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CHILDREN'S PLACE INC/THE (PLCE) Stock Fundamental Analysis

NASDAQ:PLCE - Nasdaq - US1689051076 - Common Stock - Currency: USD

5.71  -0.03 (-0.52%)

After market: 5.85 +0.14 (+2.45%)

Fundamental Rating

2

Taking everything into account, PLCE scores 2 out of 10 in our fundamental rating. PLCE was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of PLCE have multiple concerns. PLCE has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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1

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.
PLCE Yearly Net Income VS EBIT VS OCF VS FCFPLCE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

The Return On Assets of PLCE (-20.10%) is worse than 82.64% of its industry peers.
Industry RankSector Rank
ROA -20.1%
ROE N/A
ROIC N/A
ROA(3y)-0.46%
ROA(5y)-1.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
PLCE Yearly ROA, ROE, ROICPLCE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K

1.3 Margins

The Gross Margin of PLCE (30.84%) is worse than 61.16% of its industry peers.
PLCE's Gross Margin has declined in the last couple of years.
PLCE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 30.84%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.71%
GM growth 5Y-4.66%
PLCE Yearly Profit, Operating, Gross MarginsPLCE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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0

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
PLCE Yearly Shares OutstandingPLCE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
PLCE Yearly Total Debt VS Total AssetsPLCE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of 1.30, we must say that PLCE is in the distress zone and has some risk of bankruptcy.
PLCE has a worse Altman-Z score (1.30) than 65.29% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z 1.3
ROIC/WACCN/A
WACC9.11%
PLCE Yearly LT Debt VS Equity VS FCFPLCE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

A Current Ratio of 0.93 indicates that PLCE may have some problems paying its short term obligations.
With a Current ratio value of 0.93, PLCE is not doing good in the industry: 79.34% of the companies in the same industry are doing better.
A Quick Ratio of 0.17 indicates that PLCE may have some problems paying its short term obligations.
PLCE's Quick ratio of 0.17 is on the low side compared to the rest of the industry. PLCE is outperformed by 90.08% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.17
PLCE Yearly Current Assets VS Current LiabilitesPLCE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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3

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
EPS 1Y (TTM)104.95%
EPS 3Y-68.73%
EPS 5Y-40.35%
EPS Q2Q%89.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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
Based on estimates for the next years, PLCE will show a decrease in Revenue. The Revenue will decrease by -1.09% on average per year.
EPS Next Y127.63%
EPS Next 2Y68.41%
EPS Next 3Y39.87%
EPS Next 5YN/A
Revenue Next Year-1.8%
Revenue Next 2Y-1.09%
Revenue Next 3YN/A
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.
PLCE Yearly Revenue VS EstimatesPLCE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
PLCE Yearly EPS VS EstimatesPLCE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 5 -5 10

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.93, PLCE is valued correctly.
PLCE's Price/Earnings ratio is a bit cheaper when compared to the industry. PLCE is cheaper than 72.73% of the companies in the same industry.
PLCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 6.12, the valuation of PLCE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLCE indicates a rather cheap valuation: PLCE is cheaper than 93.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, PLCE is valued rather cheaply.
Industry RankSector Rank
PE 13.93
Fwd PE 6.12
PLCE Price Earnings VS Forward Price EarningsPLCE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

75.21% of the companies in the same industry are more expensive than PLCE, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.8
PLCE Per share dataPLCE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

The 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)0.11
PEG (5Y)N/A
EPS Next 2Y68.41%
EPS Next 3Y39.87%

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0

5. Dividend

5.1 Amount

No dividends for PLCE!.
Industry RankSector Rank
Dividend Yield N/A

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CHILDREN'S PLACE INC/THE

NASDAQ:PLCE (4/17/2025, 8:00:00 PM)

After market: 5.85 +0.14 (+2.45%)

5.71

-0.03 (-0.52%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-11 2025-04-11/amc
Earnings (Next)06-10 2025-06-10/bmo
Inst Owners85.18%
Inst Owner Change-0.02%
Ins Owners2.14%
Ins Owner Change45.29%
Market Cap72.97M
Analysts45.71
Price Target9.18 (60.77%)
Short Float %22.27%
Short Ratio7.34
Dividend
Industry RankSector 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)1
Avg EPS beat(2)54.61%
Min EPS beat(2)-17.53%
Max EPS beat(2)126.74%
EPS beat(4)1
Avg EPS beat(4)-56.81%
Min EPS beat(4)-335.86%
Max EPS beat(4)126.74%
EPS beat(8)3
Avg EPS beat(8)-29.34%
EPS beat(12)4
Avg EPS beat(12)-43.95%
EPS beat(16)8
Avg EPS beat(16)312.66%
Revenue beat(2)0
Avg Revenue beat(2)-6.89%
Min Revenue beat(2)-9.51%
Max Revenue beat(2)-4.27%
Revenue beat(4)0
Avg Revenue beat(4)-7.48%
Min Revenue beat(4)-13.26%
Max Revenue beat(4)-2.88%
Revenue beat(8)1
Avg Revenue beat(8)-4.79%
Revenue beat(12)1
Avg Revenue beat(12)-4.97%
Revenue beat(16)3
Avg Revenue beat(16)-2.54%
PT rev (1m)-18.18%
PT rev (3m)-40%
EPS NQ rev (1m)-7.27%
EPS NQ rev (3m)-71.98%
EPS NY rev (1m)1.4%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-9.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 13.93
Fwd PE 6.12
P/S 0.05
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 5.8
EPS(TTM)0.41
EY7.18%
EPS(NY)0.93
Fwd EY16.35%
FCF(TTM)-9.59
FCFYN/A
OCF(TTM)-8.1
OCFYN/A
SpS112.11
BVpS-3.88
TBVpS-4.9
PEG (NY)0.11
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -20.1%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 30.84%
FCFM N/A
ROA(3y)-0.46%
ROA(5y)-1.5%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.71%
GM growth 5Y-4.66%
F-Score4
Asset Turnover1.61
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 13.16
Cap/Depr 45.45%
Cap/Sales 1.33%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.93
Quick Ratio 0.17
Altman-Z 1.3
F-Score4
WACC9.11%
ROIC/WACCN/A
Cap/Depr(3y)65.71%
Cap/Depr(5y)84.6%
Cap/Sales(3y)1.97%
Cap/Sales(5y)3.02%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.21%
Revenue Next Year-1.8%
Revenue Next 2Y-1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year709.66%
EBIT Next 3Y108.8%
EBIT Next 5YN/A
FCF growth 1Y-1278.83%
FCF growth 3YN/A
FCF growth 5Y-1.06%
OCF growth 1Y-311.62%
OCF growth 3YN/A
OCF growth 5Y-7.88%