The Children's Place, Inc. (PLCE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Boot Barn Holdings, Inc.

Zumiez, Inc.

The Buckle, Inc.

Shoe Carnival, Inc.

Genesco, Inc.

Winmark Corp.

Victoria's Secret & Co.

The Children's Place, Inc.

Caleres, Inc.

Foot Locker, Inc.

Chico's FAS, Inc.

Why is The Children's Place, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -4.23% and Operating profit at 17.25% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Jul 25

CASH AND EQV(HY) Lowest at USD 13.49 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 1.96 times
DEBTORS TURNOVER RATIO(HY) Lowest at 23.03 times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -51.78%, its profits have risen by 75.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -51.78% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Children's Place, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Children's Place, Inc.

-38.53%

-0.20

106.51%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.23%

EBIT Growth (5y)

17.25%

EBIT to Interest (avg)

3.24

Debt to EBITDA (avg)

3.71

Net Debt to Equity (avg)

301.39

Sales to Capital Employed (avg)

3.23

Tax Ratio

16.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.30%

ROE (avg)

21.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-2.55

EV to EBIT

36.05

EV to EBITDA

10.98

EV to Capital Employed

1.51

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

4.19%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.81% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -11,471.95 %

PRE-TAX PROFIT(Q)

At USD -1.91 MM has Grown at 56.49%

NET PROFIT(Q)

At USD -3.37 MM has Grown at 46.6%

-4What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 13.49 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.96 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 23.03 times

NET SALES(Q)

At USD 298.01 MM has Fallen at -12.38%

Here's what is working for The Children's Place, Inc.

Pre-Tax Profit

At USD -1.91 MM has Grown at 56.49%

over average net sales of the previous four periods of USD -4.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -3.37 MM has Grown at 46.6%

over average net sales of the previous four periods of USD -6.3 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -11,471.95 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.81% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for The Children's Place, Inc.

Net Sales

At USD 298.01 MM has Fallen at -12.38%

over average net sales of the previous four periods of USD 340.13 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 13.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 23.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio