Children's Place Inc. (The) Common Stock (PLCE)

FairStock Score: 15/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I seek durable competitive advantages and consistent earnings. The Children's Place is an omni-channel children's apparel retailer with several brands, but the filed numbers show severe pressure. Revenue fell from $1.6B in fiscal 2023, the year ended 2024-02-03, to $1.4B in fiscal 2024, the year ended 2025-02-01, and $1.2B in fiscal 2025, the year ended 2026-01-31. Net losses were $154.5M in fiscal 2023, $57.8M in fiscal 2024, and $88.3M in fiscal 2025. In fiscal Q1 2026, the quarter ended 2026-05-02, revenue was $215.2M and net loss was $53.2M; in fiscal Q2 2026, the quarter ended 2026-08-01, revenue was $241.8M and net loss was $31.0M. That is not a moat; children's apparel is competitive with low switching costs. Financial health is poor: FairStock's Altman Z-Score is -0.49, ROCE is -6.66%, and FairStock Score is 15/100. The P/E of -0.21 is meaningless with negative EPS. Yet trailing twelve-month free cash flow is $23.0M, an 81.5% FCF yield on the $28.2M market cap at the 2026-10-13 close. That single positive may reflect working-capital swings or cost cuts, not durable earning power. With a beta of 1.98 and losses in each of the last four years, this is a speculative distressed situation. Graham would demand a clear margin of safety in proven earning power or assets; I do not see it here.

In plain English: Children's Place sells children's clothing and accessories through stores and online. The business looks weak: it has lost money for years, and sales fell from $1.6 billion in the year ended 2024-02-03 to $1.2 billion in the year ended 2026-01-31. At $1.27 on October 13, 2026, the price is very low, but because the company is not earning a profit, it is hard to call it clearly cheap on its numbers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer