Purple Innovation, Inc. (PRPL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Helen of Troy Ltd.

HNI Corp.

Purple Innovation, Inc.

MasterBrand, Inc.

Sleep Number Corp.

Why is Purple Innovation, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of -20.45 times

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At USD 16.56 MM has Grown at 79.13%
RAW MATERIAL COST(Y) Grown by 6.88% (YoY)
CASH AND EQV(HY) Lowest at USD 49.3 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -48.23%, its profits have risen by 21.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -48.23% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Purple Innovation, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Purple Innovation, Inc.

-48.23%

-0.85

76.24%

S&P 500

19.75%

1.50

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.26%

EBIT Growth (5y)

-200.17%

EBIT to Interest (avg)

-9.24

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

50.01

Sales to Capital Employed (avg)

4.30

Tax Ratio

0.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

65.50%

ROCE (avg)

9.53%

ROE (avg)

10.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-2.75

EV to EBIT

-4.82

EV to EBITDA

-27.58

EV to Capital Employed

2.68

EV to Sales

0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

-55.69%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -7.77 MM

NET PROFIT(HY)

Higher at USD -32.68 MM

ROCE(HY)

Highest at 0%

-20What is not working for the Company

INTEREST(HY)

At USD 16.56 MM has Grown at 79.13%

RAW MATERIAL COST(Y)

Grown by 6.88% (YoY

CASH AND EQV(HY)

Lowest at USD 49.3 MM

NET SALES(Q)

Lowest at USD 95.73 MM

OPERATING PROFIT(Q)

Lowest at USD -12.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -12.97 %

PRE-TAX PROFIT(Q)

Lowest at USD -23.57 MM

NET PROFIT(Q)

Lowest at USD -23.58 MM

EPS(Q)

Lowest at USD -0.28

Here's what is working for Purple Innovation, Inc.

Operating Cash Flow

Highest at USD -7.77 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Here's what is not working for Purple Innovation, Inc.

Interest

At USD 16.56 MM has Grown at 79.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 95.73 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD -12.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -12.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -23.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -36.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -23.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

Fallen at -36.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 49.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.88% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales