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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Boot Barn Holdings, Inc.

The Buckle, Inc.

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Genesco, Inc.

Victoria's Secret & Co.

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. ?

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

The company has declared negative results for the last 3 consecutive quarters

RAW MATERIAL COST(Y) Grown by 16.71% (YoY)
CASH AND EQV(HY) Lowest at USD 10.27 MM
NET SALES(Q) Lowest at USD 215.22 MM

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 -18.45%, its profits have risen by 58.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.45% 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.

-18.45%

-0.69

100.59%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

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

Pledged Shares

Institutional Holding

90.55%

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

-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

Dividend Yield

ROCE (Latest)

-1.49%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -3.41 MM

-29What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.71% (YoY

CASH AND EQV(HY)

Lowest at USD 10.27 MM

NET SALES(Q)

Lowest at USD 215.22 MM

OPERATING PROFIT(Q)

Lowest at USD -34.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -15.83 %

PRE-TAX PROFIT(Q)

Lowest at USD -45.81 MM

NET PROFIT(Q)

Lowest at USD -47.13 MM

EPS(Q)

Lowest at USD -2.4

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

Operating Cash Flow

Highest at USD -3.41 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

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

Net Sales

At USD 215.22 MM has Fallen at -28.78%

over average net sales of the previous four periods of USD 302.21 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -45.81 MM has Fallen at -117.03%

over average net sales of the previous four periods of USD -21.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -47.13 MM has Fallen at -128.77%

over average net sales of the previous four periods of USD -20.6 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 215.22 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD -34.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -15.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -45.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -47.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -2.4

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 10.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 16.71% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales