CRA International Operating Margin vs. Profit Margin

CRAI Stock  USD 195.03  0.89  0.46%   
Taking into consideration CRA International's profitability measurements, CRA International may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess CRA International's ability to earn profits and add value for shareholders.

CRA International Operating Profit Margin

0.0958

The current Price To Sales Ratio is estimated to decrease to 1.51. The current Days Sales Outstanding is estimated to decrease to 117.94. As of now, CRA International's Net Income Applicable To Common Shares is increasing as compared to previous years. The CRA International's current Net Income From Continuing Ops is estimated to increase to about 37.5 M, while Accumulated Other Comprehensive Income is forecasted to increase to (11.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.390.35
Moderately Up
Slightly volatile
Net Profit Margin0.05810.0849
Way Down
Pretty Stable
Operating Profit Margin0.09580.11
Fairly Down
Pretty Stable
Pretax Profit Margin0.09740.11
Fairly Down
Slightly volatile
Return On Assets0.06170.0911
Way Down
Slightly volatile
Return On Equity0.120.24
Way Down
Pretty Stable
For CRA International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CRA International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CRA International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CRA International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CRA International over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in CRA Stock please use our How to Invest in CRA International guide.
Is Research & Consulting Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CRA International. If investors know CRA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CRA International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.38
Dividend Share
1.68
Earnings Share
6.17
Revenue Per Share
97.924
Quarterly Revenue Growth
0.137
The market value of CRA International is measured differently than its book value, which is the value of CRA that is recorded on the company's balance sheet. Investors also form their own opinion of CRA International's value that differs from its market value or its book value, called intrinsic value, which is CRA International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CRA International's market value can be influenced by many factors that don't directly affect CRA International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CRA International's value and its price as these two are different measures arrived at by different means. Investors typically determine if CRA International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CRA International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

CRA International Profit Margin vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CRA International's current stock value. Our valuation model uses many indicators to compare CRA International value to that of its competitors to determine the firm's financial worth.
CRA International is rated fourth in operating margin category among its peers. It also is rated fourth in profit margin category among its peers fabricating about  0.58  of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for CRA International is roughly  1.71 . As of now, CRA International's Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CRA International's earnings, one of the primary drivers of an investment's value.

CRA International's Earnings Breakdown by Geography

CRA Profit Margin vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

CRA International

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.11 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

CRA International

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.06 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

CRA Profit Margin Comparison

CRA International is currently under evaluation in profit margin category among its peers.

CRA International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CRA International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CRA International will eventually generate negative long term returns. The profitability progress is the general direction of CRA International's change in net profit over the period of time. It can combine multiple indicators of CRA International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-12.2 M-11.6 M
Operating Income56.6 M59.4 M
Income Before Tax52.3 M54.9 M
Total Other Income Expense Net-4.3 M-4.5 M
Net Income38.5 M40.4 M
Income Tax Expense13.8 M9.9 M
Net Income Applicable To Common Shares50.2 M52.7 M
Net Income From Continuing Ops35.7 M37.5 M
Non Operating Income Net Other1.7 M1.8 M
Interest Income422.1 K402.8 K
Net Interest Income-3.7 M-3.5 M
Change To Netincome4.3 M4.1 M
Net Income Per Share 5.44  5.71 
Income Quality 0.52  0.49 
Net Income Per E B T 0.67  0.50 

CRA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CRA International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CRA International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CRA International's important profitability drivers and their relationship over time.

Use CRA International in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CRA International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CRA International will appreciate offsetting losses from the drop in the long position's value.

CRA International Pair Trading

CRA International Pair Trading Analysis

The ability to find closely correlated positions to CRA International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CRA International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CRA International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CRA International to buy it.
The correlation of CRA International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CRA International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CRA International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CRA International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your CRA International position

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When determining whether CRA International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CRA International's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cra International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cra International Stock:
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For more detail on how to invest in CRA Stock please use our How to Invest in CRA International guide.
You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
To fully project CRA International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CRA International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CRA International's income statement, its balance sheet, and the statement of cash flows.
Potential CRA International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CRA International investors may work on each financial statement separately, they are all related. The changes in CRA International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CRA International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.