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CRA International, Inc. CRAI, or Charles River Associates, has had an impressive run over the past month. The stock has gained 16% compared to the 6.4% decline of its industry.
The company’s 2025 and 2026 earnings are expected to increase 5% and 6.4%, respectively, year over year.
Charles River Associates Price
Charles River Associates price | Charles River Associates Quote
CRAI’s Tailwinds
CRAI, as a relatively small player in the consulting and research services sector, presents a compelling narrative when evaluating its market position and growth potential. The company has carved out a niche with its strong reputation for delivering high-quality analytical and strategic consulting services across diverse industries. Despite its size, CRAI benefits from the growing demand for specialized advisory services in an increasingly complex global marketplace.
The company’s ability to attract top talent and focus on innovation and client-centered solutions positions it for significant growth. As industries grapple with rapid technological advancements, regulatory complexities, and evolving market dynamics, CRAI's expertise could see rising demand, allowing it to capture a larger share of its addressable market. Additionally, its proven track record of delivering value to clients may help it sustain long-term partnerships, further bolstering its growth trajectory.
Given the nature of the business, CRAI’s success depends on the talent that it can acquire and retain. The company has built and sustained a strong reputation for delivering high-quality consulting services driven by its highly qualified professionals. Around 74% of its senior staff hold advanced degrees, including doctorates, and are recognized field leaders. At the end of 2024, CRAI had 946 consulting staff, comprising 151 officers, 552 other senior staff and 243 junior staff.
Charles River returns value to shareholders through dividends and share repurchases. Over the years, the company has steadily increased its dividend payouts, paying $9.6 million in 2022, $10.8 million in 2023 and $12.3 million in 2024. Dividend per share has grown alongside, rising from $1.24 in 2022 to $1.44 in 2023 and 1.75 in 2024, reflecting a consistent commitment to enhancing shareholder returns.
Share repurchase activity has varied, with $27.6 million repurchased in 2022, $31.4 million in 2023 and $33.3 million in 2024. This consistency has persisted despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors and its confidence in the business’s long-term prospects.