Chicos FAS Inc (CHS) Stock Fundamental Analysis
NYSE:CHS - New York Stock Exchange, Inc. - US1686151028 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CHS. CHS was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of CHS get a neutral evaluation. Nothing too spectacular is happening here. CHS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CHS was profitable.
CHS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CHS reported negative net income in multiple years.
CHS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.82%, CHS is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.40%, CHS is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
CHS has a Return On Invested Capital of 12.31%. This is in the better half of the industry: CHS outperforms 77.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 26.4% | ||
| ROIC | 12.31% |
ROA(3y)-5.09%
ROA(5y)-2.53%
ROE(3y)-55.05%
ROE(5y)-32.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CHS's Profit Margin of 5.29% is fine compared to the rest of the industry. CHS outperforms 72.87% of its industry peers.
In the last couple of years the Profit Margin of CHS has grown nicely.
CHS has a better Operating Margin (6.16%) than 68.22% of its industry peers.
CHS's Operating Margin has improved in the last couple of years.
CHS has a Gross Margin (38.94%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CHS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 5.29% | ||
| GM | 38.94% |
OM growth 3YN/A
OM growth 5Y1.58%
PM growth 3YN/A
PM growth 5Y3.25%
GM growth 3Y4.35%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHS is creating some value.
CHS has more shares outstanding than it did 1 year ago.
CHS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CHS has an improved debt to assets ratio.
2.2 Solvency
CHS has an Altman-Z score of 3.22. This indicates that CHS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CHS (3.22) is better than 70.54% of its industry peers.
The Debt to FCF ratio of CHS is 0.42, which is an excellent value as it means it would take CHS, only 0.42 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.42, CHS belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
CHS has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
CHS has a better Debt to Equity ratio (0.06) than 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.34
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CHS should not have too much problems paying its short term obligations.
CHS has a worse Current ratio (1.20) than 72.09% of its industry peers.
CHS has a Quick Ratio of 1.20. This is a bad value and indicates that CHS is not financially healthy enough and could expect problems in meeting its short term obligations.
CHS has a Quick ratio of 0.42. This is in the lower half of the industry: CHS underperforms 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for CHS have decreased strongly by -15.38% in the last year.
CHS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.10% yearly.
The Revenue has decreased by -0.24% in the past year.
The Revenue has been decreasing by -1.26% on average over the past years.
EPS 1Y (TTM)-15.38%
EPS 3YN/A
EPS 5Y4.1%
EPS Q2Q%-45%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.67%
Revenue growth 5Y-1.26%
Sales Q2Q%-2.54%
3.2 Future
Based on estimates for the next years, CHS will show a decrease in Earnings Per Share. The EPS will decrease by -8.47% on average per year.
Based on estimates for the next years, CHS will show a small growth in Revenue. The Revenue will grow by 0.60% on average per year.
EPS Next Y-18.51%
EPS Next 2Y-8.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.79%
Revenue Next 2Y0.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
CHS is valuated reasonably with a Price/Earnings ratio of 9.86.
Based on the Price/Earnings ratio, CHS is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
CHS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 10.29, the valuation of CHS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CHS is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, CHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHS is valued cheaper than 85.27% of the companies in the same industry.
CHS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHS is cheaper than 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
The decent profitability rating of CHS may justify a higher PE ratio.
A cheap valuation may be justified as CHS's earnings are expected to decrease with -8.47% in the coming years.
PEG (NY)N/A
PEG (5Y)2.41
EPS Next 2Y-8.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CHS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.59
-0.01 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners0.13%
Inst Owner Change0%
Ins Owners3.85%
Ins Owner Change0%
Market Cap937.06M
Analysts46.67
Price Target7.75 (2.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.66%
Min EPS beat(2)2.68%
Max EPS beat(2)14.64%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-2.73%
Max Revenue beat(2)-2.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.73%
Max Revenue beat(4)1.35%
Revenue beat(8)4
Avg Revenue beat(8)0.55%
Revenue beat(12)7
Avg Revenue beat(12)2.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.44 | ||
| P/FCF | 16.37 | ||
| P/OCF | 8.25 | ||
| P/B | 2.22 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)0.77
EY10.14%
EPS(NY)0.74
Fwd EY9.71%
FCF(TTM)0.46
FCFY6.11%
OCF(TTM)0.92
OCFY12.11%
SpS17.08
BVpS3.42
TBVpS3.25
PEG (NY)N/A
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 26.4% | ||
| ROCE | 15.79% | ||
| ROIC | 12.31% | ||
| ROICexc | 14.55% | ||
| ROICexgc | 15.01% | ||
| OM | 6.16% | ||
| PM (TTM) | 5.29% | ||
| GM | 38.94% | ||
| FCFM | 2.71% |
ROA(3y)-5.09%
ROA(5y)-2.53%
ROE(3y)-55.05%
ROE(5y)-32.32%
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 3YN/A
ROICexcg growth 5Y-2.56%
ROICexc growth 3YN/A
ROICexc growth 5Y1.76%
OM growth 3YN/A
OM growth 5Y1.58%
PM growth 3YN/A
PM growth 5Y3.25%
GM growth 3Y4.35%
GM growth 5Y0.65%
F-Score5
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.42 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 134.65% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 35.98 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 51.32% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 3.22 |
F-Score5
WACC9.19%
ROIC/WACC1.34
Cap/Depr(3y)46.44%
Cap/Depr(5y)47.4%
Cap/Sales(3y)1.18%
Cap/Sales(5y)1.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.38%
EPS 3YN/A
EPS 5Y4.1%
EPS Q2Q%-45%
EPS Next Y-18.51%
EPS Next 2Y-8.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y1.67%
Revenue growth 5Y-1.26%
Sales Q2Q%-2.54%
Revenue Next Year0.79%
Revenue Next 2Y0.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.35%
EBIT growth 3YN/A
EBIT growth 5Y0.3%
EBIT Next Year18.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.25%
FCF growth 3YN/A
FCF growth 5Y0.2%
OCF growth 1Y108.67%
OCF growth 3Y69.3%
OCF growth 5Y-0.64%