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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Revolve Group, Inc.

thredUP, Inc.

Liquidity Services, Inc.

Beyond, Inc.

Petco Health & Wellness Company, Inc.

a.k.a. Brands Holding Corp.

Groupon, Inc.

1-800-FLOWERS.COM, Inc.

Torrid Holdings, Inc.

Newegg Commerce, Inc.

Farfetch Ltd.

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

Negative results in Jul 25

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 -71.40%, 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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -71.40% 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 Torrid Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Torrid Holdings, Inc.

-67.06%

-0.97

82.28%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

46.84%

EBIT Growth (5y)

13.21%

EBIT to Interest (avg)

2.24

Debt to EBITDA (avg)

1.94

Net Debt to Equity (avg)

-1.63

Sales to Capital Employed (avg)

8.04

Tax Ratio

25.39%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

93.11%

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

Industry P/E

Price to Book Value

-2.80

EV to EBIT

17.16

EV to EBITDA

6.30

EV to Capital Employed

7.06

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

41.12%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Bearish

OBV

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.33 times

-18What is not working for the Company

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%

RAW MATERIAL COST(Y)

Grown by 6.99% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -205.66 %

NET SALES(Q)

Lowest at USD 262.81 MM

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

Inventory Turnover Ratio

Highest at 5.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Pre-Tax Profit

At USD 2.05 MM has Fallen at -39.23%

over average net sales of the previous four periods of USD 3.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 1.57 MM has Fallen at -37.85%

over average net sales of the previous four periods of USD 2.52 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 6.66 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 262.81 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Debt-Equity Ratio

Highest at -205.66 %

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

Raw Material Cost

Grown by 6.99% (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