NasdaqGS:FRAN

Stock Analysis Report

Executive Summary

Francesca's Holdings Corporation, through its subsidiaries, operates a chain of boutiques.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Francesca's Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

FRAN

0.5%

US Specialty Retail

0.4%

US Market


1 Year Return

-47.1%

FRAN

8.4%

US Specialty Retail

11.4%

US Market

Return vs Industry: FRAN underperformed the US Specialty Retail industry which returned 8.4% over the past year.

Return vs Market: FRAN underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

FRANIndustryMarket
7 Day-2.6%0.5%0.4%
30 Day52.1%4.0%0.3%
90 Day530.6%3.6%-1.2%
1 Year-47.1%-47.1%10.3%8.4%13.9%11.4%
3 Year-89.3%-89.3%44.7%37.1%47.2%37.6%
5 Year-86.3%-86.3%55.6%42.3%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Francesca's Holdings undervalued compared to its fair value and its price relative to the market?

0.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FRAN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FRAN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FRAN is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: FRAN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FRAN is good value based on its PB Ratio (1x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

  • Explore potentially undervalued companies in the Retail industry.

Future Growth

How is Francesca's Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRAN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FRAN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FRAN is forecast to remain unprofitable over the next 3 years.

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Francesca's Holdings performed over the past 5 years?

-47.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRAN is unprofitable, and losses have increased over the past 5 years at a rate of -47.6% per year.

Accelerating Growth: Unable to compare FRAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FRAN is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (6.8%).


Return on Equity

High ROE: FRAN has a negative Return on Equity (-72.8%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FRAN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FRAN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Francesca's Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FRAN's short term assets ($71.7M) do not cover its short term liabilities ($81.1M)

Long Term Liabilities: FRAN's short term assets (71.7M) do not cover its long term liabilities (223.9M)


Debt to Equity History and Analysis

Debt Level: FRAN's debt to equity ratio (15.9%) is considered satisfactory

Reducing Debt: FRAN's debt to equity ratio has increased from 5.1% to 15.9% over the past 5 years.

Debt Coverage: FRAN's debt is well covered by operating cash flow (39.7%).

Interest Coverage: Insufficient data to determine if FRAN's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: FRAN's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is Francesca's Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FRAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FRAN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FRAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FRAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FRAN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Michael Prendergast (46yo)

0.7yrs

Tenure

0

Mr. Michael Prendergast has been Interim Chief Executive Officer at Francesca's Holdings Corporation since February 4, 2019. Mr. Prendergast is a Senior Director at Alvarez & Marsal, part of a global profe ...


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: FRAN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.5yrs

Average Tenure

65yo

Average Age

Experienced Board: FRAN's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$57,15012 Sep 19
Richard Emmett
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$11.43
BuyUS$137,25001 Aug 19
Cross River Capital Management LLC
EntityCompany
Shares45,000
Max PriceUS$3.05
BuyUS$384,16916 Jul 19
Cross River Capital Management LLC
EntityCompany
Shares95,284
Max PriceUS$4.23
BuyUS$968,33311 Jul 19
Cross River Capital Management LLC
EntityCompany
Shares188,399.72
Max PriceUS$6.84
BuyUS$122,59315 May 19
Cross River Capital Management LLC
EntityCompany
Shares17,384.33
Max PriceUS$7.73

Ownership Breakdown


Management Team

  • Cindy Thomassee (47yo)

    Executive VP

    • Tenure: 0.3yrs
    • Compensation: US$531.02k
  • Ivy Spargo

    Senior VP & Chief Merchandising Officer

    • Tenure: 1.9yrs
  • R. Minnix

    Head of Boutiques & Senior VP

    • Tenure: 5.3yrs
  • Michael Prendergast (46yo)

    Interim Chief Executive Officer

    • Tenure: 0.7yrs

Board Members

  • Martyn Redgrave (66yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$165.00k
  • Marie Toulantis (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$157.50k
  • Rich Emmett (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$160.00k
  • Rick Kunes (66yo)

    Independent Chairman of the Board

    • Tenure: 3yrs
    • Compensation: US$175.00k
  • Patty Bender (65yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$150.00k
  • Joe O'Leary (60yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$150.00k
  • Phil Bleser (65yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$150.00k

Company Information

Francesca's Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Francesca's Holdings Corporation
  • Ticker: FRAN
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$61.090m
  • Shares outstanding: 3.06m
  • Website: https://www.francescas.com

Number of Employees


Location

  • Francesca's Holdings Corporation
  • 8760 Clay Road
  • Houston
  • Texas
  • 77080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRANNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 2011
6FCNDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2011

Biography

Francesca's Holdings Corporation, through its subsidiaries, operates a chain of boutiques. The company offers fashion apparel, jewelry, accessories, and gifts for women between the ages of 18 and 35. Its a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:27
End of Day Share Price2019/10/23 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.