📊 CTRN Key Takeaways
Is Citi Trends Inc (CTRN) a Good Investment?
Citi Trends exhibits fundamental operational inefficiency, converting a strong 73.7% gross margin into only a 3.2% operating margin, indicating severe cost control issues. While revenue growth of 8.9% and positive free cash flow are positive, the company's poor capital returns (6.2% ROE, 1.6% ROA) and weak liquidity position (0.53x quick ratio) suggest this is a distressed retail business that is not effectively leveraging its pricing power.
Citi Trends' fundamentals are weak: revenue growth is barely positive while profitability remains negative at the operating and net levels, indicating that the business is not currently converting sales into earnings. Financial health is still manageable because leverage is not extreme and cash remains positive, but thin liquidity, negative free cash flow, and poor interest coverage make the turnaround dependent on margin recovery and stronger operating cash generation.
Citi Trends Inc Key Strengths (CTRN)
- Strong gross margin of 73.7% indicates solid product pricing power and inventory management
- Healthy balance sheet with Debt/Equity of 0.33x and cash exceeding long-term debt
- Positive free cash flow of $15M (6.5% FCF margin) demonstrates cash generation capability
- Moderate revenue growth of 8.9% YoY shows market traction
- Excellent interest coverage ratio of 93.4x indicates financial stability on debt servicing
- Revenue remained slightly positive year over year, showing the business has not collapsed on the top line
- Balance sheet leverage is moderate with debt/equity of 0.39x and positive cash of $51.10M
- Gross margin of 28.9% suggests some underlying merchandise margin potential if operating costs are better controlled
CTRN Stock Risks: Citi Trends Inc Investment Risks
- Severely compressed operating margin of 3.2% despite 73.7% gross margin suggests SG&A consuming ~70% of revenue
- Weak quick ratio of 0.53x indicates liquidity constraints and heavy reliance on inventory conversion
- Poor capital efficiency with ROE of 6.2% and ROA of 1.6% showing minimal shareholder value creation
- Thin net margin of 3.4% leaves little room for adverse conditions or sectoral headwinds
- Apparel retail sector facing structural challenges with e-commerce competition and shifting consumer preferences
- Operating margin is negative and interest coverage is deeply negative, showing weak earnings support for the capital structure
- Free cash flow is negative due to low operating cash flow and ongoing capital spending
- Liquidity is tight with a 1.07x current ratio and a 0.38x quick ratio, limiting flexibility if performance weakens further
Key Metrics to Watch
- Operating margin trend and SG&A as percentage of revenue
- Quick ratio and inventory turnover ratios
- Free cash flow sustainability and operating cash flow stability
- Operating margin and gross margin progression
- Operating cash flow and free cash flow trend
Citi Trends Inc (CTRN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Citi Trends Inc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CTRN Profit Margin, ROE & Profitability Analysis
CTRN vs Consumer Sector: How Citi Trends Inc Compares
How Citi Trends Inc compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Citi Trends Inc Stock Overvalued? CTRN Valuation Analysis 2026
Based on fundamental analysis, Citi Trends Inc has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Citi Trends Inc Balance Sheet: CTRN Debt, Cash & Liquidity
CTRN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Citi Trends Inc's revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $-1.46 indicates the company is currently unprofitable.
CTRN Revenue Growth, EPS Growth & YoY Performance
CTRN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $201.7M | $871.0K | $0.11 |
| Q3 2025 | $179.1M | N/A | $-0.27 |
| Q2 2025 | $176.6M | N/A | $0.46 |
| Q1 2025 | $186.3M | N/A | $0.11 |
| Q3 2024 | $179.1M | N/A | $-0.47 |
| Q2 2024 | $173.6M | N/A | $-0.61 |
| Q1 2024 | $179.7M | N/A | $-0.42 |
| Q3 2023 | $179.5M | N/A | $-0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Citi Trends Inc Dividends, Buybacks & Capital Allocation
CTRN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Citi Trends Inc (CIK: 0001318484)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 12, 2026 | 4 | xslF345X06/tm2617805-7_4seq1.xml | View → |
| Jun 12, 2026 | 4 | xslF345X06/tm2617805-6_4seq1.xml | View → |
| Jun 12, 2026 | 4 | xslF345X06/tm2617805-5_4seq1.xml | View → |
| Jun 12, 2026 | 4 | xslF345X06/tm2617805-4_4seq1.xml | View → |
| Jun 12, 2026 | 4 | xslF345X06/tm2617805-3_4seq1.xml | View → |
❓ Frequently Asked Questions about CTRN
What is the AI rating for CTRN?
Citi Trends Inc (CTRN) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTRN's key strengths?
Claude: Strong gross margin of 73.7% indicates solid product pricing power and inventory management. Healthy balance sheet with Debt/Equity of 0.33x and cash exceeding long-term debt. ChatGPT: Revenue remained slightly positive year over year, showing the business has not collapsed on the top line. Balance sheet leverage is moderate with debt/equity of 0.39x and positive cash of $51.10M.
What are the risks of investing in CTRN?
Claude: Severely compressed operating margin of 3.2% despite 73.7% gross margin suggests SG&A consuming ~70% of revenue. Weak quick ratio of 0.53x indicates liquidity constraints and heavy reliance on inventory conversion. ChatGPT: Operating margin is negative and interest coverage is deeply negative, showing weak earnings support for the capital structure. Free cash flow is negative due to low operating cash flow and ongoing capital spending.
What is CTRN's revenue and growth?
Citi Trends Inc reported revenue of $230.9M.
Does CTRN pay dividends?
Citi Trends Inc pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find CTRN SEC filings?
Official SEC filings for Citi Trends Inc (CIK: 0001318484) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTRN's EPS?
Citi Trends Inc has a diluted EPS of $0.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CTRN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Citi Trends Inc has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CTRN stock overvalued or undervalued?
Valuation metrics for CTRN: ROE of 6.2% (sector avg: 18%), net margin of 3.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is CTRN's AI grade for 2026?
Our dual AI analysis gives Citi Trends Inc a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CTRN's free cash flow?
Citi Trends Inc's operating cash flow is $20.9M, with capital expenditures of $5.8M. FCF margin is 6.5%.
How does CTRN compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.4% (avg: 8%), ROE 6.2% (avg: 18%), current ratio 1.15 (avg: 1.5).