The Children's Place, Inc. Fundamental Analysis (NASDAQ: PLCE)
The Children's Place, Inc. Fundamental Analysis (NASDAQ: PLCE)
The Children's Place, Inc. (NASDAQ: PLCE) shows weak financial fundamentals with a PE ratio of -0.33, profit margin of -11.82%, and ROE of 1.72%. The company generates $1.1B in annual revenue with weak year-over-year growth of -12.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PLCE's fundamental strength across five key dimensions:
Efficiency Score
WeakPLCE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLCE trades at attractive valuation levels.
Growth Score
ModeratePLCE shows steady but slowing expansion.
Financial Health Score
ModeratePLCE shows balanced financial health with some risks.
Profitability Score
ModeratePLCE maintains healthy but balanced margins.
Key Financial Metrics
Is PLCE Expensive or Cheap?
P/E Ratio
PLCE trades at -0.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PLCE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values The Children's Place, Inc. at -0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.48 times EBITDA. This is generally considered low.
How Well Does PLCE Make Money?
Net Profit Margin
For every $100 in sales, The Children's Place, Inc. keeps $-11.82 as profit after all expenses.
Operating Margin
Core operations generate -7.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.72 in profit for every $100 of shareholder equity.
ROA
The Children's Place, Inc. generates $-17.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Children's Place, Inc. generates limited operating cash flow of $49.26M, signaling weaker underlying cash strength.
Free Cash Flow
The Children's Place, Inc. generates weak or negative free cash flow of $23.02M, restricting financial flexibility.
FCF Per Share
Each share generates $1.04 in free cash annually.
FCF Yield
PLCE converts 51.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.72
vs 25 benchmark
ROA
Return on assets percentage
-0.18
vs 25 benchmark
ROCE
Return on capital employed
-0.33
vs 25 benchmark
How PLCE Stacks Against Its Sector Peers
| Metric | PLCE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.33 | 23.74 | Better (Cheaper) |
| ROE | 172.19% | 967.00% | Weak |
| Net Margin | -11.82% | -3005.00% (disorted) | Weak |
| Debt/Equity | -4.48 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 0.89 | 2.33 | Weak Liquidity |
| ROA | -17.92% | 324.00% | Weak |
PLCE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Children's Place, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.27%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
58.23%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
115.10%
Industry Style: Cyclical, Growth, Discretionary
High Growth