6% in 2026), supporting the quality of earnings. A key watch item is that total debt remains material (~$76M in 2026), so continued discipline is needed if operating conditions soften.

Cash Flow

Cash generation is positive, with free cash flow remaining positive each year and generally tracking net income reasonably well (free cash flow at ~83% of net income in 2026). However, operating cash flow has been volatile and weakened recently (down to ~$22M in 2026 from ~$50M in 2024 and ~$60M in 2023), which drove a sharp drop in free cash flow in 2026 (about -34.7% growth). This variability suggests working-capital swings and reduces cash-flow reliability versus reported earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	751.58M	687.41M	623.98M	590.90M	565.93M
Gross Profit	218.16M	207.48M	171.73M	180.82M	165.88M
EBITDA	96.07M	97.48M	81.94M	86.38M	81.02M
Net Income	54.78M	46.65M	38.48M	43.62M	41.68M
Balance Sheet
Total Assets	628.87M	571.44M	553.21M	550.92M	555.36M
Cash, Cash Equivalents and Short-Term Investments	18.21M	26.71M	45.59M	31.45M	66.13M
Total Debt	127.23M	103.24M	114.34M	121.98M	138.80M
Total Liabilities	415.27M	359.37M	341.11M	339.76M	349.53M
Stockholders Equity	213.60M	212.07M	212.10M	211.15M	205.83M
Cash Flow
Free Cash Flow	18.56M	33.11M	57.71M	21.31M	73.08M
Operating Cash Flow	22.42M	49.73M	60.07M	25.12M	75.70M
Investing Cash Flow	-3.87M	-18.12M	-2.94M	-18.16M	-2.62M
Financing Cash Flow	-29.84M	-48.86M	-44.48M	-38.95M	-51.99M

Cra International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 184.92
• 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 Neutral. The current price of 184.92 is above the 20-day moving average (MA) of 169.22, below the 50-day MA of 192.08, and below the 200-day MA of 188.87, indicating a neutral trend. The MACD of -4.84 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRAI.

Cra International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HURN	71 Outperform	$2.51B	25.39	19.27%	―	12.50%	29.40%
FCN	68 Neutral	$5.09B	20.14	13.30%	―	-0.95%	-10.54%
CRAI	67 Neutral	$1.21B	22.71	25.72%	0.97%	8.69%	34.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ICFI	62 Neutral	$1.42B	15.68	9.88%	0.65%	-3.81%	-7.05%
RGP	47 Neutral	$122.95M	-0.91	-61.44%	6.74%	-10.83%	-1669.11%
FORR	42 Neutral	$117.63M	-0.98	-43.39%	―	-8.73%	-1168.15%

Cra International Corporate Events

Cra International Posts Record 2025 Results, Boosts Capital Returns

On February 26, 2026, Charles River Associates reported fourth-quarter and full-year 2025 results showing its eighth consecutive year of record annual revenue, with fiscal 2025 revenue up 9.3% to $751.6 million and GAAP net income up 17.4% to $54.8 million. The quarter’s revenue rose 11.6% to $197.0 million, driven by strong contributions from Antitrust & Competition Economics, Energy, Forensic Services, Labor & Employment, and other practices, and the firm returned $60.9 million to shareholders in 2025 through dividends and share repurchases.

Despite higher revenue and record profitability for the full year, fourth-quarter GAAP net income declined 12.0% year over year, while non-GAAP earnings per diluted share edged higher, and non-GAAP EBITDA margin eased slightly. The board underscored confidence in the company’s financial position by expanding the share repurchase authorization by $55 million, on top of $10.9 million remaining, and declaring a $0.57 per-share quarterly dividend payable on March 20, 2026 to shareholders of record on March 10, 2026, moves that reinforce CRA’s shareholder-return strategy amid ongoing macroeconomic uncertainty.

The most recent analyst rating on (CRAI) stock is a Buy with a $199.00 price target. To see the full list of analyst forecasts on Cra International stock, see the CRAI Stock Forecast page.