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The Children's Place, Inc.

  • Market Cap: Micro Cap
  • Industry: Footwear
  • ISIN: US1689051076
  • NASDAQ: PLCE
USD
2.22
0.01 (0.45%)

Sep 24

NAS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Boot Barn Holdings, Inc.
Victoria's Secret & Co.
Genesco, Inc.
The Buckle, Inc.
Zumiez, Inc.
Caleres, Inc.
Winmark Corp.
Shoe Carnival, Inc.
Foot Locker, Inc.
The Children's Place, Inc.
Chico's FAS, Inc.

Why is The Children's Place, Inc. ?

1
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 -3.79% and Operating profit at 14.20% over the last 5 years
  • The company has a negative book value of Rs 8.61 crore
2
The company has declared Negative results for the last 4 consecutive quarters
  • NET SALES(Q) At USD 241.8 MM has Fallen at -18.17%
  • CASH AND EQV(HY) Lowest at USD 11.96 MM
  • DEBT-EQUITY RATIO (HY) Highest at -442.8 %
3
Risky -
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of -66.46%, its profits have risen by 58.6%
4
Reducing Promoter Confidence
  • Promoters have decreased their stake in the company by -1.22% over the previous quarter and currently hold 62.62% of the company
  • Promoters decreasing their stake may signify reduced confidence in the future of the business
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -66.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
-66.41%
-0.83
93.54%
S&P 500
16.06%
1.20
13.17%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-3.79%
EBIT Growth (5y)
14.20%
EBIT to Interest (avg)
3.24
Debt to EBITDA (avg)
3.71
Net Debt to Equity (avg)
301.39
Sales to Capital Employed (avg)
3.21
Tax Ratio
16.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
90.55%
ROCE (avg)
12.30%
ROE (avg)
21.52%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
-8.13
EV to EBIT
-78.87
EV to EBITDA
20.37
EV to Capital Employed
1.18
EV to Sales
0.41
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.49%
ROE (Latest)
Negative BV
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Bearish
Bearish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

6What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 49.25 MM

NET PROFIT(HY)

Higher at USD -75.98 MM

RAW MATERIAL COST(Y)

Fallen by -1.35% (YoY

-25What is not working for the Company
NET SALES(Q)

At USD 241.8 MM has Fallen at -18.17%

CASH AND EQV(HY)

Lowest at USD 11.96 MM

DEBT-EQUITY RATIO (HY)

Highest at -442.8 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.41 times

INTEREST(Q)

Highest at USD 17.9 MM

PRE-TAX PROFIT(Q)

At USD -29.19 MM has Fallen at -19.54%

NET PROFIT(Q)

At USD -28.85 MM has Fallen at -20.68%

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

Operating Cash Flow
Highest at USD 49.25 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost
Fallen by -1.35% (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 241.8 MM has Fallen at -18.17%
over average net sales of the previous four periods of USD 295.48 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (USD MM)

Interest
At USD 17.9 MM has Grown at 252.54%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest
Highest at USD 17.9 MM
in the last five periods and Increased by 252.54% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit
At USD -29.19 MM has Fallen at -19.54%
over average net sales of the previous four periods of USD -24.42 MM
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit
At USD -28.85 MM has Fallen at -20.68%
over average net sales of the previous four periods of USD -23.9 MM
MOJO Watch
Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv
Lowest at USD 11.96 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at -442.8 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio
Lowest at 16.41 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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