Citi Trends operates as a retailer of urban fashion apparel and accessories. The company was founded in 1946 and is based in Savannah, Georgia.
CTRN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Citi Trends Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Citi Trends Inc ranked in the 73th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Citi Trends Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 15.44; that's higher than 87.13% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Citi Trends Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 2.09% of tickers in our DCF set.
CTRN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 2.09% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TALN, SIG, LEE, SCVL, and HOV can be thought of as valuation peers to CTRN, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Citi Trends (CTRN) repaid $41.6M of borrowings under its revolving credit facility.Reinstates $30M share repurchase program. The Company expects to fund the share repurchase program from cash on hand. Reaffirms its Q3 of estimating a comparable store sales range of negative mid-single digits to flat with continued gross margin expansion...
Citi Trends (CTRN) reports Q2 comparable sales in reopened stores increased 32.2% exceeding expectations of mid to high single digits.Gross margin rate improved 390 bps to 41.2%, driven by full-priced sales.Operating margin rate grew to 12.2% vs. 0.1% year ago.The company is estimating a Q3 comparable store sales range of negative...
Citi Trends, Inc. (NASDAQ: CTRN), the leading value retailer of apparel, accessories and home goods for way less spend primarily for African American families in the United States, today provided a second quarter-to-date business update and announced the formation of the CitiCARES™ Council.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]