Children's Place Stock Analysis, Valuation (NASDAQ:PLCE)

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$128.65 $1.45 (1.11%) PLCE stock closing price Apr 19, 2018 (Closing)
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Children's Place
Updated on : Apr 19, 2018
previous close
PLCE 128.7 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Apparel-Shoe
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.7%
Operating Profit
Operating Margin:
8.6%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
42.9M
Debt/Equity Ratio:
 0.09
Compared to the industry
Cash Flow
Operating cash flow:
$84.4M
Net Income:
-$9.9M
Dividend Yield
PLCE dividend yield:
1.24%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
FCF Margin
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PLCE PS :
1.2
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
27.9%
Return on Equity:
17.1%
Free Cash Flow Margin:
11.2%
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PLCE Stock Analysis

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Take a look at Amigobulls Children's Place stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for PLCE stock.

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.

Childrens Place Inc Stock Rating 3.6/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for PLCE stock analysis. Children's Place valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Children's Place stock rating which is indicative of the company's financial performance.

Should you buy PLCE stock?

  • The TTM operating margin was good at 8.6% for Children's Place.
  • Net margins stood at a healthy 4.5% (average) for Children's Place in the Trailing Twelve Months.
  • With its debt/equity ratio of  0.09, Children's Place has a lower debt burden when compared to the Retail-Wholesale average.
  • The price to earnings multiple of 16.3 is attractive when compared with the industry average PE ratio of 19.9.
  • Children's Place's return on invested capital of 27.9% is good.
  • The LTM ROE of 17.1% for Children's Place is attractive.
  • Children's Place has a healthy FCF (Free Cash Flow) margin of 11.2%.

Should you sell PLCE stock?

  • Over the last 5 years, the company registered a poor revenue growth of 0.7%.
  • The company is trading at a price to sales multiple of 1.2, which is overvalued in comparison to the Retail-Apparel-Shoe industry average multiple of 0.7.

Comments on this video and Children's Place stock

Amigobulls Children's Place stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of PLCE stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Children's Place revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Children's Place stock.