Cra International (CRAI) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: 1.08%
• Average Volume (3M): 79.56K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.07
• 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: 6,562,262
• 10 Day Avg. Volume: 67,346
• 30 Day Avg. Volume: 79,563
• PEG Ratio: 1.11
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 38.49
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 13.47
• 1Y Price Target: $239.00
• Price Target Upside: 26.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 8.24
• Revenue Forecast (FY): $743.09M

• Rating: 81 Outperform
• Price Target: $218.00 ▲(15.16% Upside)

CRA International's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth, improved profitability, and strategic international expansion are key strengths. Technical indicators support a positive trend, though valuation metrics suggest moderate pricing. Challenges in leverage and operational metrics like DSO are noted but outweighed by overall positive performance.

Positive Factors

Revenue Growth

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

International Expansion

Significant international expansion strengthens global market presence and diversifies revenue streams, reducing dependency on domestic markets.

Increased Profitability

Improved profitability reflects efficient operations and cost management, providing a solid foundation for sustained growth and shareholder value.

Negative Factors

Increased Leverage

Higher leverage can strain financial resources and limit flexibility, posing risks if not managed effectively, especially in volatile markets.

Increased Days Sales Outstanding (DSO)

Longer DSO indicates slower cash collection, which can impact cash flow management and operational liquidity over time.

Consultant Headcount Decrease

A decrease in consultant headcount may affect project delivery capacity and limit growth potential if not addressed strategically.

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

CRA International exhibits strong financial health with consistent revenue growth and improving profit margins. The increased leverage requires careful monitoring, but the company maintains a strong return on equity and robust cash flow generation.

Income Statement

CRA International demonstrates strong revenue growth with a TTM increase of 2.55% and consistent improvement in profit margins. The gross profit margin has improved to 31%, and the net profit margin stands at 7.74%, indicating solid profitability. EBIT and EBITDA margins have also shown positive trends, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.96 in the TTM, suggesting higher leverage, which could pose a risk if not managed carefully. However, the return on equity is robust at 27%, indicating effective use of equity to generate profits. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow has grown by 34.55% in the TTM, showcasing strong cash generation capabilities. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio remains healthy, indicating good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	731.05M	687.41M	623.98M	590.90M	565.93M	508.37M
Gross Profit	226.66M	207.48M	171.73M	180.82M	165.88M	137.66M
EBITDA	113.64M	97.48M	81.94M	86.38M	81.02M	59.72M
Net Income	56.58M	46.65M	38.48M	43.62M	41.68M	24.51M
Balance Sheet
Total Assets	629.04M	571.44M	553.21M	550.92M	555.36M	558.51M
Cash, Cash Equivalents and Short-Term Investments	22.50M	26.71M	45.59M	31.45M	66.13M	45.68M
Total Debt	194.33M	103.24M	114.34M	121.98M	138.80M	153.00M
Total Liabilities	427.39M	359.37M	341.11M	339.76M	349.53M	349.49M
Stockholders Equity	201.66M	212.07M	212.10M	211.15M	205.83M	209.02M
Cash Flow
Free Cash Flow	28.43M	33.11M	57.71M	21.31M	73.08M	37.57M
Operating Cash Flow	41.83M	49.73M	60.07M	25.12M	75.70M	54.66M
Investing Cash Flow	-13.40M	-18.12M	-2.94M	-18.16M	-2.62M	-17.09M
Financing Cash Flow	-29.74M	-48.86M	-44.48M	-38.95M	-51.99M	-19.50M

Cra International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 189.31 is above the 20-day moving average (MA) of 179.18, above the 50-day MA of 184.08, and above the 200-day MA of 183.59, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 61.52 is Neutral, neither overbought nor oversold. The STOCH value of 87.54 is Negative, 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	81 Outperform	$1.24B	22.76	27.83%	1.08%	8.69%	34.58%
FCN	77 Outperform	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$2.95B	28.63	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.57B	16.03	9.88%	0.66%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RGP	51 Neutral	$151.93M	-0.80	-61.44%	7.20%	-10.83%	-1669.11%
FORR	42 Neutral	$143.50M	―	-43.39%	―	-8.73%	-1168.15%

Cra International Corporate Events

CRA International Boosts Dividend Amid Strong Q3 Results

On October 30, 2025, CRA announced a 16% increase in its quarterly cash dividend to $0.57 per share, payable on December 12, 2025. The company reported strong financial results for the third quarter of 2025, with a 10.8% increase in revenue year over year to $185.9 million and a 12.7% rise in non-GAAP net income. CRA also raised its revenue guidance for the full fiscal year, reflecting confidence in its competitive position despite global economic uncertainties.