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. The average 12-month price forecast for this stock is $143.43, with the high estimate being $167.00, the low estimate being $117.00 and the median estimate amounting to $140.00. This is compared to its latest closing price of $89.29.
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 1.57. This is compared to 1 month ago, when its average rating was 1.75.
For the quarter ending in Jul-18 The Children’s Place, Inc. [PLCE] generated $0.45 billion in sales. That’s 4.87% higher than the average estimate of $0.43 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 Tue 19 Mar (In 65 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 +8.96 and its Gross Margin at +34.38, this company’s Net Margin is now 4.00%. 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 33.27, and its Return on Invested Capital has reached 27.60%. Its Return on Equity is 17.46, and its Return on Assets is 9.15. 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 4.53. Similarly, its Total Debt to Total Capital is 4.33, while its Total Debt to Total Assets stands at 2.28.
What about valuation? This company’s Enterprise Value to EBITDA is 4.97 and its Total Debt to EBITDA Value is 0.09. The Enterprise Value to Sales for this firm is now 0.59, and its Total Debt to Enterprise Value stands at 0.01. The Children’s Place, Inc. [PLCE] has a Price to Book Ratio of 5.29, a Price to Cash Flow Ratio of 12.33 and P/E Ratio of 19.38. These metrics all suggest that The Children’s Place, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, The Children’s Place, Inc. [PLCE] earns $118,372 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 65.05 and its Total Asset Turnover is 2.02. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.92 and its Current Ratio is 1.82. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: The Children’s Place, Inc. [PLCE] has 16.53M shares outstanding, amounting to a total market cap of $1.50B. Its stock price has been found in the range of 85.62 to 161.65. At its current price, it has moved by -43.81% from its 52-week high, and it has moved 6.09% from its 52-week low.
This stock’s Beta value is currently 0.64, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 34.74. 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.