Torrid Holdings, 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Torrid Holdings, Inc.

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Why is Torrid Holdings, Inc. ?

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

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.24
PRE-TAX PROFIT(Q) At USD 2.05 MM has Fallen at -39.23%
OPERATING CASH FLOW(Y) Lowest at USD 6.66 MM
NET PROFIT(Q) At USD 1.57 MM has Fallen at -37.85%

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -73.91%, its profits have fallen by -15.8%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -14.97% over the previous quarter and currently hold 55.65% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Below par performance in long term as well as near term

Along with generating -73.91% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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 Torrid Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Torrid Holdings, Inc.

-61.61%

-1.01

82.13%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.70%

EBIT Growth (5y)

-5.49%

EBIT to Interest (avg)

2.24

Debt to EBITDA (avg)

1.94

Net Debt to Equity (avg)

-1.63

Sales to Capital Employed (avg)

8.15

Tax Ratio

25.39%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

93.49%

ROCE (avg)

1,639.13%

ROE (avg)

2,311.10%

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

-0.86

EV to EBIT

16.16

EV to EBITDA

4.63

EV to Capital Employed

4.84

EV to Sales

0.47

PEG Ratio

Dividend Yield

ROCE (Latest)

29.97%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

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

4What is working for the Company

PRE-TAX PROFIT(Q)

At USD 0.87 MM has Grown at 136.44%

NET PROFIT(Q)

At USD 0.41 MM has Grown at 123.54%

-15What is not working for the Company

NET PROFIT(HY)

At USD -7.7 MM has Grown at -360.87%

OPERATING CASH FLOW(Y)

Lowest at USD 15.8 MM

RAW MATERIAL COST(Y)

Grown by 7.57% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -189.65 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.43 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

Here's what is working for Torrid Holdings, Inc.

Pre-Tax Profit

At USD 0.87 MM has Grown at 136.44%

over average net sales of the previous four periods of USD -2.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.41 MM has Grown at 123.54%

over average net sales of the previous four periods of USD -1.76 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Here's what is not working for Torrid Holdings, Inc.

Operating Cash Flow

Lowest at USD 15.8 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at -189.65 %

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

Inventory Turnover Ratio

Lowest at 4.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.57% (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