PLCE

Children's Place Inc

Consumer


Presented:12/13/2019
Price:$54.11
Cap:$0.84B
Current Price:$14.04
Cap:$0.18B

Presented

Date12/13/2019
Price$54.11
Market Cap$0.84B
Ent Value$2.05B
P/E Ratio15.15x
Book Value$16.67
Div Yield3.81%
Shares O/S15.57M
Ave Daily Vol805,602
Short Int62.95%

Current

Price$14.04
Market Cap$0.18B
The Children's Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. It also designs, contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children's Place, Place and Baby Place. The company was founded in 1969 and is headquartered in Secaucus, NJ.

Publicly traded companies mentioned herein: Carter’s Inc (CRI), Children’s Place Inc/The (PLCE)

Highlights

The presenter is long shares of The Children’s Place Inc (PLCE) and believes that the Street has capitalized losses in one-time investments that should actually allow the company to take market share over time. Based on his math, the company should be able to achieve $7.00 in EPS for 2020, while the Street is at $6.25. Applying a 12x EPS multiple, one standard deviation below PLCE’s historical 5% discount to its closest comp Carter’s (CRI), which trades at 15x, gets the stock price into the mid-$80s, representing ~50% upside from current share prices. 

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Idea Discussion

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