This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Tile Shop Holdings (TTS) Is Down Today

NEW YORK (TheStreet) -- Tile Shop Holdings (TTS - Get Report) was plunging 8.2% to $13.51 on Tuesday after the retailer fired CEO Robert Rucker's brother-in-law, Fumitake Nishi, once an independent investigation discovered he had committed "multiple violations of the company's business ethics policy," according to its press release.

The violations stemmed from Tile Shop's relationship with Beijing Pingxiu, a licensed Chinese export trading company owned by Nishi that Tile Shop and some of its Chinese vendors used. Nishi received $1.1 million in illicit "consulting services" fees, according to the investigation.

Both Robert W. Baird and Credit Suisse lowered their target prices on the stock in the wake of the news. Baird downgraded Tile Shop to "neutral" from "outperform" and lowered its target price to $13 from $24, while Credit Suisse lowered its target price to $20 from $22 and estimates for 2013 and 2014 to 38 cents and 47 cents, respectively.

"The issues appear to be isolated to this one individual, based on the findings, and there was no evidence that TTS' results had been overstated because of those relationships," Credit Suisse writes in its report.

Must Read: IBM (IBM) Declares Quarterly Dividend of 95c

TheStreet Ratings team rates TILE SHOP HOLDINGS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate TILE SHOP HOLDINGS INC (TTS) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio of 1.18 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.25, which clearly demonstrates the inability to cover short-term cash needs.
  • The gross profit margin for TILE SHOP HOLDINGS INC is currently very high, coming in at 76.61%. Regardless of TTS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TTS's net profit margin of 7.13% compares favorably to the industry average.
  • Compared to other companies in the Specialty Retail industry and the overall market, TILE SHOP HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • TTS has underperformed the S&P 500 Index, declining 8.39% from its price level of one year ago.
  • TILE SHOP HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.43 versus -$1.59).
  • You can view the full analysis from the report here: TTS Ratings Report

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TTS $17.79 0.17%
TSLA $223.09 -4.00%
YHOO $36.00 -0.03%
AAPL $94.33 -0.89%
FB $117.95 0.44%


Chart of I:DJI
DOW 17,666.88 -84.03 -0.47%
S&P 500 2,051.44 -11.93 -0.58%
NASDAQ 4,729.3330 -33.8910 -0.71%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs