Rent the Runway, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

thredUP, Inc.

Hour Loop, Inc.

1stdibs.com, Inc.

Lulu's Fashion Lounge Holdings, Inc.

Duluth Holdings, Inc.

The RealReal, Inc.

Rent the Runway, Inc.

1-800-FLOWERS.COM, Inc.

Torrid Holdings, Inc.

ContextLogic, Inc.

ICZOOM Group, Inc.

Why is Rent the Runway, Inc. ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of 2.87% and Operating profit at 10.47% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.36
DEBT-EQUITY RATIO (HY) Highest at -146.19 %
RAW MATERIAL COST(Y) Grown by 44.85% (YoY)
INTEREST(Q) Highest at USD 6.9 MM

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -45.91%, its profits have risen by 27.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -45.91% 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 E-Retail/ E-Commerce)

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

Is Rent the Runway, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rent the Runway, Inc.

-51.18%

-0.69

116.63%

S&P 500

12.66%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.87%

EBIT Growth (5y)

10.47%

EBIT to Interest (avg)

-2.36

Debt to EBITDA (avg)

6.25

Net Debt to Equity (avg)

-1.31

Sales to Capital Employed (avg)

1.65

Tax Ratio

0.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

64.00%

ROCE (avg)

ROE (avg)

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

-0.17

EV to EBIT

-6.01

EV to EBITDA

4.35

EV to Capital Employed

4.84

EV to Sales

1.01

PEG Ratio

Dividend Yield

ROCE (Latest)

-80.60%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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 3.9 MM

NET PROFIT(HY)

Higher at USD -52.5 MM

NET SALES(Q)

Highest at USD 80.9 MM

-15What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -146.19 %

RAW MATERIAL COST(Y)

Grown by 44.85% (YoY

INTEREST(Q)

Highest at USD 6.9 MM

PRE-TAX PROFIT(Q)

Lowest at USD -26.4 MM

NET PROFIT(Q)

Lowest at USD -26.4 MM

Here's what is working for Rent the Runway, Inc.

Operating Cash Flow

Highest at USD 3.9 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 Sales

Highest at USD 80.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Depreciation

Highest at USD 36.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Rent the Runway, Inc.

Pre-Tax Profit

At USD -26.4 MM has Fallen at -43.67%

over average net sales of the previous four periods of USD -18.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -26.4 MM has Fallen at -42.7%

over average net sales of the previous four periods of USD -18.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at -146.19 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 6.9 MM

in the last five periods and Increased by 9.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD -26.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -26.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 44.85% (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