NasdaqGS:PLCE

Stock Analysis Report

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Executive Summary

The Children's Place, Inc. operates as a children's specialty apparel retailer. More Details


Snowflake Analysis

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

How has Children's Place's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PLCE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: PLCE's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

3.3%

PLCE

-0.2%

US Specialty Retail

0.9%

US Market


1 Year Return

-32.2%

PLCE

23.9%

US Specialty Retail

22.1%

US Market

Return vs Industry: PLCE underperformed the US Specialty Retail industry which returned 23.9% over the past year.

Return vs Market: PLCE underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

PLCEIndustryMarket
7 Day3.3%-0.2%0.9%
30 Day85.6%7.0%10.2%
90 Day102.0%9.3%9.7%
1 Year-31.6%-32.2%25.1%23.9%24.8%22.1%
3 Year-63.7%-65.3%76.5%69.0%48.6%38.7%
5 Year-6.4%-12.8%80.9%67.2%99.6%77.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Children's Place undervalued compared to its fair value and its price relative to the market?

25.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLCE ($47.32) is trading below our estimate of fair value ($63.47)

Significantly Below Fair Value: PLCE is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: PLCE 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 PLCE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PLCE is overvalued based on its PB Ratio (8.9x) compared to the US Specialty Retail industry average (2.3x).


Next Steps

Future Growth

How is Children's Place forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

137.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PLCE's revenue (6.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: PLCE's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLCE's Return on Equity is forecast to be very high in 3 years time (88.3%).


Next Steps

Past Performance

How has Children's Place performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLCE is currently unprofitable.

Growing Profit Margin: PLCE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PLCE is unprofitable, and losses have increased over the past 5 years at a rate of 29.4% per year.

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

Earnings vs Industry: PLCE is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (14.3%).


Return on Equity

High ROE: PLCE has a negative Return on Equity (-160.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Children's Place's financial position?


Financial Position Analysis

Short Term Liabilities: PLCE's short term assets ($539.6M) do not cover its short term liabilities ($776.8M).

Long Term Liabilities: PLCE's short term assets ($539.6M) exceed its long term liabilities ($352.8M).


Debt to Equity History and Analysis

Debt Level: PLCE's debt to equity ratio (332.2%) is considered high.

Reducing Debt: PLCE's debt to equity ratio has increased from 6.1% to 332.2% over the past 5 years.

Debt Coverage: PLCE's debt is not well covered by operating cash flow (10.4%).

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


Balance Sheet


Next Steps

Dividend

What is Children's Place current dividend yield, its reliability and sustainability?

2.38%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: PLCE is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Jane Elfers (59 yo)

10.92yrs

Tenure

US$12,208,109

Compensation

Ms. Jane T. Elfers has been President of Global Product at The Children's Place Inc since November 2, 2018. She has been the Chief Executive Officer and President of The Children's Place Inc. (alternate na...


CEO Compensation Analysis

Compensation vs Market: Jane's total compensation ($USD12.21M) is above average for companies of similar size in the US market ($USD2.60M).

Compensation vs Earnings: Jane's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jane Elfers
CEO, President & Director10.92yrsUS$12.21m1.84%
$ 12.7m
Michael Scarpa
CFO & Executive VP2.08yrsUS$3.21m0.53%
$ 3.6m
Leah Swan
Chief Operating Officer0.17yrUS$3.58m0.60%
$ 4.1m
Claudia Lima-Guinehut
Senior Vice President of Global Merchandising & Strategic Partnershipsno dataUS$1.52m0.20%
$ 1.4m
Rajat Jain
Chief Technology Officer1.92yrsno datano data
Anthony Attardo
Director of Investor Relationsno datano datano data
Bradley Cost
Senior VP0.58yrUS$1.01mno data
Gregory Poole
Chief Supply Chain Officer8.25yrsUS$3.05mno data
Jennifer Groves
Senior Vice President of Design & Brand Creative4.75yrsno datano data
Robert Helm
Senior Vice President of Finance & Inventory Management1.08yrsno data0.19%
$ 1.3m
Maegan Markee
Senior Vice President of Digital Marketing0.083yrno datano data

1.9yrs

Average Tenure

58yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Jane Elfers
CEO, President & Director10.92yrsUS$12.21m1.84%
$ 12.7m
Elizabeth Boland
Independent Director1.58yrsUS$159.15k0.027%
$ 185.2k
Norman Matthews
Independent Chairman11.17yrsUS$360.56k0.61%
$ 4.2m
Joseph Alutto
Independent Director12.58yrsUS$228.08k0.13%
$ 899.3k
Joseph Gromek
Independent Director9.75yrsUS$232.58k0.15%
$ 1.0m
Robert Mettler
Independent Director5.58yrsUS$207.58k0.040%
$ 276.9k
Marla Beck
Independent Director5.25yrsUS$213.58k0.022%
$ 153.6k
Tracey Griffin
Independent Director0.17yrno datano data
Debby Reiner
Independent Director1.58yrsUS$159.15k0.0063%
$ 43.2k
John Bachman
Independent Director4.75yrsUS$245.83k0.071%
$ 486.7k

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: PLCE's board of directors are considered experienced (5.4 years average tenure).


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

The Children's Place, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Children's Place, Inc.
  • Ticker: PLCE
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$690.261m
  • Shares outstanding: 14.59m
  • Website: https://www.childrensplace.com

Number of Employees


Location

  • The Children's Place, Inc.
  • 500 Plaza Drive
  • Secaucus
  • New Jersey
  • 7094
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLCENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1997
CP5DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1997

Biography

The Children's Place, Inc. operates as a children's specialty apparel retailer. The company operates through two segments, The Children's Place U.S. and The Children's Place International. It sells apparel...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:59
End of Day Share Price2020/12/04 00:00
Earnings2020/10/31
Annual Earnings2020/02/01


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.