CHILDREN'S PLACE INC/THE (PLCE) Stock Fundamental Analysis
NASDAQ:PLCE - Nasdaq - US1689051076 - Common Stock - Currency: USD
Overall PLCE gets a fundamental rating of 2 out of 10. We evaluated PLCE against 123 industry peers in the Specialty Retail industry. PLCE has a bad profitability rating. Also its financial health evaluation is rather negative. PLCE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PLCE had positive earnings in the past year.
In the past year PLCE has reported a negative cash flow from operations.
In the past 5 years PLCE reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: PLCE reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -6.93%, PLCE is not doing good in the industry: 71.54% of the companies in the same industry are doing better.
The Return On Equity of PLCE (-3819.58%) is worse than 80.49% of its industry peers.
With a Return On Invested Capital value of 4.96%, PLCE perfoms like the industry average, outperforming 56.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.93% | ||
| ROE | -3819.58% | ||
| ROIC | 4.96% |
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 2.28%, PLCE perfoms like the industry average, outperforming 52.85% of the companies in the same industry.
PLCE's Operating Margin has declined in the last couple of years.
PLCE has a worse Gross Margin (32.16%) than 60.16% of its industry peers.
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 | 2.28% | ||
| PM (TTM) | N/A | ||
| GM | 32.16% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLCE is destroying value.
Compared to 1 year ago, PLCE has more shares outstanding
Compared to 5 years ago, PLCE has less shares outstanding
The debt/assets ratio for PLCE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that PLCE is in the distress zone and has some risk of bankruptcy.
PLCE has a Altman-Z score of 1.48. This is in the lower half of the industry: PLCE underperforms 66.67% of its industry peers.
PLCE has a Debt/Equity ratio of 258.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PLCE (258.40) is worse than 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 258.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.6
WACC8.34%
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: 75.61% of the companies in the same industry are doing better.
A Quick Ratio of 0.14 indicates that PLCE may have some problems paying its short term obligations.
PLCE has a Quick ratio of 0.14. This is amonst the worse of the industry: PLCE underperforms 91.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.94% 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 -12.15% in the past year. This is quite bad
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)100.94%
EPS 3Y-68.73%
EPS 5Y-40.35%
EPS Q2Q%-28.81%
Revenue 1Y (TTM)-12.15%
Revenue growth 3Y-10.22%
Revenue growth 5Y-5.82%
Sales Q2Q%-9.61%
3.2 Future
The Earnings Per Share is expected to grow by 37.72% 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 -0.43% on average per year.
EPS Next Y34.34%
EPS Next 2Y5.81%
EPS Next 3Y37.72%
EPS Next 5YN/A
Revenue Next Year-6.49%
Revenue Next 2Y-2.59%
Revenue Next 3Y-0.43%
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.
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
With a Price/Earnings ratio of 62.86, PLCE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PLCE is on the same level as its industry peers.
PLCE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.48.
PLCE is valuated reasonably with a Price/Forward Earnings ratio of 9.59.
PLCE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLCE is cheaper than 82.11% of the companies in the same industry.
PLCE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.86 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLCE is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PLCE's earnings are expected to grow with 37.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y5.81%
EPS Next 3Y37.72%
5. Dividend
5.1 Amount
No dividends for PLCE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.4
-0.18 (-3.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.97%
Inst Owner Change-0.85%
Ins Owners0.77%
Ins Owner Change5.52%
Market Cap97.55M
Analysts43.33
Price Target6.12 (39.09%)
Short Float %16.8%
Short Ratio3.88
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)-290.27%
Min EPS beat(2)-388.35%
Max EPS beat(2)-192.19%
EPS beat(4)1
Avg EPS beat(4)-117.83%
Min EPS beat(4)-388.35%
Max EPS beat(4)126.74%
EPS beat(8)2
Avg EPS beat(8)-101.93%
EPS beat(12)3
Avg EPS beat(12)-90.21%
EPS beat(16)6
Avg EPS beat(16)-55.08%
Revenue beat(2)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-8.92%
Max Revenue beat(2)5.19%
Revenue beat(4)1
Avg Revenue beat(4)-4.38%
Min Revenue beat(4)-9.51%
Max Revenue beat(4)5.19%
Revenue beat(8)2
Avg Revenue beat(8)-4.18%
Revenue beat(12)2
Avg Revenue beat(12)-3.71%
Revenue beat(16)2
Avg Revenue beat(16)-4.69%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-123.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-40.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.86 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 68.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.96 |
EPS(TTM)0.07
EY1.59%
EPS(NY)0.46
Fwd EY10.43%
FCF(TTM)-2.9
FCFYN/A
OCF(TTM)-2.25
OCFYN/A
SpS61.37
BVpS0.06
TBVpS-0.52
PEG (NY)1.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.93% | ||
| ROE | -3819.58% | ||
| ROCE | 13.17% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 5.16% | ||
| OM | 2.28% | ||
| PM (TTM) | N/A | ||
| GM | 32.16% | ||
| 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-54.35%
ROICexcg growth 5Y-19.93%
ROICexc growth 3Y-52.68%
ROICexc growth 5Y-18.51%
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%
F-Score5
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 258.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.43 | ||
| Cap/Depr | 40.18% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 1.27 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 1.48 |
F-Score5
WACC8.34%
ROIC/WACC0.6
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)100.94%
EPS 3Y-68.73%
EPS 5Y-40.35%
EPS Q2Q%-28.81%
EPS Next Y34.34%
EPS Next 2Y5.81%
EPS Next 3Y37.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.15%
Revenue growth 3Y-10.22%
Revenue growth 5Y-5.82%
Sales Q2Q%-9.61%
Revenue Next Year-6.49%
Revenue Next 2Y-2.59%
Revenue Next 3Y-0.43%
Revenue Next 5YN/A
EBIT growth 1Y216.99%
EBIT growth 3Y-55.54%
EBIT growth 5Y-24.51%
EBIT Next Year-19.83%
EBIT Next 3Y16.46%
EBIT Next 5YN/A
FCF growth 1Y-113.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-417.17%
OCF growth 3YN/A
OCF growth 5YN/A