Chico's FAS Stock Analysis, Valuation (NYSE:CHS)

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$8.35 $0.21 (2.45%) CHS stock closing price Sep 21, 2018 (Closing)

Watch the robo advisor video of Chico's FAS stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for CHS stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Chico's FAS, Inc. Stock Rating 3.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CHS stock analysis. We compare Chico's FAS valuation with its sector peers to gauge relative attractiveness of CHS stock. Our Chico's FAS stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy CHS stock?

  • Chico's FAS has a lower debt burden than its peers in the Retail-Wholesale sector, with a debt/equity ratio of 0.1.
  • The company has an operating cash flow which is 2.1345 times the net income. We see this as a positive signal.
  • CHS stock is trading at an earnings multiple of 15.5 which is better than the sector average of 21.4.
  • CHS stock is trading at a favorable price to sales multiple of 0.6 as against the Retail-Wholesale sector average multiple of 0.8.
  • Chico's FAS has an attractive ROIC (Return on Invested Capital) of 15.9
  • Chico's FAS has a healthy FCF (Free Cash Flow) margin of 9.2.

Should you sell CHS stock?

  • Chico's FAS revenue saw a decline of -3.8% YoY in 2018-04.
  • Sales declined by -2.8 annually over the last 5 years.

Comments on this video and Chico's FAS stock

Investors can use Amigobulls Chico's FAS stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Chico's FAS revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of CHS technical analysis to check whether the fundamental story is reflected in the market sentiment.