As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Children’s Place Inc (NASDAQ: PLCE)
Children’s Place Inc 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. The company leases all of its retail stores, and most are located in malls. Children’s Place has one distribution center in the United States and one in Canada to support operations in those countries. It uses third-party providers to support operations in other countries. The company sources its product from well over 100 vendors, which are primarily located in Asia.
A quick look at the share price history (below) over the past twelve months shows that the price is down 28%. Here’s why the company is undervalued.
Summary
Market Cap: $729 Million
Enterprise Value: $1.13 Billion
Operating Earnings
Operating Earnings: $280 Million
Acquirer’s Multiple
Acquirer’s Multiple: 4.02
Free Cash Flow (TTM)
Free Cash Flow: $104 Million
FCF/EV Yield
FCF/EV Yield: 14%
Other Indicators
Piotroski F-Score: 8
Altman Z-Score: 3.34
Beneish M-Score: -2.74
Shareholder Yield
Shareholder Yield: 11.52%
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