CRA International, Inc. (CRAI)

CRA International, Inc. (CRAI) Industrial Operations Profile

CRA International, Inc. (CRAI) delivers economic, financial, and management consulting services across diverse industries. With a focus on litigation support, regulatory guidance, and strategic performance, CRAI leverages its expertise to advise corporations globally, distinguishing itself through specialized consulting and a wide industry reach.

What Is the Investment Thesis for CRAI?

CRA International, Inc. presents an investment opportunity driven by its diversified consulting services and global reach. With a P/E ratio of 15.4 and a profit margin of 6.2%, CRAI demonstrates stable profitability. Key value drivers include the increasing demand for litigation support and regulatory consulting, as well as the company's expansion into new markets and industries. The company's beta of 0.84 suggests lower volatility compared to the market. Upcoming growth catalysts include potential acquisitions and strategic partnerships. Potential risks include economic downturns affecting consulting demand and increased competition within the consulting industry. The dividend yield of 1.52% offers a modest return to investors.

Based on FMP financials and quantitative analysis

CRAI Key Highlights

• Market Cap of $970.49M reflects CRAI's established position in the consulting industry.
• P/E Ratio of 15.4 indicates a reasonable valuation compared to earnings.
• Profit Margin of 6.2% demonstrates consistent profitability in a competitive market.
• Gross Margin of 27.1% highlights the company's ability to manage service costs effectively.
• Dividend Yield of 1.52% provides a steady income stream for investors.

Who Are CRAI's Competitors?

CRAI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CRAI's Key Strengths?

• Strong reputation in litigation consulting.
• Diverse industry coverage.
• Global presence.
• Experienced team of consultants.

What Are CRAI's Weaknesses?

• Reliance on project-based revenue.
• Vulnerability to economic downturns.
• Smaller size compared to major competitors.
• Lower profit margin compared to some peers.

What Could Drive CRAI Stock Higher?

• Increasing demand for litigation support services.
• Expansion into new geographic markets.
• Potential strategic acquisitions to expand service offerings.
• Growth in digital transformation consulting.
• Development of proprietary consulting methodologies.

What Are the Key Risks for CRAI?

• Economic downturns affecting consulting demand.
• Increased competition from larger consulting firms.
• Changes in regulations impacting consulting services.
• Reliance on project-based revenue.
• Loss of key consultants.

What Are the Growth Opportunities for CRAI?

• Expansion into Emerging Markets: CRAI has the opportunity to expand its presence in emerging markets, where demand for consulting services is growing rapidly. This expansion can be achieved through strategic partnerships, acquisitions, or organic growth. The emerging markets consulting industry is projected to reach $500 billion by 2030, offering significant growth potential for CRAI. A successful expansion would diversify CRAI's revenue streams and reduce its reliance on developed markets.
• Increased Focus on Digital Transformation Consulting: As businesses increasingly adopt digital technologies, the demand for digital transformation consulting services is growing. CRAI can capitalize on this trend by expanding its digital transformation consulting capabilities and offering specialized services to clients. The digital transformation consulting market is expected to reach $1 trillion by 2028, presenting a substantial growth opportunity for CRAI. This strategic focus would enhance CRAI's competitive advantage and attract new clients.
• Strategic Acquisitions: CRAI can pursue strategic acquisitions to expand its service offerings, geographic reach, and client base. Acquisitions can provide access to new technologies, expertise, and markets, accelerating CRAI's growth. The consulting industry is highly fragmented, offering numerous acquisition opportunities for CRAI. Successful acquisitions would strengthen CRAI's market position and enhance its ability to serve clients.
• Development of Proprietary Consulting Methodologies: CRAI can develop proprietary consulting methodologies and tools to differentiate itself from competitors and provide unique value to clients. These methodologies can be based on CRAI's deep industry expertise and research capabilities. Proprietary methodologies would enhance CRAI's competitive advantage and attract clients seeking innovative solutions. This would also allow CRAI to charge premium fees for its services.
• Enhanced Focus on Cybersecurity Consulting: With the increasing threat of cyberattacks, the demand for cybersecurity consulting services is growing rapidly. CRAI can expand its cybersecurity consulting capabilities and offer specialized services to clients. The cybersecurity consulting market is projected to reach $200 billion by 2027, offering a significant growth opportunity for CRAI. This strategic focus would enhance CRAI's competitive advantage and attract new clients concerned about data security.

