Cra International (CRAI) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 1.05%
• Average Volume (3M): 122.14K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.79
• Revenue Growth: 8.49%
• EPS Growth: 21.06%
• Country: US
• Employees: 947
• Sector: Industrials
• Sector Strength: 87
• Industry: Consulting Services
• EPS (TTM): 2.22
• Shares Outstanding: 6,808,872
• 10 Day Avg. Volume: 168,340
• 30 Day Avg. Volume: 122,143
• PEG Ratio: 2.63
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.47
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $228.00
• Price Target Upside: 16.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $206.00 ▲(5.40%Upside)

CRA International's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. While technical analysis and valuation suggest moderate performance, the company's strategic initiatives and robust revenue growth are significant strengths.

Positive Factors

Earnings

CRA's Q1/25 revenue increased 6% year-over-year to $181.9 million, exceeding estimates and driven by growth in key consulting practices.

Financial Performance

CRA's Q1/25 non-GAAP EBITDA increased 11% year-over-year to $24.8 million, surpassing estimates and supported by improved consultant utilization.

Growth Outlook

CRA has reaffirmed its favorable fiscal year 2025 guidance, with expectations of continued revenue growth and strong profit margins.

Negative Factors

Operational Challenges

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

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 its consulting services, which are billed on a fee-for-service basis. The firm's revenue streams are derived from engagements with corporations, law firms, and government agencies that require expert analysis and advice in areas such as litigation support, economic modeling, and strategic decision-making. The company benefits from long-term relationships with clients and often participates in high-stakes legal and regulatory cases that require in-depth expertise. Significant partnerships with legal firms and ongoing demand for expert consulting in regulatory and competitive issues further contribute to CRAI's earnings.

Cra International Financial Statement Overview

Summary

CRA International shows strong financial performance with consistent revenue growth, robust profit margins, and a stable balance sheet. However, there is room for improvement in cash flow management.

Income Statement

CRA International shows a strong financial performance with a consistent growth trajectory. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 47.8%, indicating efficient cost management. The net profit margin stands at 7.3% for TTM, reflecting healthy profitability. Revenue growth has been steady, with TTM revenue increasing by 1.5% compared to the previous annual period. EBIT and EBITDA margins are also robust at 11% and 14.2% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of CRA International demonstrates stability with a manageable debt-to-equity ratio of 0.81, indicating a balanced approach to leveraging. The return on equity (ROE) for TTM is 22.4%, a strong indicator of effective utilization of shareholder funds. The equity ratio is 38.5%, suggesting a solid capital structure with a healthy portion of assets funded by equity.

Cash Flow

The cash flow statement reflects moderate financial health with some areas for improvement. The free cash flow for TTM has decreased compared to the previous period, resulting in a negative free cash flow growth rate. However, the operating cash flow to net income ratio is 0.64 for TTM, indicating that operating cash generation is covering net income. The free cash flow to net income ratio is 0.31, suggesting room for improving cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	697.48M	687.41M	623.98M	590.90M	565.93M	508.37M
Gross Profit	213.25M	207.48M	171.73M	180.82M	165.88M	137.66M
EBITDA	99.28M	97.48M	81.94M	86.38M	81.02M	59.72M
Net Income	50.96M	46.65M	38.48M	43.62M	41.68M	24.51M
Balance Sheet
Total Assets	590.44M	571.44M	553.21M	550.92M	555.36M	558.51M
Cash, Cash Equivalents and Short-Term Investments	25.60M	26.71M	45.59M	31.45M	66.13M	45.68M
Total Debt	184.94M	103.24M	108.75M	121.98M	138.80M	153.00M
Total Liabilities	363.12M	359.37M	341.11M	339.76M	349.53M	349.49M
Stockholders Equity	227.32M	212.07M	212.10M	211.15M	205.83M	209.02M
Cash Flow
Free Cash Flow	15.95M	33.11M	57.71M	21.31M	73.08M	37.57M
Operating Cash Flow	32.82M	49.73M	60.07M	25.12M	75.70M	54.66M
Investing Cash Flow	-18.37M	-18.12M	-2.94M	-18.16M	-2.62M	-17.09M
Financing Cash Flow	-25.85M	-48.86M	-44.48M	-38.95M	-51.99M	-19.50M

Cra International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 195.45
• 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 195.45 is above the 20-day moving average (MA) of 186.12, above the 50-day MA of 182.26, and above the 200-day MA of 182.94, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 65.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.66 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
HURN	78 Outperform	$2.37B	20.77	24.88%	―	8.83%	92.48%
CRAI	76 Outperform	$1.31B	25.92	23.18%	1.05%	8.49%	21.06%
EFX	73 Outperform	$32.78B	53.90	12.83%	0.76%	7.12%	9.05%
FCN	73 Outperform	$5.63B	22.38	12.46%	―	1.59%	-16.79%
ICFI	72 Outperform	$1.60B	14.95	11.64%	0.66%	1.95%	17.98%
Sector *	68 Neutral	CHF6.91B	25.29	16.28%	2.88%	-2.63%	-20.30%
FORR	46 Neutral	$195.78M	―	-45.64%	―	-9.61%	-18170.36%

Cra International Corporate Events

CRA International Announces Quarterly Cash Dividend

On May 1, 2025, Charles River Associates announced a quarterly cash dividend of $0.49 per share, payable on June 13, 2025. The company reported record financial results for the first quarter of 2025, with revenue increasing by 5.9% to $181.9 million and net income rising by 31.5% year over year. CRA’s strong performance was driven by broad-based contributions across its practices, with significant growth in Energy, Finance, Intellectual Property, and Life Sciences. The company reaffirmed its financial guidance for the full year, despite acknowledging potential impacts from uncertain global conditions.