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Carter'sCRI -1.50%71 Debt-to-EBITDA is 6.61 as of Mar. 2026, which is 141% above its 10-year median of 2.74. GuruFocus rates CRI with a GF Score™ of 71/100 and a GF Value™ of $57.85 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 897 Retail - Cyclical companies, Carter's ranks worse than 81.27% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Carter's's Debt-to-EBITDA or its related term are showing as below:
CRI'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.17 Med: 2.74 Max: 6.07
Current: 5.8
During the past 13 years, the highest Debt-to-EBITDA Ratio of Carter's was 6.07. The lowest was 1.17. And the median was 2.74.
CRI's Debt-to-EBITDA is ranked worse than 81.27% of 897
companies
in the Retail - Cyclical industry
Industry Median: 2.4
vs CRI: 5.80
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Carter's Debt-to-EBITDA Related Terms
Carter's Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Carter's's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Retail subindustry, Carter's's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Carter's Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Carter's's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Carter's's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Carter's (CRI) has a Debt-to-EBITDA of 6.61 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Carter's. This is 141% above median its historical median of 2.74. Over the past decade, Carter's' Debt-to-EBITDA has ranged from 1.17 to 6.07. According to the industry distribution chart, Carter's ranks #729 out of 897 companies in the Retail - Cyclical industry, placing it in the top 81.3%.
Is Carter's' Debt-to-EBITDA too high?
Carter's' current Debt-to-EBITDA of 6.61 is 141% above median its 10-year median of 2.74. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 6.07. The Retail - Cyclical industry median Debt-to-EBITDA is 2.40. Carter's' value of 6.61 is 175.4% above this industry median. Based on the distribution chart, Carter's ranks #729 out of 897 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Carter's has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Carter's' Debt-to-EBITDA compare to BKE and SFIX?
According to the Retail - Cyclical industry distribution chart, Carter's ranks #729 out of 897 companies for Debt-to-EBITDA. This places Carter's in the lower half of its industry. The industry median Debt-to-EBITDA is 2.40. Carter's' value of 6.61 is 175.4% above this benchmark. Historically, Carter's' own Debt-to-EBITDA has ranged from 1.17 to 6.07 over the past decade. While the company's 10-year median is 2.74 vs. the industry median of 2.40, Carter's has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.40, based on 897 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carter's's current Debt-to-EBITDA of 6.61 is 175.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Carter's. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carter's's current Debt-to-EBITDA is 6.61, which is 141% above median its own 10-year median of 2.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carter's stock overvalued right now?
Based on GuruFocus' analysis, Carter's (CRI) is currently considered Significantly Undervalued. The stock's GF Value™ is $57.85, compared to a current price of $38.00 — trading 34.3% below its estimated fair value. The current Debt-to-EBITDA is 6.61, which is 141% above median its 10-year median of 2.74 and 175.4% above the Retail - Cyclical industry median of 2.40. Carter's' overall GF Score™ is 71/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Carter's (CRI), the current Debt-to-EBITDA is 6.61 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Carter's (CRI) Overvalued in 2026?
Based on GuruFocus' analysis, Carter's stock appears to be undervalued.
The current stock price of $38.00 is trading 34.3% below its estimated GF Value™ of $57.85.
GuruFocus considers Carter's to be Significantly Undervalued.
Key valuation signals for CRI:
Debt-to-EBITDA: 6.61 (141% above median its 10-year median of 2.74)
GF Value™: $57.85 vs. price of $38.00 (34.3% below fair value)
Industry Position: 175.4% above the Retail - Cyclical median (#729 of 897)
No single metric tells the full story. See the CRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carter's Inc makes apparel for babies and children under brand names including Carter's and OshKosh B'gosh. It sells its products through a multi-channel business model, which includes retail stores, eCommerce, and wholesale sales channels, as well as retail omnichannel capabilities in the United States and Canada, which enables it to reach a broad range of consumers around the world. The company operates in three segments; U.S. Retail, U.S. Wholesale, and International. The majority of revenue is derived from U.S. Wholesale segment. The company predominantly sources products through contract manufacturers in Asia. It has multiple distribution centers in the U.S., in addition to distribution centers in Canada and Asia that serve international customers.
71GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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