Children's Place (PLCE) AI Stock Analysis

• Market Cap: $133.23M
• Dividend Yield: N/A
• Average Volume (3M): 933.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: -12.15%
• EPS Growth: 75.86%
• Country: US
• Employees: 2,530
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Retail
• EPS (TTM): -1.52
• Shares Outstanding: 22,167,889
• 10 Day Avg. Volume: 1,149,975
• 30 Day Avg. Volume: 933,151
• PEG Ratio: -0.06
• Price to Book (P/B): 75.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.70
• Enterprise Value/Market Cap: 4.89
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 13.24
• 1Y Price Target: $6.00
• Price Target Upside: 5.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $6.00 ▲(5.08%Upside)

The overall stock score is primarily influenced by significant financial challenges, including negative profitability and high leverage. While technical analysis shows some short-term bullish signals, the long-term outlook remains concerning. Valuation metrics further underscore the stock's potential overvaluation.

Children's Place Business Overview & Revenue Model

Company Description

The Children's Place, Inc. (PLCE) is a leading specialty retailer of children's apparel and accessories. The company primarily operates in the North American market, providing high-quality, stylish, and age-appropriate clothing for infants, toddlers, and children up to the age of 14. The Children's Place offers a range of products including tops, bottoms, dresses, outerwear, shoes, and accessories, both in-store and through its e-commerce platform. With a focus on value, quality, and convenience, the company aims to be the preferred shopping destination for children's fashion.

How the Company Makes Money

The Children's Place generates revenue through the sale of children's apparel and accessories in its retail stores and online platform. The company's key revenue streams include its physical retail locations, which provide a traditional shopping experience, and its e-commerce operations, which cater to a growing digital consumer base. Additionally, the company offers various promotions and loyalty programs to incentivize repeat purchases. Strategic partnerships and exclusive collections also contribute to the company's earnings, allowing it to offer unique products and expand its market reach.

Children's Place Financial Statement Overview

Summary

The financial performance of Children's Place is notably poor, characterized by declining revenues, negative profitability, high leverage, and negative cash flows. These issues suggest financial instability and a need for strategic restructuring.

Income Statement

The company's income statement shows significant challenges, with a declining revenue trend from 2022 to TTM 2025. The TTM (Trailing-Twelve-Months) gross profit margin is 32.2%, which reflects a decrease compared to historical performance. The net profit margin is negative, indicating the company is not profitable, and EBIT and EBITDA margins are also negative for TTM, showing operational inefficiencies. Revenue growth has been negative, highlighting a concerning trend in sales performance.

Balance Sheet

The balance sheet reveals a worrying financial position with a very high debt-to-equity ratio due to minimal stockholders' equity, even negative in some periods. The equity ratio is extremely low at 0.18% for TTM, reflecting high leverage and significant financial risk. Return on equity is not meaningful due to negative equity, and the company's assets are primarily funded by debt, which poses a risk.

Cash Flow

Cash flow analysis highlights struggles with generating positive cash flow. The TTM free cash flow is negative, and the operating cash flow to net income ratio is not favorable, indicating cash flow issues. The free cash flow to net income ratio is also negative, underscoring inefficiencies in cash generation relative to earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.39B	1.60B	1.71B	1.92B	1.52B
Gross Profit	459.46M	445.27M	514.16M	794.74M	333.25M
EBITDA	25.96M	-36.52M	138.96M	434.64M	-20.30M
Net Income	-57.82M	-154.54M	-1.14M	187.17M	-140.37M
Balance Sheet
Total Assets	747.55M	800.31M	986.28M	1.04B	1.14B
Cash, Cash Equivalents and Short-Term Investments	5.35M	13.64M	16.69M	54.79M	63.55M
Total Debt	586.33M	463.84M	511.80M	450.86M	643.42M
Total Liabilities	806.96M	809.33M	827.80M	811.99M	1.04B
Stockholders Equity	-59.41M	-9.02M	158.48M	225.47M	93.38M
Cash Flow
Free Cash Flow	-133.42M	65.24M	-53.80M	103.97M	-66.30M
Operating Cash Flow	-117.59M	92.80M	-8.22M	133.28M	-35.72M
Investing Cash Flow	-15.83M	-27.79M	-45.95M	-29.29M	-30.37M
Financing Cash Flow	128.40M	-68.27M	17.06M	-112.74M	60.93M

Children's Place Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.71
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLCE, the sentiment is Neutral. The current price of 5.71 is above the 20-day moving average (MA) of 5.12, above the 50-day MA of 5.22, and below the 200-day MA of 8.97, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 55.88 is Neutral, neither overbought nor oversold. The STOCH value of 57.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLCE.

Children's Place Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRI	68 Neutral	$1.19B	7.51	18.91%	8.09%	-3.39%	-28.96%
GCO	63 Neutral	$262.25M	―	-3.07%	―	1.85%	22.34%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
DBI	57 Neutral	$165.52M	―	-9.20%	5.97%	-4.22%	-386.70%
FL	55 Neutral	$2.40B	194.63	-12.85%	―	-2.62%	0.93%
CTRN	52 Neutral	$252.31M	―	-29.52%	―	1.85%	-337.77%
PLCE	46 Neutral	$133.23M	―	-521.67%	―	-12.15%	75.86%

Children's Place Corporate Events

Children’s Place Appoints New Principal Accounting Officer

On July 2, 2025, The Children’s Place, Inc. announced a significant leadership change with John Szczepanski being appointed as the Principal Accounting Officer, succeeding Laura Lentini, who has left the company. The departure of Ms. Lentini was amicable, with no disagreements regarding the company’s operations, policies, or practices.

The most recent analyst rating on (PLCE) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Children’s Place stock, see the PLCE Stock Forecast page.

Children’s Place Stockholders Approve Charter Amendments

At the Annual Meeting of Stockholders on May 7, 2025, Children’s Place stockholders approved several amendments to the company’s charter. These changes include allowing stockholders to act by written consent without a meeting, giving stockholders the right to fill board vacancies, and making housekeeping amendments, which were filed with the Delaware Secretary of State on the same day.

Children’s Place Announces Key Decisions at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 7, 2025, The Children’s Place, Inc. announced several key decisions. Stockholders voted on the election of six directors, ratified the appointment of BDO USA, P.C. as the independent accounting firm, and approved amendments to the company’s charter regarding stockholder rights and board vacancies. These decisions are expected to impact the company’s governance and operational strategies moving forward.