4.28 USD
-0.09 (-2.06%)
4.3 USD
+0.02 (+0.47%)
PLCE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. PLCE has a bad profitability rating. Also its financial health evaluation is rather negative. PLCE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year PLCE has reported negative net income.
- PLCE had a positive operating cash flow in the past year.
- PLCE had negative earnings in 4 of the past 5 years.
- In multiple years PLCE reported negative operating cash flow during the last 5 years.
1.2 Ratios
- PLCE has a Return On Assets of -6.78%. This is in the lower half of the industry: PLCE underperforms 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.78% | ||
| ROE | N/A | ||
| ROIC | 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
1.3 Margins
- In the last couple of years the Operating Margin of PLCE has declined.
- PLCE's Gross Margin of 31.13% is on the low side compared to the rest of the industry. PLCE is outperformed by 63.93% of its industry peers.
- In the last couple of years the Gross Margin of PLCE has remained more or less at the same level.
- The Profit Margin and Operating Margin are not available for PLCE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 31.13% |
OM growth 3Y-50.48%
OM growth 5Y-19.85%
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
- PLCE has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PLCE has less shares outstanding
- Compared to 1 year ago, PLCE has a worse debt to assets ratio.
2.2 Solvency
- PLCE has an Altman-Z score of 1.24. This is a bad value and indicates that PLCE is not financially healthy and even has some risk of bankruptcy.
- PLCE's Altman-Z score of 1.24 is on the low side compared to the rest of the industry. PLCE is outperformed by 68.03% of its industry peers.
- The Debt to FCF ratio of PLCE is 10.18, which is on the high side as it means it would take PLCE, 10.18 years of fcf income to pay off all of its debts.
- PLCE has a Debt to FCF ratio of 10.18. This is comparable to the rest of the industry: PLCE outperforms 55.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 1.24 |
ROIC/WACCN/A
WACC8.28%
2.3 Liquidity
- PLCE has a Current Ratio of 0.92. This is a bad value and indicates that PLCE is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.92, PLCE is not doing good in the industry: 79.51% of the companies in the same industry are doing better.
- A Quick Ratio of 0.19 indicates that PLCE may have some problems paying its short term obligations.
- The Quick ratio of PLCE (0.19) is worse than 89.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
- PLCE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.20%, which is quite impressive.
- Measured over the past years, PLCE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.35% on average per year.
- Looking at the last year, PLCE shows a very negative growth in Revenue. The Revenue has decreased by -10.09% in the last year.
- Measured over the past years, PLCE shows a decrease in Revenue. The Revenue has been decreasing by -5.82% on average per year.
EPS 1Y (TTM)58.2%
EPS 3Y-68.73%
EPS 5Y-40.35%
EPS Q2Q%-108.82%
Revenue 1Y (TTM)-10.09%
Revenue growth 3Y-10.22%
Revenue growth 5Y-5.82%
Sales Q2Q%-13%
3.2 Future
- The Earnings Per Share is expected to grow by 23.11% on average over the next years. This is a very strong growth
- Based on estimates for the next years, PLCE will show a decrease in Revenue. The Revenue will decrease by -1.39% on average per year.
EPS Next Y-774.2%
EPS Next 2Y16.97%
EPS Next 3Y23.11%
EPS Next 5YN/A
Revenue Next Year-8.3%
Revenue Next 2Y-3.6%
Revenue Next 3Y-1.39%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- PLCE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- A Price/Forward Earnings ratio of 7.63 indicates a rather cheap valuation of PLCE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PLCE indicates a rather cheap valuation: PLCE is cheaper than 95.08% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PLCE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PLCE is valued a bit cheaper than 75.41% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PLCE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.39 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as PLCE's earnings are expected to grow with 23.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.97%
EPS Next 3Y23.11%
5. Dividend
5.1 Amount
- PLCE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CHILDREN'S PLACE INC/THE / PLCE FAQ
What is the ChartMill fundamental rating of CHILDREN'S PLACE INC/THE (PLCE) stock?
ChartMill assigns a fundamental rating of 2 / 10 to PLCE.
What is the valuation status of CHILDREN'S PLACE INC/THE (PLCE) stock?
ChartMill assigns a valuation rating of 5 / 10 to CHILDREN'S PLACE INC/THE (PLCE). This can be considered as Fairly Valued.
What is the profitability of PLCE stock?
CHILDREN'S PLACE INC/THE (PLCE) has a profitability rating of 1 / 10.
What is the earnings growth outlook for CHILDREN'S PLACE INC/THE?
The Earnings per Share (EPS) of CHILDREN'S PLACE INC/THE (PLCE) is expected to decline by -774.2% in the next year.
How sustainable is the dividend of CHILDREN'S PLACE INC/THE (PLCE) stock?
The dividend rating of CHILDREN'S PLACE INC/THE (PLCE) is 0 / 10 and the dividend payout ratio is 0%.