📊 CTRN Key Takeaways
Is Citi Trends Inc (CTRN) a Good Investment?
Despite solid 8.9% revenue growth and doubled net income, Citi Trends operates with critically thin margins (0.6% net, 0.5% operating) and generates negligible free cash flow of $624k, with CapEx consuming nearly all operating cash. Weak capital returns (ROE 4.5%, ROA 1.1%) combined with a deteriorated quick ratio of 0.46x signal operational stress in a challenging discount retail environment with minimal margin for error.
Citi Trends' fundamentals are weak: revenue growth is barely positive while profitability remains negative at the operating and net levels, indicating that the business is not currently converting sales into earnings. Financial health is still manageable because leverage is not extreme and cash remains positive, but thin liquidity, negative free cash flow, and poor interest coverage make the turnaround dependent on margin recovery and stronger operating cash generation.
Citi Trends Inc Key Strengths (CTRN)
- Revenue growth of 8.9% YoY demonstrates market demand in competitive retail sector
- Strong interest coverage ratio of 48.8x and moderate debt-to-equity of 0.36x indicate no immediate debt distress
- Positive operating cash flow of $21.0M confirms core business generates cash from operations
- Revenue remained slightly positive year over year, showing the business has not collapsed on the top line
- Balance sheet leverage is moderate with debt/equity of 0.39x and positive cash of $51.10M
- Gross margin of 28.9% suggests some underlying merchandise margin potential if operating costs are better controlled
CTRN Stock Risks: Citi Trends Inc Investment Risks
- Negligible free cash flow of $624k leaves nothing for shareholder returns or debt reduction after meeting CapEx needs
- Net margin of 0.6% and operating margin of 0.5% provide virtually no buffer against sales declines or cost inflation
- Quick ratio of 0.46x signals working capital stress and likely inventory management challenges typical of distressed retailers
- Extremely weak capital returns (ROE 4.5%, ROA 1.1%) indicate poor capital allocation efficiency
- High cyclicality and competitive intensity in discount apparel retail with limited pricing power
- Operating margin is negative and interest coverage is deeply negative, showing weak earnings support for the capital structure
- Free cash flow is negative due to low operating cash flow and ongoing capital spending
- Liquidity is tight with a 1.07x current ratio and a 0.38x quick ratio, limiting flexibility if performance weakens further
Key Metrics to Watch
- Free cash flow generation and capital expenditure trend relative to operating cash flow
- Quick ratio and days inventory outstanding to assess working capital health
- Operating margin and gross margin trends for signs of pricing power or cost control
- Same-store sales growth and inventory levels for early warning of demand deterioration
- Operating margin and gross margin progression
- Operating cash flow and free cash flow trend
Citi Trends Inc (CTRN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.1% FCF margin may limit capital allocation flexibility.
CTRN Profit Margin, ROE & Profitability Analysis
CTRN vs Consumer Sector: How Citi Trends Inc Compares
How Citi Trends Inc compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Citi Trends Inc Stock Overvalued? CTRN Valuation Analysis 2026
Based on fundamental analysis, Citi Trends Inc has mixed fundamental signals relative to the Consumer sector in 2026.
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.
Citi Trends Inc Balance Sheet: CTRN Debt, Cash & Liquidity
CTRN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Citi Trends Inc's revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $-1.46 indicates the company is currently unprofitable.
CTRN Revenue Growth, EPS Growth & YoY Performance
CTRN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $179.1M | $871.0K | $-0.27 |
| Q2 2025 | $176.6M | $871.0K | $0.46 |
| Q1 2025 | $186.3M | $871.0K | $0.11 |
| Q3 2024 | $179.1M | -$15.5M | $-0.47 |
| Q2 2024 | $173.6M | -$11.7M | $-0.61 |
| Q1 2024 | $179.7M | -$3.4M | $-0.42 |
| Q3 2023 | $179.5M | -$15.5M | $-0.47 |
| Q2 2023 | $173.6M | -$11.7M | $-0.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Citi Trends Inc Dividends, Buybacks & Capital Allocation
CTRN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Citi Trends Inc (CIK: 0001318484)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTRN
What is the AI rating for CTRN?
Citi Trends Inc (CTRN) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTRN's key strengths?
Claude: Revenue growth of 8.9% YoY demonstrates market demand in competitive retail sector. Strong interest coverage ratio of 48.8x and moderate debt-to-equity of 0.36x indicate no immediate debt distress. ChatGPT: Revenue remained slightly positive year over year, showing the business has not collapsed on the top line. Balance sheet leverage is moderate with debt/equity of 0.39x and positive cash of $51.10M.
What are the risks of investing in CTRN?
Claude: Negligible free cash flow of $624k leaves nothing for shareholder returns or debt reduction after meeting CapEx needs. Net margin of 0.6% and operating margin of 0.5% provide virtually no buffer against sales declines or cost inflation. ChatGPT: Operating margin is negative and interest coverage is deeply negative, showing weak earnings support for the capital structure. Free cash flow is negative due to low operating cash flow and ongoing capital spending.
What is CTRN's revenue and growth?
Citi Trends Inc reported revenue of $820.0M.
Does CTRN pay dividends?
Citi Trends Inc pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find CTRN SEC filings?
Official SEC filings for Citi Trends Inc (CIK: 0001318484) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTRN's EPS?
Citi Trends Inc has a diluted EPS of $0.63.
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 grade reflects both perspectives for balanced insights.
What is CTRN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Citi Trends Inc has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CTRN stock overvalued or undervalued?
Valuation metrics for CTRN: ROE of 4.5% (sector avg: 18%), net margin of 0.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is CTRN's AI grade for 2026?
Our dual AI analysis gives Citi Trends Inc a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CTRN's free cash flow?
Citi Trends Inc's operating cash flow is $21.0M, with capital expenditures of $20.3M. FCF margin is 0.1%.
How does CTRN compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 0.6% (avg: 8%), ROE 4.5% (avg: 18%), current ratio 1.11 (avg: 1.5).