Updated 3/6/25
CRA International, Inc. (NASDAQ: CRAI) is a specialized consulting firm that provides economic, financial, and management advisory services to businesses, law firms, and governments. The company operates across multiple industries, including litigation, energy, healthcare, and finance. With a strong reputation in the field and a growing market presence, CRAI has been steadily increasing its revenue and earnings over the years.
For dividend investors, CRAI offers a compelling mix of financial stability and consistent payouts. While the yield may not be the highest, the company has a responsible approach to dividend growth, making it an interesting option for those looking to balance income with long-term appreciation.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.06%
💰 Forward Annual Dividend Rate: $1.96 per share
🔄 Trailing Annual Dividend Yield: 0.94%
📊 Payout Ratio: 25.96% (Sustainable with room for growth)
📅 Ex-Dividend Date: March 4, 2025
📆 Dividend Payment Date: March 14, 2025
📊 5-Year Average Dividend Yield: 1.38%
Dividend Overview
CRA International isn’t a high-yield dividend stock, but it does offer a steady and reliable payout to investors. At 1.06%, its current forward yield is slightly below its five-year average of 1.38%, suggesting that the stock price has appreciated in recent years.
One of the more attractive aspects of CRAI’s dividend policy is its conservative payout ratio of just under 26%. This means the company is using only a small portion of its earnings for dividends, leaving plenty of room for future increases. Investors who prefer steady, predictable income with growth potential will appreciate this approach.
The company distributes dividends on a quarterly basis, with the next payout scheduled for March 14, 2025. To qualify for this payment, investors need to own shares before the ex-dividend date on March 4, 2025.
Dividend Growth and Safety
A stock’s dividend growth rate and safety are just as important as its current yield. CRA International has shown a strong commitment to maintaining and growing its dividend over time.
- Dividend Growth: While not a high-yield stock, CRAI has steadily increased its payouts, making it an appealing option for long-term income investors.
- Dividend Safety: With a low payout ratio and consistent earnings growth, the company’s dividend is well-protected.
Earnings are another key factor in ensuring dividend stability. CRAI’s earnings have been growing at an impressive pace, with quarterly earnings up 30.8% year-over-year. This kind of profitability supports not only the current dividend but also potential future increases.
Chart Analysis
Price Action
The stock price for CRA International (CRAI) has been in an overall uptrend for most of the past year, but recent price action suggests some hesitation. After peaking above $200, the stock has pulled back and is now trading around $185.28. There have been multiple attempts to push higher, but each time, sellers have stepped in to cap the upside.
The last few trading sessions show a slight downward bias, with the stock closing lower than its recent highs. The presence of wicks on the last few candles suggests indecision, with both buyers and sellers actively participating in the market.
Moving Averages
The 50-day moving average, represented by the orange line, had been providing support for most of the uptrend but has now turned slightly downward. The price is currently hovering near this moving average, indicating that momentum is fading.
The 200-day moving average, shown in blue, is still trending upward and remains below the current price. This suggests that, from a long-term perspective, the stock is still in an uptrend, but the shorter-term trend is showing signs of weakness. If the price decisively breaks below the 50-day moving average and stays there, it could indicate a deeper correction.
Volume Analysis
Trading volume has been relatively steady, but there are noticeable spikes on days when the stock has seen sharp price movements. This suggests that institutional investors may still be actively trading the stock, especially during pullbacks and rallies. However, the recent decline in volume compared to earlier in the year indicates a lack of strong conviction from buyers.
Relative Strength Index (RSI)
The RSI at the bottom of the chart shows that momentum is cooling off. It has been declining from overbought levels and is now moving closer to neutral territory. This suggests that the stock is neither extremely overbought nor oversold, leaving room for potential moves in either direction. If the RSI continues to decline, it may indicate further downside pressure ahead.
Analyst Ratings
📈 In February 2025, Barrington Research maintained its “Outperform” rating on CRA International and raised the price target from $212 to $224. This upward revision reflects confidence in CRAI’s strong financial performance and growth outlook. The firm pointed to consistent revenue growth and well-executed strategic initiatives as key reasons for the improved target.
⚖️ On the other hand, in November 2024, StockNews.com downgraded CRA International from “Buy” to “Hold”. This shift suggests a more cautious approach, possibly due to concerns over market volatility or company-specific risks at the time. While the firm acknowledged CRAI’s strengths, it signaled that investors should be more measured in their expectations, balancing both potential gains and risks.
💰 As of early March 2025, the consensus among analysts is a “Buy” rating, with an average 12-month price target of approximately $224. This projection suggests an expected upside of around 16% from the current stock price, reinforcing a generally optimistic outlook for the company’s future.
These mixed ratings illustrate how stock assessments evolve based on shifting financial metrics, industry trends, and overall market conditions. While some analysts remain bullish on CRAI’s growth trajectory, others urge a more careful stance, reflecting a balance of opportunity and risk in the stock’s outlook.
