CHILDREN'S PLACE INC/THE (PLCE) Stock Fundamental Analysis
NASDAQ:PLCE - Nasdaq - US1689051076 - Common Stock - Currency: USD
Taking everything into account, PLCE scores 2 out of 10 in our fundamental rating. PLCE was compared to 120 industry peers in the Specialty Retail industry. PLCE has a bad profitability rating. Also its financial health evaluation is rather negative. PLCE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PLCE had positive earnings in the past year.
PLCE had a negative operating cash flow in the past year.
In the past 5 years PLCE reported 4 times negative net income.
In multiple years PLCE reported negative operating cash flow during the last 5 years.
1.2 Ratios
PLCE's Return On Assets of -7.73% is on the low side compared to the rest of the industry. PLCE is outperformed by 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.27%, PLCE is in line with its industry, outperforming 57.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.73% | ||
| ROE | N/A | ||
| ROIC | 5.27% |
ROA(3y)-9.05%
ROA(5y)-4.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 2.29%, PLCE perfoms like the industry average, outperforming 50.83% of the companies in the same industry.
In the last couple of years the Operating Margin of PLCE has declined.
Looking at the Gross Margin, with a value of 33.14%, PLCE is doing worse than 60.83% of the companies in the same industry.
In the last couple of years the Gross Margin of PLCE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.29% | ||
| PM (TTM) | N/A | ||
| GM | 33.14% |
OM growth 3Y-47.62%
OM growth 5Y-17.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.27%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
PLCE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PLCE has more shares outstanding
PLCE has less shares outstanding than it did 5 years ago.
PLCE has a worse debt/assets ratio than last year.
2.2 Solvency
PLCE has an Altman-Z score of 1.65. This is a bad value and indicates that PLCE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, PLCE is doing worse than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC0.59
WACC8.99%
2.3 Liquidity
PLCE has a Current Ratio of 0.90. This is a bad value and indicates that PLCE is not financially healthy enough and could expect problems in meeting its short term obligations.
PLCE's Current ratio of 0.90 is on the low side compared to the rest of the industry. PLCE is outperformed by 78.33% of its industry peers.
PLCE has a Quick Ratio of 0.90. This is a bad value and indicates that PLCE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.13, PLCE is doing worse than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.95% over the past year.
The earnings per share for PLCE have been decreasing by -40.35% on average. This is quite bad
The Revenue for PLCE has decreased by -13.49% in the past year. This is quite bad
The Revenue has been decreasing by -5.82% on average over the past years.
EPS 1Y (TTM)104.95%
EPS 3Y-68.73%
EPS 5Y-40.35%
EPS Q2Q%89.84%
Revenue 1Y (TTM)-13.49%
Revenue growth 3Y-10.22%
Revenue growth 5Y-5.82%
Sales Q2Q%-10.21%
3.2 Future
The Earnings Per Share is expected to grow by 39.87% on average over the next years. This is a very strong growth
PLCE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.14% yearly.
EPS Next Y127.63%
EPS Next 2Y68.41%
EPS Next 3Y39.87%
EPS Next 5YN/A
Revenue Next Year-0.58%
Revenue Next 2Y-0.98%
Revenue Next 3Y-0.14%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PLCE is valuated correctly with a Price/Earnings ratio of 15.10.
75.83% of the companies in the same industry are more expensive than PLCE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.17, PLCE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 6.63, the valuation of PLCE can be described as very cheap.
Based on the Price/Forward Earnings ratio, PLCE is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, PLCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
PLCE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PLCE is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.06 |
4.3 Compensation for Growth
PLCE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PLCE's earnings are expected to grow with 39.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y68.41%
EPS Next 3Y39.87%
5. Dividend
5.1 Amount
PLCE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.19
+0.34 (+5.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners85.18%
Inst Owner Change67.2%
Ins Owners2.14%
Ins Owner Change44.12%
Market Cap136.43M
Analysts45.71
Price Target7.14 (15.35%)
Short Float %14.73%
Short Ratio6.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-202.94%
Min EPS beat(2)-388.35%
Max EPS beat(2)-17.53%
EPS beat(4)1
Avg EPS beat(4)-69.93%
Min EPS beat(4)-388.35%
Max EPS beat(4)126.74%
EPS beat(8)2
Avg EPS beat(8)-78.8%
EPS beat(12)3
Avg EPS beat(12)-76.64%
EPS beat(16)7
Avg EPS beat(16)255.18%
Revenue beat(2)1
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-9.51%
Max Revenue beat(2)5.19%
Revenue beat(4)1
Avg Revenue beat(4)-5.46%
Min Revenue beat(4)-13.26%
Max Revenue beat(4)5.19%
Revenue beat(8)2
Avg Revenue beat(8)-3.92%
Revenue beat(12)2
Avg Revenue beat(12)-3.92%
Revenue beat(16)3
Avg Revenue beat(16)-2.87%
PT rev (1m)-22.22%
PT rev (3m)-36.36%
EPS NQ rev (1m)-34.04%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-50.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 6.63 | ||
| P/S | 0.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.06 |
EPS(TTM)0.41
EY6.62%
EPS(NY)0.93
Fwd EY15.08%
FCF(TTM)-6.05
FCFYN/A
OCF(TTM)-5.34
OCFYN/A
SpS62.9
BVpS-2.7
TBVpS-3.29
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.73% | ||
| ROE | N/A | ||
| ROCE | 13.82% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 5.48% | ||
| OM | 2.29% | ||
| PM (TTM) | N/A | ||
| GM | 33.14% | ||
| FCFM | N/A |
ROA(3y)-9.05%
ROA(5y)-4.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-51.72%
ROICexcg growth 5Y-17.19%
ROICexc growth 3Y-49.95%
ROICexc growth 5Y-15.72%
OM growth 3Y-47.62%
OM growth 5Y-17.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.27%
GM growth 5Y-1.1%
F-Score4
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 39.96% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 1.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 1.65 |
F-Score4
WACC8.99%
ROIC/WACC0.59
Cap/Depr(3y)62.3%
Cap/Depr(5y)56.63%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)104.95%
EPS 3Y-68.73%
EPS 5Y-40.35%
EPS Q2Q%89.84%
EPS Next Y127.63%
EPS Next 2Y68.41%
EPS Next 3Y39.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.49%
Revenue growth 3Y-10.22%
Revenue growth 5Y-5.82%
Sales Q2Q%-10.21%
Revenue Next Year-0.58%
Revenue Next 2Y-0.98%
Revenue Next 3Y-0.14%
Revenue Next 5YN/A
EBIT growth 1Y237.39%
EBIT growth 3Y-52.98%
EBIT growth 5Y-21.93%
EBIT Next Year42.82%
EBIT Next 3Y18.59%
EBIT Next 5YN/A
FCF growth 1Y-304.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-226.72%
OCF growth 3YN/A
OCF growth 5YN/A