PLCE

Children's Place Inc

Consumer


Presented:04/19/2016
Price:$83.16
Cap:$1.68B
Current Price:$14.04
Cap:$0.18B

Presented

Date04/19/2016
Price$83.16
Market Cap$1.68B
Ent Value$1.09B
P/E Ratio29.59x
Book Value$27.15
Div Yield0.01%
Shares O/S20.17M
Ave Daily Vol567,378
Short Int15.90%

Current

Price$14.04
Market Cap$0.18B
The Children's Place, Inc. engages in the provision of apparel, accessories and footwear for children. It also designs, contracts to manufacture and sell fashionable, high-quality, value-priced merchandise, the majority of which is under the proprietary 'The Children's Place' brand name. Its stores offer a friendly and convenient shopping environment. The company operates its business through the following segments: The Children's Place U.S. and The Children's Place Canada. The Children's Place U.S. segment includes the company's U.S. and Puerto Rico based stores. The Children's Place Canada segment includes the company's Canadian based stores. The company was founded in 1969 and is headquartered in Secaucus, NJ.

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

Highlights

Overall the presenter is bearish on the outlook for Children’s Place (PLCE). He is short the stock at present levels ($83) and sees downside risk for shareholders based on a “peak retail” story. From 2010 to present, comps have been negative, flat, or up insignificantly; and store closures limit top line growth. However, in the past 4 1/2 months comps have been quite good, which has driven shares up to $85 (from $50). He noted that PLCE’s most recent earnings release “looked fantastic and comps were up almost 10% quarter to-date, but that includes favorable weather and the Easter shift which is a big benefit for the company”. The stock is expensive at 20x and 7x calendar year 2016 EPS and EBITDA estimates, and the presenter believes more reasonable multiples are 14x and 5x - 6x, respectively.

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Idea Discussion

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