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Cra Internationalinc. (CRAI)
NASDAQ:CRAI
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Cra International (CRAI) AI Stock Analysis

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CRAI

Cra International

(NASDAQ:CRAI)

Rating:69Neutral
Price Target:
$186.00
▲(9.31%Upside)
CRA International's overall stock score is driven by its strong financial performance and positive earnings outlook. However, technical indicators suggest short-term challenges, and the valuation indicates potential overpricing. Recent corporate events add positively to the strategic outlook.
Positive Factors
Earnings Guidance
Management raised full year 2025 revenue guidance, now calling for constant-currency revenue of $730 million-$745 million.
Investment Rating
With a price target increase to $228 and a 19% upside potential, the analyst reiterates an OUTPERFORM investment rating for CRA.
Revenue Growth
CRA's second-quarter revenue was $8 million above both the estimate and consensus, driven by double-digit growth in four practices and solid performance across geographies.
Negative Factors
Headcount Reductions
Headcount was down 5% year-over-year (flat sequentially), largely due to the targeted headcount actions taken by management, which were attributed to a misalignment of headcount and revenue growth opportunities.
Workforce Management
Headcount reductions were implemented, but have supported strong utilization, which might indicate operational challenges in balancing workforce and workload.

Cra International (CRAI) vs. SPDR S&P 500 ETF (SPY)

Cra International Business Overview & Revenue Model

Company DescriptionCRA 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 MoneyCRA 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -1.69%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
CRA's earnings call highlighted strong revenue growth across multiple practices, particularly in Antitrust & Competition Economics, and record-setting first-half results, leading to an increase in revenue guidance. However, headcount reductions, challenges in the Life Sciences practice, and high debt levels were notable concerns. Overall, the positive performance metrics and strategic achievements outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Revenue Growth Across Practices
CRA reported a 9% year-over-year increase in second quarter revenue to $186.9 million, with 7 of 11 practices growing year-over-year. Notable growth occurred in Antitrust & Competition Economics, Energy, Intellectual Property, and Labor & Employment practices, each posting double-digit revenue growth.
Record First Half of Fiscal 2025
The first half of fiscal 2025 was the best in the company's history, with revenue of $367.6 million and non-GAAP EBITDA of $47.7 million, resulting in a margin of 13%.
Antitrust & Competition Economics Practice Success
The Antitrust & Competition Economics practice set a new quarterly revenue record, contributing significantly to the firm's growth by supporting high-profile mergers and securing a $406 million jury verdict in a pharmaceutical case.
Increase in Revenue Guidance
CRA raised its full-year fiscal 2025 revenue guidance to $730 million-$745 million, up from $715 million-$735 million, and increased the lower end of its non-GAAP EBITDA margin guidance.
Consultant Utilization Improvement
Consultant utilization improved to 76% year-over-year, supported by replenishing the sales pipeline and increasing project lead flow by 5% year-over-year after adjustments.
Negative Updates
Headcount Reduction
The consultant headcount decreased by 3.2% year-over-year, from 968 to 937, reflecting portfolio optimization actions.
Life Sciences Practice Challenges
While the Life Sciences practice expanded year-over-year, it posted a slight decline in the second quarter due to challenging industry dynamics.
High Debt Levels
CRA concluded the second quarter with a net debt of $100.6 million, due to $120 million of borrowings under its revolving credit facility, used to manage working capital needs and fund bonuses.
Company Guidance
During the second quarter of fiscal 2025, Charles River Associates reported a 9% year-over-year revenue increase to $186.9 million, marking a continuation of their strong performance from the first quarter. This growth was driven by double-digit revenue increases in their Antitrust & Competition Economics, Energy, Intellectual Property, and Labor & Employment practices. The company's North American and international operations also saw revenue growth of 9.4% and 7.0%, respectively. CRA's non-GAAP net income, EPS, and EBITDA surpassed the record-setting first half of fiscal 2024 by 6%, 8%, and 8%, respectively. With a consultant utilization rate improving to 76%, CRA increased its revenue guidance for the full year fiscal 2025 to a range of $730 million to $745 million and adjusted the lower end of its non-GAAP EBITDA margin guidance to 12.3% to 13.0%. The company's legal and regulatory services revenue rose nearly 11%, supported by a 17% increase in total case filings. CRA's competition practice contributed significantly to this growth, advising on high-profile mergers during a period where worldwide M&A activity reached nearly $2 trillion, the strongest since 2022. Additionally, CRA returned $46.6 million of capital to shareholders through dividends and share repurchases, and ended the quarter with total liquidity of $145.9 million.

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
85
Very Positive
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
78
Positive
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
73
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue712.91M687.41M623.98M590.90M565.93M508.37M
Gross Profit224.76M207.48M171.73M180.82M165.88M137.66M
EBITDA100.32M97.48M81.94M86.38M81.02M59.72M
Net Income56.55M46.65M38.48M43.62M41.68M24.51M
Balance Sheet
Total Assets606.78M571.44M553.21M550.92M555.36M558.51M
Cash, Cash Equivalents and Short-Term Investments19.45M26.71M45.59M31.45M66.13M45.68M
Total Debt223.88M103.24M108.75M121.98M138.80M153.00M
Total Liabilities409.78M359.37M341.11M339.76M349.53M349.49M
Stockholders Equity197.00M212.07M212.10M211.15M205.83M209.02M
Cash Flow
Free Cash Flow21.13M33.11M57.71M21.31M73.08M37.57M
Operating Cash Flow36.87M49.73M60.07M25.12M75.70M54.66M
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
Negative
Last Price170.16
Price Trends
50DMA
185.56
Negative
100DMA
179.57
Negative
200DMA
184.25
Negative
Market Momentum
MACD
-3.95
Positive
RSI
34.68
Neutral
STOCH
30.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRAI, the sentiment is Negative. The current price of 170.16 is below the 20-day moving average (MA) of 183.18, below the 50-day MA of 185.56, and below the 200-day MA of 184.25, indicating a bearish trend. The MACD of -3.95 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRAI.

Cra International Risk Analysis

Cra International disclosed 31 risk factors in its most recent earnings report. Cra International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cra International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.11B21.3021.55%8.99%35.56%
73
Outperform
$5.36B23.2712.33%-0.89%-23.72%
72
Outperform
$1.54B14.3911.09%0.63%-0.47%10.03%
70
Outperform
$29.71B46.9313.06%0.70%6.86%9.10%
69
Neutral
$1.20B21.4029.05%1.07%9.28%44.19%
64
Neutral
$10.64B16.526.24%2.15%3.01%-28.89%
52
Neutral
$185.67M-45.64%-9.11%-6082.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRAI
Cra International
170.16
17.40
11.39%
EFX
Equifax
239.99
-36.72
-13.27%
FORR
Forrester Research
10.94
-7.75
-41.47%
FCN
FTI Consulting
165.52
-49.66
-23.08%
HURN
Huron Consulting
121.98
17.26
16.48%
ICFI
Icf International
88.45
-63.65
-41.85%

Cra International Corporate Events

DividendsFinancial Disclosures
CRA International Announces Quarterly Dividend and Record Revenue
Positive
Jul 31, 2025

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.

The most recent analyst rating on (CRAI) stock is a Buy with a $212.00 price target. To see the full list of analyst forecasts on Cra International stock, see the CRAI Stock Forecast page.

Executive/Board ChangesShareholder Meetings
CRA International Announces Executive Promotions and Changes
Positive
Jul 22, 2025

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.

The most recent analyst rating on (CRAI) stock is a Hold with a $210.00 price target. To see the full list of analyst forecasts on Cra International stock, see the CRAI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025