Rent the Runway Inc.
Find Ratings ReportsRENT THE RUNWAY INC's gross profit margin for the third quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased.
At the same time, stockholders' equity ("net worth") has significantly decreased by 358.03% from the same quarter last year.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 72.5 | 77.4 |
EBITDA ($mil) | -18.3 | -17.0 |
EBIT ($mil) | -21.8 | -20.9 |
Net Income ($mil) | -31.5 | -36.1 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 110.7 | 180.1 |
Total Assets ($mil) | 310.3 | 367.2 |
Total Debt ($mil) | 349.8 | 318.5 |
Equity ($mil) | -102.6 | -22.4 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 34.76 | 41.09 |
EBITDA Margin | -25.24 | -21.96 |
Operating Margin | -30.07 | -27.0 |
Sales Turnover | 0.96 | 0.78 |
Return on Assets | -36.93 | -41.33 |
Return on Equity | 0.0 | 0.0 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.85 | 2.61 |
Debt/Capital | 1.42 | 1.08 |
Interest Expense | 10.0 | 9.3 |
Interest Coverage | -2.18 | -2.25 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 69.64 | 64.7 |
Div / share | 0.0 | 0.0 |
EPS | -0.45 | -0.56 |
Book value / share | -1.47 | -0.35 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 888157.0 | 734561.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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RENT NM | Peers 16.70 | RENT NM | Peers 9.46 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. RENT's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RENT's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RENT NM | Peers 12.70 | RENT NA | Peers 1.38 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. RENT's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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RENT NM | Peers 4.53 | RENT 28.16 | Peers 101.55 | |||||||||||||||||||||
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RENT's P/B is negative making this valuation measure meaningless. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, RENT is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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RENT 0.09 | Peers 4.20 | RENT 4.45 | Peers 15.49 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RENT is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RENT significantly trails its peers on the basis of sales growth. |
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