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Childrens Place, Inc. (PLCE) Stock Fundamental Analysis & AI Rating 2026

PLCE Nasdaq Retail-Family Clothing Stores CIK: 0001041859
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2026-01-31
STRONG SELL
96% Conf
Pending
Analysis scheduled

📊 PLCE Key Takeaways

Revenue: $1.2B
Net Margin: -7.3%
Free Cash Flow: $-9.3M
Current Ratio: 1.03x
Debt/Equity: N/A
EPS: $-4.01
AI Rating: STRONG SELL with 96% confidence
Childrens Place, Inc. (PLCE) receives a STRONG SELL rating with 96% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $1.2B, net profit margin of -7.3%, Childrens Place, Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete PLCE stock analysis for 2026.

Is Childrens Place, Inc. (PLCE) a Good Investment?

Claude

Childrens Place exhibits severe financial distress with negative stockholders equity (-$54.2M), indicating balance sheet insolvency. Declining revenue (-12.8% YoY), negative operating margins (-4.7%), negative free cash flow (-$9.3M), and critically weak liquidity (quick ratio 0.19x) create an acute solvency crisis that threatens the company's viability.

Why Buy Childrens Place, Inc. Stock? PLCE Key Strengths

Claude
  • + Positive operating cash flow of $8.1M demonstrates some underlying business cash generation
  • + Gross margin of 29.9% shows retention of pricing power in core retail operations
  • + Maintains revenue base of $1.2B despite market pressures

PLCE Stock Risks: Childrens Place, Inc. Investment Risks

Claude
  • ! Negative stockholders equity of -$54.2M indicates technical balance sheet insolvency
  • ! Negative free cash flow of -$9.3M with only $5.5M cash reserves creates imminent liquidity crisis risk
  • ! Critical quick ratio of 0.19x shows severe inability to cover short-term obligations
  • ! Operating losses (-$57.2M) and inability to cover interest costs (interest coverage -1.9x) indicate operational non-viability
  • ! Debt burden of $107.4M is unmanageable given negative equity and weak cash generation
  • ! Revenue declining 12.8% YoY indicates market share loss or demand collapse

Key Metrics to Watch

Claude
  • * Quarterly revenue stabilization and return to growth trajectory
  • * Operating margin improvement toward breakeven and profitability
  • * Free cash flow trajectory and path to positive FCF
  • * Stockholders equity recovery from negative levels
  • * Cash balance sustainability and liquidity covenant compliance
  • * Debt restructuring or refinancing activity

Childrens Place, Inc. (PLCE) Financial Metrics & Key Ratios

Revenue
$1.2B
Net Income
$-88.3M
EPS (Diluted)
$-4.01
Free Cash Flow
$-9.3M
Total Assets
$670.3M
Cash Position
$5.5M

💡 AI Analyst Insight

Childrens Place, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

PLCE Profit Margin, ROE & Profitability Analysis

Gross Margin 29.9%
Operating Margin -4.7%
Net Margin -7.3%
ROE N/A
ROA -13.2%
FCF Margin -0.8%

PLCE vs Consumer Sector: How Childrens Place, Inc. Compares

How Childrens Place, Inc. compares to Consumer sector averages

Net Margin
PLCE -7.3%
vs
Sector Avg 8.0%
PLCE Sector
ROE
PLCE 0.0%
vs
Sector Avg 18.0%
PLCE Sector
Current Ratio
PLCE 1.0x
vs
Sector Avg 1.5x
PLCE Sector
Debt/Equity
PLCE 0.0x
vs
Sector Avg 0.8x
PLCE Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Childrens Place, Inc. Stock Overvalued? PLCE Valuation Analysis 2026

Based on fundamental analysis, Childrens Place, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
N/A
Sector avg: 18%
Net Profit Margin
-7.3%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.8x

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.

