Cra International (CRAI) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 0.99%
• Average Volume (3M): 83.39K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.88
• Revenue Growth: 9.28%
• EPS Growth: 44.19%
• Country: US
• Employees: 947
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 1.88
• Shares Outstanding: 6,584,093
• 10 Day Avg. Volume: 78,500
• 30 Day Avg. Volume: 83,391
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 14.63
• 1Y Price Target: $223.50
• Price Target Upside: 12.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $212.00 ▲(6.98% Upside)

CRA International's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical analysis and valuation provide additional support, indicating a stable investment with potential for growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Increased Revenue Guidance

Higher revenue guidance reflects confidence in sustained business performance and robust market conditions, supporting future growth.

Executive Promotions

Leadership changes aim to strengthen management and align with strategic priorities, enhancing operational performance and long-term impact.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Flat Consultant Headcount

Challenges in hiring could impact the company's ability to meet client demand and sustain growth in key practices over time.

Life Sciences Practice Challenges

Declining performance in the Life Sciences practice may hinder overall revenue growth and diversification efforts in the long term.

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 generates revenue primarily through its consulting services, which are billed on a fee-for-service basis. The company has various key revenue streams, including project-based fees, retainer fees, and hourly billing for its experts. CRAI also benefits from long-term relationships with clients that often lead to repeat engagements, particularly in complex litigation cases where expert testimony is required. Additionally, the firm capitalizes on significant partnerships with other consulting firms and legal entities, enhancing its service offerings and market reach. The company's diverse portfolio of services allows it to adapt to changing market conditions and client needs, contributing positively to its earnings.

Cra International Financial Statement Overview

Summary

CRA International demonstrates solid financial health with strong revenue growth and profitability, moderate leverage, and stable cash flows. The decrease in Free Cash Flow is a concern, but overall financial performance remains robust.

Income Statement

CRA International displays strong financial performance with a consistent revenue growth trend. The TTM Gross Profit Margin is 31.52%, and the Net Profit Margin is 7.93%, indicating effective cost management and profitability. Revenue growth from the previous annual period is 3.70%, showing positive momentum. The EBIT Margin stands at 11.93%, and the EBITDA Margin at 14.07%, reflecting robust operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a Debt-to-Equity Ratio of 1.14, indicating moderate leverage. The Return on Equity (ROE) is 28.71%, showcasing efficient use of equity capital. The Equity Ratio is 32.47%, suggesting a stable financial position with a decent proportion of equity financing.

Cash Flow

The cash flow statement reveals a decline in Free Cash Flow, with a growth rate of -36.20% from the previous annual period. The Operating Cash Flow to Net Income Ratio is 0.65, and the Free Cash Flow to Net Income Ratio is 0.37, indicating lower cash conversion efficiency. However, the company maintains positive cash flows, supporting financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	712.91M	687.41M	623.98M	590.90M	565.93M	508.37M
Gross Profit	224.76M	207.48M	171.73M	180.82M	165.88M	137.66M
EBITDA	100.32M	97.48M	81.94M	86.38M	81.02M	59.72M
Net Income	56.55M	46.65M	38.48M	43.62M	41.68M	24.51M
Balance Sheet
Total Assets	606.78M	571.44M	553.21M	550.92M	555.36M	558.51M
Cash, Cash Equivalents and Short-Term Investments	19.45M	26.71M	45.59M	31.45M	66.13M	45.68M
Total Debt	223.88M	103.24M	108.75M	121.98M	138.80M	153.00M
Total Liabilities	409.78M	359.37M	341.11M	339.76M	349.53M	349.49M
Stockholders Equity	197.00M	212.07M	212.10M	211.15M	205.83M	209.02M
Cash Flow
Free Cash Flow	21.13M	33.11M	57.71M	21.31M	73.08M	37.57M
Operating Cash Flow	36.87M	49.73M	60.07M	25.12M	75.70M	54.66M
Investing Cash Flow	-15.74M	-18.12M	-2.94M	-18.16M	-2.62M	-17.09M
Financing Cash Flow	-27.37M	-48.86M	-44.48M	-38.95M	-51.99M	-19.50M

Cra International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 198.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRAI, the sentiment is Positive. The current price of 198.17 is above the 20-day moving average (MA) of 193.67, above the 50-day MA of 187.97, and above the 200-day MA of 183.87, indicating a bullish trend. The MACD of 2.81 indicates Positive momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 70.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRAI.

Cra International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.31B	23.41	29.05%	0.99%	9.28%	44.19%
FCN	75 Outperform	$5.40B	23.11	12.33%	―	-0.89%	-23.72%
EFX	75 Outperform	$32.22B	48.02	13.06%	0.69%	6.86%	9.10%
ICFI	72 Outperform	$1.82B	17.19	11.09%	0.57%	-0.47%	10.03%
HURN	72 Outperform	$2.46B	24.57	21.55%	―	8.99%	35.56%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
FORR	48 Neutral	$191.02M	―	-44.74%	―	-9.11%	-6082.17%

Cra International Corporate Events

CRA International Announces Quarterly Dividend and Record Revenue

On July 31, 2025, Charles River Associates announced a quarterly cash dividend of $0.49 per share, payable on September 12, 2025, to shareholders of record as of August 26, 2025. The company reported record quarterly revenue of $186.9 million for the second quarter of 2025, driven by broad-based contributions across several practices and geographic regions. CRA also increased its revenue guidance for the full fiscal year 2025, reflecting strong business momentum and demand for its services.

CRA International Announces Executive Promotions and Changes

On July 16, 2025, CRA International announced executive promotions effective August 4, 2025, with Eric Nierenberg appointed as Executive Vice President, Chief Financial Officer, and Treasurer, and Brian Langan as Executive Vice President and Chief Strategy and Business Transformation Officer. Sandra David was designated as Principal Accounting Officer, complementing her roles as Chief Accounting Officer and Controller. These leadership changes aim to strengthen CRA’s senior management team and align with strategic priorities. The promotions are expected to enhance CRA’s long-term impact and operational performance, with Nierenberg and Langan receiving significant compensation packages and equity awards. The company also held its annual shareholder meeting on July 17, 2025, where shareholders elected directors and approved executive compensation.