CHILDREN'S PLACE INC/THE (PLCE) Stock Fundamental Analysis
NASDAQ:PLCE - US1689051076 - Common Stock
5.2 USD
+0.13 (+2.56%)
5.24 USD
+0.04 (+0.77%)
We assign a fundamental rating of 2 out of 10 to PLCE. PLCE was compared to 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
In the past year PLCE was profitable.
PLCE had a negative operating cash flow in the past year.
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
PLCE has a Return On Assets of -6.93%. This is in the lower half of the industry: PLCE underperforms 71.54% of its industry peers.
With a Return On Equity value of -3819.58%, PLCE is not doing good in the industry: 81.30% of the companies in the same industry are doing better.
PLCE has a Return On Invested Capital (4.96%) which is in line with its industry peers.
| 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
PLCE's Operating Margin of 2.28% is in line compared to the rest of the industry. PLCE outperforms 54.47% of its industry peers.
In the last couple of years the Operating Margin of PLCE has declined.
With a Gross Margin value of 32.16%, PLCE is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLCE is destroying value.
The number of shares outstanding for PLCE has been increased compared to 1 year ago.
PLCE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PLCE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that PLCE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PLCE (1.49) is worse than 62.60% 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.
Looking at the Debt to Equity ratio, with a value of 258.40, PLCE is doing worse than 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 258.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.58
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.92 indicates that PLCE may have some problems paying its short term obligations.
The Current ratio of PLCE (0.92) is worse than 75.61% of its industry peers.
PLCE has a Quick 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.
The Quick ratio of PLCE (0.14) is worse than 91.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
PLCE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.94%, which is quite impressive.
The earnings per share for PLCE have been decreasing by -40.35% on average. This is quite bad
PLCE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.15%.
The Revenue has been decreasing by -5.82% on average over the past years.
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
PLCE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.84% yearly.
PLCE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.43% yearly.
EPS Next Y-398.54%
EPS Next 2Y5.81%
EPS Next 3Y37.84%
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
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.
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
A Price/Earnings ratio of 74.29 indicates a quite expensive valuation of PLCE.
PLCE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.90. PLCE is valued rather expensively when compared to this.
PLCE is valuated reasonably with a Price/Forward Earnings ratio of 11.33.
PLCE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLCE is cheaper than 80.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, PLCE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.29 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLCE is valued cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PLCE's earnings are expected to grow with 37.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.81%
EPS Next 3Y37.84%
5. Dividend
5.1 Amount
PLCE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.2
+0.13 (+2.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.97%
Inst Owner Change1.7%
Ins Owners0.77%
Ins Owner Change21.87%
Market Cap115.28M
Analysts43.33
Price Target6.12 (17.69%)
Short Float %15.59%
Short Ratio4.81
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)-322.22%
EPS NY rev (3m)-231.15%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-8.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.29 | ||
| Fwd PE | 11.33 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 81.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.22 |
EPS(TTM)0.07
EY1.35%
EPS(NY)0.46
Fwd EY8.83%
FCF(TTM)-2.9
FCFYN/A
OCF(TTM)-2.25
OCFYN/A
SpS61.37
BVpS0.06
TBVpS-0.52
PEG (NY)N/A
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 | 1.49 |
F-Score5
WACC8.62%
ROIC/WACC0.58
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 Y-398.54%
EPS Next 2Y5.81%
EPS Next 3Y37.84%
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 3Y16.54%
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