CRA International (CRAI) Shares Tumble 24.7% as Cash Flow Concerns Mount

CRA International (NASDAQ: CRAI) shares have plunged 24.7% over the past six months to $142.58, testing investor confidence as the consulting firm’s solid earnings growth clashes with a sharp decline in free cash flow. The company posted 7.8% annualized revenue growth over five years, and earnings per share rose at a 15.5% compound annual rate, signaling improving profitability. However, free cash flow margin fell to negative 2.2% for the trailing 12 months, a decline of 11.1 percentage points from five years ago, suggesting potential heavy investment or working capital strains. At the current price, the stock trades at a forward price-to-earnings ratio of 15.8, but the negative cash flow raises questions about the durability of returns.