ScoreWhy is Rent the Runway, Inc. ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 9.72% and Operating profit at 9.11% 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
2
The company declared negative results in Apr'25 after positive results in Jan'25
- RAW MATERIAL COST(Y) Grown by 24.73% (YoY)
3
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 13.99%, its profits have fallen by -4.5%
4
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -17.3% over the previous quarter and currently hold 2.08% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
Real-Time Research ReportHow 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.
16.83%
-0.72
114.94%
S&P 500
17.99%
0.93
19.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.72%
EBIT Growth (5y)
9.11%
EBIT to Interest (avg)
-2.36
Debt to EBITDA (avg)
6.25
Net Debt to Equity (avg)
-1.31
Sales to Capital Employed (avg)
1.89
Tax Ratio
0.68%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
6.66%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
-4.25
EV to EBIT
-4.07
EV to EBITDA
3.53
EV to Capital Employed
3.46
EV to Sales
0.82
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-84.93%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET PROFIT(HY)
Higher at USD -42 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -419.09 %
NET SALES(Q)
Highest at USD 87.6 MM
OPERATING PROFIT(Q)
Highest at USD 24 MM
EPS(Q)
Highest at USD 13.65
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 24.73% (YoY
Here's what is working for Rent the Runway, Inc.
Net Profit
Higher at USD -42 MM
than preceding 12 month period ended Oct 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (USD MM)
Net Sales
Highest at USD 87.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 24 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
EPS
Highest at USD 13.65
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at -419.09 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 40.2 MM
in the last five periodsMOJO 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.
Raw Material Cost
Grown by 24.73% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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