The Children’s Place, Inc. [NASDAQ:PLCE]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding The Children’s Place, Inc. [PLCE], the latest average analyst recommendation we can see is from the quarter closing in January. On average, stock market experts give PLCE an Outperform rating. Its stock price has been found in the range of 82.05 to 160.23. This is compared to its latest closing price of $104.37.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Children’s Place, Inc. [PLCE] is sitting at 1.89. This is compared to 1 month ago, when its average rating was 1.86.
For the quarter ending in Apr-19 The Children’s Place, Inc. [PLCE] generated $0.41 billion in sales. That’s 3.18% higher than the average estimate of $0.4 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 22 Aug (In 98 Days).
Fundamental Analysis of The Children’s Place, Inc. [PLCE]
Now let’s turn to look at profitability: with a current Operating Margin for The Children’s Place, Inc. [PLCE] sitting at +6.00 and its Gross Margin at +31.71, this company’s Net Margin is now 5.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 27.09, and its Return on Invested Capital has reached 28.50%. Its Return on Equity is 25.62, and its Return on Assets is 12.11. These metrics all suggest that The Children’s Place, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Children’s Place, Inc. [PLCE] has generated a Total Debt to Total Equity ratio of 15.54. Similarly, its Total Debt to Total Capital is 13.45, while its Total Debt to Total Assets stands at 6.72.
What about valuation? This company’s Enterprise Value to EBITDA is 9.57 and its Total Debt to EBITDA Value is 0.26. The Enterprise Value to Sales for this firm is now 0.93, and its Total Debt to Enterprise Value stands at 0.03. The Children’s Place, Inc. [PLCE] has a Price to Book Ratio of 4.64, a Price to Cash Flow Ratio of 11.07 and P/E Ratio of 23.22. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, The Children’s Place, Inc. [PLCE] earns $103,641 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 63.32 and its Total Asset Turnover is 2.32. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.40 and its Current Ratio is 1.31. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
The Children’s Place, Inc. [PLCE] has 15.55M shares outstanding, amounting to a total market cap of $1.62B. Its stock price has been found in the range of 82.05 to 160.23. At its current price, it has moved by -34.90% from its 52-week high, and it has moved 27.14% from its 52-week low.
This stock’s Beta value is currently 0.70, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.85. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Children’s Place, Inc. [PLCE] a Reliable Buy?
Shares of The Children’s Place, Inc. [PLCE], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.