Childrens Place, Inc. Balance Sheet: PLCE Debt, Cash & Liquidity

Current Ratio
1.03x
Quick Ratio
0.19x
Debt/Equity
N/A
Debt/Assets
108.1%
Interest Coverage
-1.90x
Long-term Debt
$107.4M

PLCE Revenue & Earnings Growth: 5-Year Financial Trend

PLCE 5-year financial data: Year 2021: Revenue $1.9B, Net Income $73.3M, EPS $4.68. Year 2022: Revenue $1.9B, Net Income -$140.4M, EPS $-9.59. Year 2024: Revenue $1.9B, Net Income $187.2M, EPS $12.59. Year 2025: Revenue $1.6B, Net Income -$154.5M, EPS $-12.34.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Childrens Place, Inc.'s revenue has declined by 16% over the 5-year period, indicating business contraction. The most recent EPS of $-12.34 indicates the company is currently unprofitable.

PLCE Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-0.8%
Free cash flow / Revenue

PLCE Quarterly Earnings & Performance

Quarterly financial performance data for Childrens Place, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $339.5M -$4.3M $-0.19
Q2 2025 $298.0M -$5.4M $-0.24
Q1 2025 $242.1M -$34.0M $-1.57
Q3 2024 $390.2M $20.1M $1.57
Q2 2024 $319.7M -$32.1M $-2.51
Q1 2024 $267.9M -$28.8M $-2.33
Q3 2023 $480.2M -$25.7M $-2.06
Q2 2023 $345.6M $6.5M $0.48

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Childrens Place, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$8.1M
Cash generated from operations
Stock Buybacks
$422.0K
Shares repurchased (TTM)
Capital Expenditures
$17.4M
Investment in assets
Dividends Paid
$1.7M
Returned to shareholders

PLCE SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Childrens Place, Inc. (CIK: 0001041859)

📋 Recent SEC Filings

Date Form Document Action
Apr 10, 2026 DEF 14A c115983_def14a-ixbrl.htm View →
Apr 10, 2026 10-K plce-20260131.htm View →
Feb 27, 2026 8-K tm267584d1_8k.htm View →
Feb 12, 2026 8-K tm266206d1_8k.htm View →
Feb 5, 2026 4 xslF345X05/tm265386-3_4seq1.xml View →

Frequently Asked Questions about PLCE

What is the AI rating for PLCE?

Childrens Place, Inc. (PLCE) has an AI rating of STRONG SELL with 96% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PLCE's key strengths?

Claude: Positive operating cash flow of $8.1M demonstrates some underlying business cash generation. Gross margin of 29.9% shows retention of pricing power in core retail operations.

What are the risks of investing in PLCE?

Claude: Negative stockholders equity of -$54.2M indicates technical balance sheet insolvency. Negative free cash flow of -$9.3M with only $5.5M cash reserves creates imminent liquidity crisis risk.

What is PLCE's revenue and growth?

Childrens Place, Inc. reported revenue of $1.2B.

Does PLCE pay dividends?

Childrens Place, Inc. pays dividends, with $1.7M distributed to shareholders in the trailing twelve months.

Where can I find PLCE SEC filings?

Official SEC filings for Childrens Place, Inc. (CIK: 0001041859) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PLCE's EPS?

Childrens Place, Inc. has a diluted EPS of $-4.01.

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 rating reflects both perspectives for balanced insights.

Is PLCE a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Childrens Place, Inc. has a STRONG SELL rating with 96% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PLCE stock overvalued or undervalued?

Valuation metrics for PLCE: ROE of N/A (sector avg: 18%), net margin of -7.3% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

Should I buy PLCE stock in 2026?

Our dual AI analysis gives Childrens Place, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PLCE's free cash flow?

Childrens Place, Inc.'s operating cash flow is $8.1M, with capital expenditures of $17.4M. FCF margin is -0.8%.

How does PLCE compare to other Consumer stocks?

Vs Consumer sector averages: Net margin -7.3% (avg: 8%), ROE N/A (avg: 18%), current ratio 1.03 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 14, 2026 | Data as of: 2026-01-31 | Powered by Claude AI