Citi Trends Valuation
| CTRN Stock | USD 22.16 0.62 2.88% |
At this time, the firm appears to be undervalued. Citi Trends shows a prevailing Real Value of $25.61 per share. The current price of the firm is $22.16. Our model approximates the value of Citi Trends from analyzing the firm fundamentals such as Current Valuation of 366.23 M, return on equity of -0.18, and Profit Margin of (0.03) % as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Citi Trends' price fluctuation is not too volatile at this time. Calculation of the real value of Citi Trends is based on 3 months time horizon. Increasing Citi Trends' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Citi Trends is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Citi Stock. However, Citi Trends' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 22.16 | Real 25.61 | Hype 22.1 | Naive 21.91 |
The intrinsic value of Citi Trends' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Citi Trends' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Citi Trends helps investors to forecast how Citi stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Citi Trends more accurately as focusing exclusively on Citi Trends' fundamentals will not take into account other important factors: Citi Trends Total Value Analysis
Citi Trends is currently projected to have valuation of 366.23 M with market capitalization of 187.61 M, debt of 234.65 M, and cash on hands of 27.91 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Citi Trends fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
366.23 M | 187.61 M | 234.65 M | 27.91 M |
Citi Trends Investor Information
About 13.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.38. Some equities with similar Price to Book (P/B) outperform the market in the long run. Citi Trends has Price/Earnings To Growth (PEG) ratio of 1.08. The entity recorded a loss per share of 3.06. The firm last dividend was issued on the 2nd of March 2020. Based on the key indicators related to Citi Trends' liquidity, profitability, solvency, and operating efficiency, Citi Trends is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Citi Trends Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Citi Trends has an asset utilization ratio of 144.19 percent. This suggests that the Company is making $1.44 for each dollar of assets. An increasing asset utilization means that Citi Trends is more efficient with each dollar of assets it utilizes for everyday operations.Citi Trends Ownership Allocation
The market capitalization of Citi Trends is $187.61 Million. The majority of Citi Trends outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Citi Trends to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Citi Trends. Please pay attention to any change in the institutional holdings of Citi Trends as this could imply that something significant has changed or is about to change at the company. Also note that nearly six hundred thirty-two thousand three hundred fourty-seven invesors are currently shorting Citi Trends expressing very little confidence in its future performance.Citi Trends Profitability Analysis
The company reported the previous year's revenue of 747.94 M. Net Loss for the year was (11.98 M) with profit before overhead, payroll, taxes, and interest of 282.38 M.About Citi Trends Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Citi Trends. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Citi Trends based exclusively on its fundamental and basic technical indicators. By analyzing Citi Trends's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Citi Trends's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Citi Trends. We calculate exposure to Citi Trends's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Citi Trends's related companies.Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia. Citi Trends operates under Apparel Retail classification in the United States and is traded on NASDAQ Exchange. It employs 3000 people.
Citi Trends Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 8.2 M | |
| Quarterly Earnings Growth Y O Y | -0.483 | |
| Forward Price Earnings | 3.8066 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Citi Trends. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Citi Stock, please use our How to Invest in Citi Trends guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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.
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.