Cra International (CRAI) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 0.96%
• Average Volume (3M): 91.89K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.87
• Revenue Growth: 9.28%
• EPS Growth: 44.19%
• Country: US
• Employees: 947
• Sector: Industrials
• Sector Strength: 80
• Industry: Consulting Services
• EPS (TTM): 1.88
• Shares Outstanding: 6,584,093
• 10 Day Avg. Volume: 69,810
• 30 Day Avg. Volume: 91,891
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 14.63
• 1Y Price Target: $223.50
• Price Target Upside: 13.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $212.00 ▲(7.54% 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

Earnings

CRA's revenue increased 9% year-over-year in Q2/25, surpassing estimates and showing strong growth in key consulting practices.

Guidance

CRA raised its fiscal year 2025 revenue guidance based on strong year-to-date performance and continued demand momentum.

Shareholder Value

CRA returned cash to shareholders through dividends and share repurchases, reflecting a commitment to shareholder value.

Negative Factors

Headcount

Headcount was down 3% year-over-year (-1% sequentially), but was roughly flat excluding the headcount actions taken by management.

Macroeconomic Uncertainty

Continued broad-based business momentum was enough for an upward adjustment to the full year 2025 outlook despite prevailing macroeconomic and regulatory uncertainty.

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 strong financial performance with consistent revenue growth and robust profitability margins. While the balance sheet is stable with a solid capital structure, 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	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: 197.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 197.14 is above the 20-day moving average (MA) of 184.37, above the 50-day MA of 185.46, and above the 200-day MA of 184.09, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 63.33 is Neutral, neither overbought nor oversold. The STOCH value of 72.34 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	$1.30B	23.89	29.05%	0.96%	9.28%	44.19%
FCN	75 Outperform	$5.44B	23.65	12.33%	―	-0.89%	-23.72%
HURN	72 Outperform	$2.34B	24.23	21.55%	―	8.99%	35.56%
EFX	71 Outperform	$31.57B	49.87	13.06%	0.65%	6.86%	9.10%
ICFI	70 Outperform	$1.85B	17.41	11.09%	0.56%	-0.47%	10.03%
Sector *	64 Neutral	$10.92B	16.41	7.42%	2.02%	2.59%	-16.33%
FORR	47 Neutral	$191.97M	―	-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.