Children’s Place Inc. (PLCE) is a specialty retailer that sells accessories, footwear, and other items for children. The company has over a thousand stores in North America and also sells through its website and wholesale. It reaches more than a dozen other countries, with franchise partners operating stores, shops, or e-commerce sites…
Children’s Place Inc. (PLCE) has undertaken growth efforts such as enhancing its digital capabilities, augmenting its supply chain, and improving its financial flexibility. PLCE had a strong first-quarter, driven by a favorable response towards its product assortment, higher price realization, and consumers spending stimulus checks.
From a liquidity standpoint, the company has a current ratio of 0.9, which indicates it may not be able to cover short-term obligations. In addition, the company has a high debt-to-equity ratio of 4.1.
While PLCE had a strong first quarter, revenue growth has essentially been flat over the past five years, while earnings have fallen an average of 17.7% per year over the same period. However, analysts forecast earnings to surge 120.9% year over year in the current quarter.
The stock appears fairly valued with a forward P/E of 20.66. The stock was trending higher since September, but has shown mixed performance recently as shown in the chart below.
Take a look at the 1-year chart of PLCE below with added notations…
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