What Opportunities Does CRAI Have?

• Expansion into emerging markets.
• Increased demand for digital transformation consulting.
• Strategic acquisitions.
• Development of proprietary consulting methodologies.

What Threats Does CRAI Face?

• Increased competition from larger consulting firms.
• Economic downturns affecting consulting demand.
• Changes in regulations impacting consulting services.
• Loss of key consultants.

What Are CRAI's Competitive Advantages?

• Expertise in niche consulting areas.
• Strong reputation for providing high-quality services.
• Long-standing relationships with clients.
• Global presence and diverse industry coverage.

What Does CRAI Do?

CRA International, Inc., established in 1965 and headquartered in Boston, Massachusetts, operates as a global consulting firm providing economic, financial, and management consulting services. The company advises clients on complex economic and financial matters related to litigation and regulatory proceedings, assisting corporations in navigating business strategy and performance-related challenges. CRAI offers a range of consulting services, including research and analysis, expert testimony, and support in areas such as finance, accounting, economics, insurance, and forensic accounting. These services cater to corporate clients and attorneys involved in legal and regulatory disputes. Furthermore, CRAI provides management consulting services encompassing strategy development, performance improvement, corporate strategy and portfolio analysis, market demand estimation, new product pricing strategies, intellectual property valuation, competitive assessment, and supply chain analysis. The company serves a diverse array of industries, including communications and media, consumer products, energy, financial services, healthcare, life sciences, manufacturing, natural resources, retail, technology, and transportation. CRAI's global presence extends across the United States, the United Kingdom, and other international markets, solidifying its position as a key player in the consulting industry.

What Products and Services Does CRAI Offer?

• Provides economic consulting services related to litigation.
• Offers financial consulting services for regulatory proceedings.
• Delivers management consulting to improve business strategy.
• Conducts research and analysis for corporate clients.
• Provides expert testimony in legal and regulatory cases.
• Offers forensic accounting and investigation services.
• Assists with intellectual property valuation.

How Does CRAI Make Money?

• Provides consulting services on a project basis.
• Generates revenue through hourly or fixed fees.
• Serves a diverse range of industries.
• Maintains a global presence with offices in multiple countries.

What Industry Does CRAI Operate In?

CRA International operates within the consulting services industry, a sector characterized by intense competition and evolving client needs. The industry is influenced by macroeconomic trends, regulatory changes, and technological advancements. Market trends include increasing demand for specialized consulting services, such as litigation support and digital transformation. CRAI competes with other consulting firms, including large multinational corporations and niche specialists. The consulting services market is projected to grow at a steady pace, driven by the increasing complexity of business operations and the need for expert advice.

Who Are CRAI's Key Customers?

• Corporations involved in litigation.
• Attorneys requiring expert testimony.
• Companies seeking to improve business strategy.
• Organizations needing regulatory compliance advice.

FY2027 estForward Outlook

Wall Street analysts project CRA International, Inc. revenue of about $801.2M for fiscal 2027, with EPS near $8.60. The estimate reflects 3 contributing analysts.

Quarterly Financial Performance: CRA International, Inc.

Revenue for CRA International, Inc. came in at $201.0M during Q2 2026, a 2.0% improvement versus the preceding quarter. The company recorded net income of $11.1M, with diluted EPS of $1.69. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Industrials company. Across the four most recent quarters, CRAI averaged $1.80 in diluted EPS.

CRAI Valuation & Market Position

With a $970.49M market cap, CRA International, Inc. sits in the small-cap segment of the market. Relative to its peer group, CRAI's quantitative score of 41/100 is below the peer average of 68/100.

ROE 24%Key Financial Metrics

Return on equity for CRA International, Inc. stands at 23.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.2%, showing how much profit it generates from its asset base. CRAI trades at a trailing price-to-earnings ratio of 15.39, below the Industrials sector average of ~30x. Its free cash flow yield is -1.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.83 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 4/9Financial Health

CRA International, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.08 places it in the safe zone, indicating low near-term bankruptcy risk.

Company Profile

CRA International, Inc. operates in the Consulting Services industry within the Industrials sector. It is headquartered in Boston, US. The company is led by CEO Paul A. Maleh. CRAI has traded publicly since 1998.

CRAI Financials

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CRAI Analyst Consensus

CRAI MoonshotScore

What Investors Ask About CRA International, Inc. (CRAI) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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