Earning Report Summary
CRA International (CRAI) wrapped up the fourth quarter of 2024 on a strong note, delivering solid financial results that outpaced expectations. The company continues to show resilience and steady growth, proving that demand for its consulting services remains strong across different industries.
Revenue and Profitability
The latest earnings report showed quarterly revenue coming in at $176.44 million, a clear beat over market expectations of $166.29 million. This marks a solid increase from the previous year, signaling that CRAI’s business model and client relationships remain strong. Earnings per share hit $2.03 for the quarter, well above the expected $1.59. That kind of beat suggests the company is managing its expenses efficiently while still finding ways to grow its revenue.
Steady Long-Term Growth
Looking beyond just one quarter, CRAI has been on a steady upward trajectory for several years now. Over the past five years, the company’s revenue has grown by 52 percent, showing consistent expansion. Part of this success comes from a diverse client base, which includes 82 percent of Fortune 100 companies and nearly all of the top U.S. law firms. Having such a broad reach gives the company stability, reducing the risks that come with relying on a small number of clients.
Expanding Talent and Global Presence
One of the key drivers of CRAI’s growth has been its investment in top-tier talent. The company now has nearly 1,000 consultants on board, with about 75 percent of senior staff holding advanced degrees. This level of expertise helps set CRAI apart in the highly competitive consulting space. With more than 20 offices spread across 10 countries, the firm has positioned itself as a truly global player, able to serve clients across different regions and industries.
Commitment to Shareholders
Beyond just growing its business, CRAI has also remained focused on rewarding shareholders. Over the past five years, a combination of stock buybacks and dividend payments has resulted in an average shareholder yield of around 7 percent. That’s a strong sign that the company is not only reinvesting in its future but also making sure investors see tangible returns.
Looking Ahead
For 2025, CRAI is projecting revenue between $715 million and $735 million. Given its track record of steady growth, this outlook seems well within reach. If the company continues executing at this level, it could keep delivering strong returns for both its clients and shareholders.
Financial Health and Stability
A good dividend stock should have strong financial fundamentals, and CRA International holds up well in this regard.
Profitability and Cash Flow
✔️ Profit Margin: 6.79%
✔️ Operating Margin: 12.05%
✔️ Return on Equity (ROE): 22.00%
✔️ Operating Cash Flow (TTM): $49.73 million
✔️ Levered Free Cash Flow: $47.07 million
With a return on equity of 22%, CRAI is generating strong returns for shareholders. The company also has a solid operating margin, which shows that it can efficiently manage its expenses while growing its revenue.
Debt and Liquidity
💳 Total Debt: $103.24 million
📉 Debt/Equity Ratio: 48.68%
💵 Total Cash on Hand: $26.71 million
📊 Current Ratio: 1.07
While CRAI does carry some debt, it remains at a manageable level. The debt-to-equity ratio of 48.68% indicates that the company is not overleveraged, and its cash position is stable. This financial flexibility helps ensure that dividend payments can continue without disruption.
Valuation and Stock Performance
CRA International’s stock has been performing well, currently trading near its 52-week high of $214.01. Over the past year, the stock has gained significant value, far outpacing its 52-week low of $133.54.
Valuation Metrics
📌 Trailing P/E Ratio: 27.50
📌 Forward P/E Ratio: 23.31
📌 Price-to-Book Ratio: 5.94
📌 PEG Ratio (5-Year Expected): 1.46
At a forward P/E of 23.31, CRAI is trading at a reasonable valuation based on expected earnings growth. The PEG ratio of 1.46 suggests that the stock is fairly valued when taking growth into account. Institutional investors hold a significant portion of the stock, with 90.24% of shares owned by large funds, which typically adds to price stability.
Risks and Considerations
While CRA International has a lot going for it, there are some potential risks to keep in mind.
- Low Dividend Yield: At just over 1%, the dividend yield isn’t particularly high. Investors seeking larger income streams may need to look elsewhere.
- Stock Volatility: With a beta of 1.09, CRAI’s share price is slightly more volatile than the broader market. Investors should be prepared for some fluctuations.
- Industry Cyclicality: CRAI operates in the consulting space, which can be sensitive to economic cycles. If corporate spending slows down, demand for its services could be affected.
- Debt Levels: Although manageable, the company does have over $100 million in debt. Rising interest rates could increase borrowing costs in the future.
Final Thoughts
CRA International is a well-managed company that offers a combination of steady growth, solid financials, and a safe dividend. While it doesn’t provide the highest yield, its low payout ratio and consistent earnings growth suggest that dividends will continue to rise over time.
For investors who prefer a blend of stability and dividend growth, CRAI could be a worthwhile addition to a long-term portfolio. However, those who need higher income streams may find better options elsewhere. With strong institutional ownership and a history of profitability, CRAI is a company worth keeping an eye on.
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