Tile Shop Holdings (TTS) In A Perilous Reversal

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Tile Shop Holdings ( TTS) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tile Shop Holdings as such a stock due to the following factors:

  • TTS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.7 million.
  • TTS has traded 87,279 shares today.
  • TTS is down 5.6% today.
  • TTS was up 9.3% yesterday.

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More details on TTS:

Tile Shop Holdings, Inc. operates as a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States. Currently there are 3 analysts that rate Tile Shop Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Tile Shop Holdings has been 1.2 million shares per day over the past 30 days. Tile Shop has a market cap of $835.5 million and is part of the services sector and retail industry. The stock has a beta of 0.05 and a short float of 15.7% with 0.69 days to cover. Shares are down 3% year to date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tile Shop Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • TTS's revenue growth has slightly outpaced the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 28.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 ($0.44 versus -$1.59).
  • In its most recent trading session, TTS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
  • 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, the net profit margin of 7.13% trails the industry average.
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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