NasdaqGS:CTRN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and fair value.


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


Market Performance


7 Day Return

5.4%

CTRN

3.7%

US Specialty Retail

1.0%

US Market


1 Year Return

-31.1%

CTRN

2.7%

US Specialty Retail

6.7%

US Market

Return vs Industry: CTRN underperformed the US Specialty Retail industry which returned 2.7% over the past year.

Return vs Market: CTRN underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CTRNIndustryMarket
7 Day5.4%3.7%1.0%
30 Day-2.3%0.04%-1.8%
90 Day17.7%0.7%-1.8%
1 Year-29.8%-31.1%4.4%2.7%9.1%6.7%
3 Year-3.3%-7.7%40.0%32.8%46.1%36.6%
5 Year-5.1%-10.7%59.2%45.2%66.9%48.6%

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

Valuation

Is Citi Trends undervalued based on future cash flows and its price relative to the stock market?

15.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CTRN ($18.47) is trading above our estimate of fair value ($13.28)

Significantly Undervalued: CTRN is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CTRN is good value based on its PE Ratio (15.1x) compared to the Specialty Retail industry average (15.3x).

PE vs Market: CTRN is good value based on its PE Ratio (15.1x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: CTRN is good value based on its PB Ratio (1.2x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CTRN's forecast earnings growth (16.4% per year) is above the savings rate (2.7%).

Earnings vs Market: CTRN's earnings (16.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: CTRN's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if CTRN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if CTRN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if CTRN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Citi Trends performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTRN's earnings have grown by 14.7% per year over the past 5 years.

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

Earnings vs Industry: CTRN had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (8.3%).


Return on Equity

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


Return on Assets

ROA vs Industry: CTRN's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: CTRN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Citi Trends's financial position?


Financial Position Analysis

Short Term Liabilities: CTRN's short term assets ($215.0M) exceeds its short term liabilities ($140.3M)

Long Term Liabilities: CTRN's short term assets (215.0M) exceeds its long term liabilities (120.0M)


Debt to Equity History and Analysis

Debt Level: CTRN is debt free.

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

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CTRN's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CTRN's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

Growing Dividend: CTRN'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 (26.2%), CTRN'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

What is the CEO of Citi Trends's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Bruce Smith (60yo)

2.6yrs

Tenure

US$1,187,902

Compensation

Mr. Bruce D. Smith has been President, Chief Executive Officer and Director of Citi Trends, Inc. since March 15, 2018 and has been its Secretary since March 2015. He served as Acting Chief Executive Office ...


CEO Compensation Analysis

Compensation vs. Market: Bruce's total compensation ($USD1.19M) is about average for companies of similar size in the US market ($USD1.17M).

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.6yrs

Average Tenure

61.5yo

Average Age

Experienced Management: CTRN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

58yo

Average Age

Experienced Board: CTRN's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CTRN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$87,29311 Sep 19
Jonathan Duskin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,009
Max PriceUS$17.43
BuyUS$151,56010 Sep 19
Peter Sachse
EntityIndividual
Role
Member of the Board of Directors
Director & Special Advisor to the CEO
Shares9,000
Max PriceUS$16.84
SellUS$38,68003 Apr 19
Christina Short
EntityIndividual
Role
Senior Key Executive
Senior VP & General Merchandise Manager
Shares2,000
Max PriceUS$19.34
SellUS$294,48419 Dec 18
Macellum Management, LP
EntityCompany
Shares15,000
Max PriceUS$20.01

Ownership Breakdown


Management Team

  • Ivy Council (62yo)

    Executive VP of Human Resources & Chief Compliance Officer

    • Tenure: 7.6yrs
    • Compensation: US$582.53k
  • Bruce Smith (60yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$1.19m
  • Stuart Clifford (65yo)

    Senior VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$340.84k
  • James Dunn (62yo)

    Senior Vice President of Store Operations

    • Tenure: 13.5yrs
    • Compensation: US$624.43k
  • Peter Sachse (61yo)

    Director & Special Advisor to the CEO

    • Tenure: 0.3yrs
  • Charles Crowell (66yo)

    Senior Vice President of Supply Chain

    • Tenure: 8.5yrs
    • Compensation: US$584.92k
  • Brian Lattman (48yo)

    Senior VP & General Merchandise Manager

    • Tenure: 1.6yrs
    • Compensation: US$464.29k
  • Christina Short (47yo)

    Senior VP & General Merchandise Manager

    • Tenure: 1.6yrs
    • Compensation: US$468.98k
  • Lisa Powell

    Executive VP & Chief Merchandising Officer

    • Tenure: 0.08yrs

Board Members

  • Brian Carney (58yo)

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: US$193.25k
  • Bruce Smith (60yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$1.19m
  • Laurens Goff (47yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$215.00k
  • Margaret Jenkins (67yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$178.00k
  • Peter Sachse (61yo)

    Director & Special Advisor to the CEO

    • Tenure: 0.3yrs
  • Jon Duskin (51yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$183.75k
  • Ken Seipel (58yo)

    Independent Director

    • Tenure: 0.08yrs

Company Information

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


Key Information

  • Name: Citi Trends, Inc.
  • Ticker: CTRN
  • Exchange: NasdaqGS
  • Founded: 1946
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$216.971m
  • Shares outstanding: 11.75m
  • 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 newb ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:44
End of Day Share Price2019/10/11 00:00
Earnings2019/08/03
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.

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