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

HNI Corp.

Arhaus, Inc.

Ethan Allen Interiors, Inc.

Leggett & Platt, Inc.

La-Z-Boy, Inc.

Hooker Furnishings Corp.

The Lovesac Co.

MasterBrand, Inc.

Purple Innovation, Inc.

Helen of Troy Ltd.

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 -1.00 times

Negative results in Sep 25

NET PROFIT(HY) At USD -30.83 MM has Grown at -306.99%
ROCE(HY) Lowest at -11,027.43%
INTEREST(Q) Highest at USD 8.2 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 -12.84%, its profits have risen by 21.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.84% 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.

-12.84%

-0.47

81.49%

S&P 500

11.87%

0.62

19.30%

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

69.33%

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

-2.74

EV to EBIT

-4.81

EV to EBITDA

-27.54

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

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -21.27 MM

NET PROFIT(HY)

Higher at USD -30.83 MM

RAW MATERIAL COST(Y)

Fallen by -5.82% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -622.69 %

-17What is not working for the Company

NET PROFIT(HY)

At USD -30.83 MM has Grown at -306.99%

ROCE(HY)

Lowest at -11,027.43%

INTEREST(Q)

Highest at USD 8.2 MM

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

Operating Cash Flow

Highest at USD -21.27 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)

Net Profit

Higher at USD -30.83 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -622.69 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.82% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

At USD 9.78 MM has Grown at 102.4%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

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

Net Profit

At USD -30.83 MM has Grown at -306.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

Highest at USD 8.2 MM

in the last five periods and Increased by 10% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)