Citi Trends Return On Equity vs. Price To Sales

CTRN Stock  USD 24.78  0.37  1.52%   
Based on Citi Trends' profitability indicators, Citi Trends is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Citi Trends' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.08)
Current Value
0.04256915
Quarterly Volatility
0.0725257
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Citi Trends' Price To Sales Ratio is very stable compared to the past year. As of the 16th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.06, while Days Sales Outstanding is likely to drop 0.53. At this time, Citi Trends' Net Income Per Share is very stable compared to the past year. As of the 16th of December 2024, Income Quality is likely to grow to 4.50, though Accumulated Other Comprehensive Income is likely to grow to (224.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.380.3812
Slightly Down
Slightly volatile
For Citi Trends profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Citi Trends to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Citi Trends utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Citi Trends's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Citi Trends over time as well as its relative position and ranking within its peers.
  
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Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Citi Trends. If investors know Citi will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Citi Trends listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.48)
Earnings Share
(3.06)
Revenue Per Share
91.639
Quarterly Revenue Growth
0.017
Return On Assets
(0.04)
The market value of Citi Trends is measured differently than its book value, which is the value of Citi that is recorded on the company's balance sheet. Investors also form their own opinion of Citi Trends' value that differs from its market value or its book value, called intrinsic value, which is Citi Trends' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Citi Trends' market value can be influenced by many factors that don't directly affect Citi Trends' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Citi Trends' value and its price as these two are different measures arrived at by different means. Investors typically determine if Citi Trends is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Citi Trends' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Citi Trends Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Citi Trends's current stock value. Our valuation model uses many indicators to compare Citi Trends value to that of its competitors to determine the firm's financial worth.
Citi Trends is rated below average in return on equity category among its peers. It is rated below average in price to sales category among its peers . At this time, Citi Trends' Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Citi Trends' earnings, one of the primary drivers of an investment's value.

Citi Price To Sales vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Citi Trends

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.15
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Citi Trends

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.28 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Citi Price To Sales Comparison

Citi Trends is currently under evaluation in price to sales category among its peers.

Citi Trends Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Citi Trends, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Citi Trends will eventually generate negative long term returns. The profitability progress is the general direction of Citi Trends' change in net profit over the period of time. It can combine multiple indicators of Citi Trends, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-236.3 M-224.5 M
Operating Income-19.5 M-18.5 M
Income Before Tax-15.9 M-15.1 M
Total Other Income Expense Net3.6 M3.7 M
Net Loss-12 M-11.4 M
Income Tax Expense-3.9 M-3.7 M
Net Income Applicable To Common Shares67.7 M71.1 M
Net Loss-12 M-11.4 M
Non Operating Income Net Other1.8 M1.9 M
Net Interest Income3.6 M3.7 M
Interest Income3.9 M4.1 M
Change To Netincome68.4 M71.8 M
Net Income Per Share(1.46) 0.60 
Income Quality 0.80  4.50 
Net Income Per E B T 0.75  0.81 

Citi Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Citi Trends. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Citi Trends position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Citi Trends' important profitability drivers and their relationship over time.

Use Citi Trends in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Citi Trends position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Citi Trends will appreciate offsetting losses from the drop in the long position's value.

Citi Trends Pair Trading

Citi Trends Pair Trading Analysis

The ability to find closely correlated positions to Citi Trends could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Citi Trends when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Citi Trends - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Citi Trends to buy it.
The correlation of Citi Trends is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Citi Trends moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Citi Trends moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Citi Trends can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Citi Trends position

In addition to having Citi Trends in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Small Value Funds Thematic Idea Now

Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 31 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Value Funds Theme or any other thematic opportunities.
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When determining whether Citi Trends offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Citi Trends' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Citi Trends Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Citi Trends Stock:
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To learn how to invest in Citi Stock, please use our How to Invest in Citi Trends guide.
You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
To fully project Citi Trends' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Citi Trends at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Citi Trends' income statement, its balance sheet, and the statement of cash flows.
Potential Citi Trends investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Citi Trends investors may work on each financial statement separately, they are all related. The changes in Citi Trends's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Citi Trends's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.