Childrens Place Net Income vs. Price To Earning

PLCE Stock  USD 11.66  0.59  4.82%   
Based on the measurements of profitability obtained from Childrens Place's financial statements, Childrens Place is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Childrens Place's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1997-01-31
Previous Quarter
-37.8 M
Current Value
-32.1 M
Quarterly Volatility
29.5 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Childrens Place's EV To Sales is projected to slightly decrease based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.25, whereas Days Sales Outstanding is forecasted to decline to 6.62. At present, Childrens Place's Income Quality is projected to slightly decrease based on the last few years of reporting.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.350.2779
Significantly Up
Slightly volatile
Return On Equity0.096617.135
Way Down
Slightly volatile
For Childrens Place profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Childrens Place to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Childrens Place utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Childrens Place's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Childrens Place over time as well as its relative position and ranking within its peers.
  

Childrens Place's Revenue Breakdown by Earning Segment

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For information on how to trade Childrens Stock refer to our How to Trade Childrens Stock guide.
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Childrens Place. If investors know Childrens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Childrens Place listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.06)
Earnings Share
(12.70)
Revenue Per Share
120.565
Quarterly Revenue Growth
(0.07)
Return On Assets
0.001
The market value of Childrens Place is measured differently than its book value, which is the value of Childrens that is recorded on the company's balance sheet. Investors also form their own opinion of Childrens Place's value that differs from its market value or its book value, called intrinsic value, which is Childrens Place's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Childrens Place's market value can be influenced by many factors that don't directly affect Childrens Place's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Childrens Place's value and its price as these two are different measures arrived at by different means. Investors typically determine if Childrens Place is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Childrens Place's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Childrens Place Price To Earning vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Childrens Place's current stock value. Our valuation model uses many indicators to compare Childrens Place value to that of its competitors to determine the firm's financial worth.
Childrens Place is rated below average in net income category among its peers. It is rated below average in price to earning category among its peers . At present, Childrens Place's Net Loss is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Childrens Place by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Childrens Price To Earning vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Childrens Place

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(154.54 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Childrens Place

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
4.36 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Childrens Price To Earning Comparison

Childrens Place is currently under evaluation in price to earning category among its peers.

Childrens Place Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Childrens Place, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Childrens Place will eventually generate negative long term returns. The profitability progress is the general direction of Childrens Place's change in net profit over the period of time. It can combine multiple indicators of Childrens Place, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-16.5 M-15.7 M
Operating Income-83.8 M-79.6 M
Income Before Tax-113.8 M-108.1 M
Total Other Income Expense Net-30 M-28.5 M
Net Loss-154.5 M-146.8 M
Income Tax Expense40.7 M25.9 M
Net Loss-1.3 M-1.2 M
Net Loss-154.5 M-146.8 M
Interest Income87 K82.7 K
Net Interest Income-30 M-28.5 M
Non Operating Income Net Other82.8 K78.7 K
Change To Netincome38 M36.1 M
Net Income Per Share(12.36) 2.62 
Income Quality(0.60) 2.84 
Net Income Per E B T 1.36  0.71 

Childrens Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Childrens Place. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Childrens Place position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Childrens Place's important profitability drivers and their relationship over time.

Use Childrens Place in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Childrens Place position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Childrens Place will appreciate offsetting losses from the drop in the long position's value.

Childrens Place Pair Trading

Childrens Place Pair Trading Analysis

The ability to find closely correlated positions to Childrens Place could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Childrens Place when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Childrens Place - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Childrens Place to buy it.
The correlation of Childrens Place is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Childrens Place moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Childrens Place moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Childrens Place can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Childrens Place position

In addition to having Childrens Place in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
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When determining whether Childrens Place is a strong investment it is important to analyze Childrens Place's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Childrens Place's future performance. For an informed investment choice regarding Childrens Stock, refer to the following important reports:
Check out Your Equity Center.
For information on how to trade Childrens Stock refer to our How to Trade Childrens Stock guide.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project Childrens Place's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Childrens Place at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Childrens Place's income statement, its balance sheet, and the statement of cash flows.
Potential Childrens Place investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Childrens Place investors may work on each financial statement separately, they are all related. The changes in Childrens Place's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Childrens Place's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.