DB:WW2

Stock Analysis Report

Executive Summary

Citi Trends, Inc. operates as a value-priced retailer of urban fashion apparel and accessories.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Citi Trends's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WW2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

WW2

-3.3%

DE Specialty Retail

1.7%

DE Market


1 Year Return

24.2%

WW2

17.9%

DE Specialty Retail

15.0%

DE Market

Return vs Industry: WW2 exceeded the German Specialty Retail industry which returned 17.9% over the past year.

Return vs Market: WW2 exceeded the German Market which returned 15% over the past year.


Shareholder returns

WW2IndustryMarket
7 Day0%-3.3%1.7%
30 Day12.8%-1.9%1.4%
90 Day30.2%1.7%3.3%
1 Year26.5%24.2%20.7%17.9%18.5%15.0%
3 Year37.4%31.1%-9.7%-48.8%17.1%6.9%
5 Year2.5%-4.0%-0.3%-50.8%24.3%7.3%

Price Volatility Vs. Market

How volatile is Citi Trends's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Citi Trends undervalued compared to its fair value and its price relative to the market?

19.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WW2 (€22) is trading above our estimate of fair value (€15.05)

Significantly Below Fair Value: WW2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WW2 is poor value based on its PE Ratio (19.6x) compared to the Specialty Retail industry average (10.3x).

PE vs Market: WW2 is good value based on its PE Ratio (19.6x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WW2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WW2 is overvalued based on its PB Ratio (1.5x) compared to the DE Specialty Retail industry average (1.2x).


Next Steps

Future Growth

How is Citi Trends forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.2%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Citi Trends has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Citi Trends performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WW2 has high quality earnings.

Growing Profit Margin: WW2's current net profit margins (1.9%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: WW2's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: WW2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WW2 had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (31.9%).


Return on Equity

High ROE: WW2's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Citi Trends's financial position?


Financial Position Analysis

Short Term Liabilities: WW2's short term assets ($208.2M) exceed its short term liabilities ($139.2M).

Long Term Liabilities: WW2's short term assets ($208.2M) exceed its long term liabilities ($122.4M).


Debt to Equity History and Analysis

Debt Level: WW2 is debt free.

Reducing Debt: WW2 has not had any debt for past 5 years.

Debt Coverage: WW2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WW2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: WW2 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WW2's debt is covered by short term assets.


Next Steps

Dividend

What is Citi Trends's current dividend yield, its reliability and sustainability?

1.35%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.3%markettop25%3.6%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: WW2's dividend (1.35%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: WW2's dividend (1.35%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WW2 has been paying a dividend for less than 10 years.

Growing Dividend: WW2's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), WW2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Peter Sachse (61yo)

0.2yrs

Tenure

0

Mr. Peter Sachse has been Interim Chief Executive Officer at Citi Trends, Inc. since December 9, 2019 and has been its Director since June 6, 2019. Mr. Sachse was Special Advisor to the CEO at Citi Trends  ...


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Clifford
Senior VP & CFO1.9yrsUS$340.84k0.12% $301.8k
Ivy Council
Executive VP of Human Resources & Chief Compliance Officer7.9yrsUS$582.53k0.66% $1.7m
Brian Lattman
Senior VP & General Merchandise Manager1.9yrsUS$464.29k0.14% $340.7k
Christina Short
Senior VP & General Merchandise Manager1.9yrsUS$468.98k0.081% $203.3k
Peter Sachse
Interim CEO & Director0.2yrsno data0.39% $977.0k
James Dunn
Senior Vice President of Store Operations13.8yrsUS$624.43k0.44% $1.1m
Lisa Powell
Executive VP & Chief Merchandising Officer0.4yrsno data0.14% $357.4k
Charles Hynes
Senior Vice President of Supply Chain0yrsno data0.068% $169.1k

1.9yrs

Average Tenure

61.5yo

Average Age

Experienced Management: WW2's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Sachse
Interim CEO & Director0.2yrsno data0.39% $977.0k
Brian Carney
Independent Chairman0.7yrsUS$193.25k0.31% $765.9k
Laurens Goff
Independent Director6.3yrsUS$215.00k0.18% $440.7k
Margaret Jenkins
Independent Director2.3yrsUS$178.00k0.071% $177.1k
Jonathan Duskin
Independent Director2.8yrsUS$183.75k0.038% $95.7k
Kenneth Seipel
Independent Director0.4yrsno data0.026% $64.8k

1.5yrs

Average Tenure

58yo

Average Age

Experienced Board: WW2's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Citi Trends, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citi Trends, Inc.
  • Ticker: WW2
  • Exchange: DB
  • Founded: 1946
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$271.550m
  • Listing Market Cap: US$250.451m
  • Shares outstanding: 11.49m
  • Website: https://www.cititrends.com

Number of Employees


Location

  • Citi Trends, Inc.
  • 104 Coleman Boulevard
  • Savannah
  • Georgia
  • 31408
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTRNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2005
WW2DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2005

Biography

Citi Trends, Inc. operates as a value-priced retailer of urban fashion apparel and accessories. The company offers apparel, such as fashion sportswear for men and women, as well as children, including newborns, infants, toddlers, boys, and girls; accessories comprising handbags, jewelry, footwear, belts, intimate apparel, scrubs, and sleepwear; and functional bedroom, bathroom, and kitchen products, as well as beauty products and toys. It provides its products primarily to African-Americans in the United States. As of February 2, 2019, the company operated 562 stores in 32 states. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 20:54
End of Day Share Price2020/02/14 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.