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Tile Shop (TTSH)
NASDAQ:TTSH
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Tile Shop
(NASDAQ:TTSH)61Neutral
Tile Shop (TTSH) vs. S&P 500 (SPY)
Market Cap
$305.46M
Dividend YieldN/A
Average Volume (3M)93.32K
Price to Earnings (P/E)130.3
Beta (1Y)1.47
Revenue Growth-7.97%
EPS Growth-77.05%
CountryUS
Employees1,308
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.05
Shares Outstanding44,657,898
10 Day Avg. Volume132,004
30 Day Avg. Volume93,320
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.89
Price to Cash Flow (P/CF)-55.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Tile Shop Business Overview & Revenue Model
Company DescriptionTile Shop Holdings, Inc. (TTSH) is a specialty retailer focused on providing a wide range of high-quality tiles and related accessories. The company operates predominantly in the home improvement and construction sectors, offering an extensive selection of natural stone, ceramic, porcelain, and other man-made tiles. Additionally, the Tile Shop provides installation materials and tools to both DIY consumers and professional contractors, enhancing its comprehensive service offering.
How the Company Makes MoneyTile Shop makes money primarily through the retail sale of its tile products and related accessories. Its revenue model is based on direct sales from its network of retail stores across the United States, as well as through its online platform. Key revenue streams include the sale of tiles, installation materials, and tools. The company benefits from strategic partnerships with manufacturers to ensure a diverse product range and exclusive offerings, which contribute to its competitive edge in the market. Seasonal home improvement trends and the overall health of the real estate market are significant factors influencing the company's earnings.
Tile Shop Financial Statement Overview
Summary
Tile Shop's financial performance reveals challenges with declining revenues and profitability. The income statement shows a 7.97% revenue decline, and the net profit margin decreased significantly. The balance sheet is stable, with a debt-to-equity ratio of 1.16, but lower profitability is a concern. Cash flow is resilient, with strong operating cash flow, but reduced free cash flow indicates pressures.Income Statement
The income statement reveals a mixed performance for Tile Shop. The company experienced a revenue decline of 7.97% from 2023 to 2024, indicating challenges in maintaining sales growth. Gross profit margin for 2024 was approximately 65.64%, demonstrating efficient cost management despite lower revenues. However, the net profit margin was only 0.67%, a significant decrease from the previous year, highlighting challenges in controlling operating costs. EBIT and EBITDA margins also showed a downward trend, indicating pressure on earnings.58
Neutral
Balance Sheet
Tile Shop's balance sheet displays moderate strength with a debt-to-equity ratio of 1.16, suggesting a balanced approach to leveraging. The company maintains an equity ratio of 38.45%, indicating a healthy proportion of assets financed by equity. However, the return on equity decreased to 1.89%, reflecting lower profitability. The balance sheet remains stable with adequate equity backing, but the profitability concerns may pose risks.62
Positive
Cash Flow
The cash flow statement shows resilience in free cash flow, albeit lower than the previous year. Operating cash flow to net income ratio is strong at 11.68, showing effective conversion of earnings into cash. However, free cash flow decreased by 73.13% compared to 2023, indicating reduced cash generation after capital expenditures. The cash flow position remains stable, supported by efficient operating cash flow management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 347.07M | 377.15M | 394.70M | 370.70M | 325.06M | Gross Profit |
| 227.87M | 243.06M | 258.94M | 253.13M | 221.53M | EBIT |
| 3.52M | 16.16M | 22.61M | 20.61M | 6.38M | EBITDA |
| 3.52M | 37.39M | 73.53M | 72.82M | 6.38M | Net Income Common Stockholders |
| 2.32M | 10.07M | 15.70M | 14.77M | 6.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.96M | 8.62M | 5.95M | 9.36M | 9.62M | Total Assets |
| 319.60M | 316.67M | 345.82M | 340.76M | 342.69M | Total Debt |
| 142.58M | 139.96M | 176.62M | 143.45M | 149.90M | Net Debt |
| 121.62M | 131.34M | 170.67M | 134.09M | 140.28M | Total Liabilities |
| 196.69M | 196.99M | 237.05M | 218.53M | 203.63M | Stockholders Equity |
| 122.91M | 119.69M | 108.77M | 122.22M | 139.06M |
| Cash Flow | Free Cash Flow | |||
| 12.57M | 46.75M | -11.31M | 28.62M | 63.63M | Operating Cash Flow |
| 27.11M | 62.06M | 2.71M | 39.69M | 65.60M | Investing Cash Flow |
| -14.34M | -15.26M | -14.03M | -11.07M | -1.97M | Financing Cash Flow |
| -503.00K | -45.93M | 9.11M | -28.90M | -63.33M |
Tile Shop Technical Analysis
Negative
6.92
Price Trends
7.17
Negative
6.93
Negative
6.74
Positive
Market Momentum
-0.06
Positive
36.28
Neutral
11.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTSH, the sentiment is Negative. The current price of 6.92 is below the 20-day moving average (MA) of 7.40, below the 50-day MA of 7.17, and above the 200-day MA of 6.74, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.28 is Neutral, neither overbought nor oversold. The STOCH value of 11.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTSH.
Tile Shop Risk Analysis
Tile Shop disclosed 40 risk factors in its most recent earnings report. Tile Shop reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tile Shop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $374.30B | 25.27 | 385.37% | 2.39% | 4.48% | -1.27% | |
61 Neutral | $305.46M | 130.32 | 1.91% | ― | -7.97% | -77.05% | |
61 Neutral | $9.80B | 47.99 | 10.04% | ― | 0.95% | -16.97% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
59 Neutral | $137.02B | 19.86 | -51.07% | 1.88% | -3.13% | -7.21% | |
46 Neutral | $4.44B | ― | 17.86% | ― | -1.27% | 38.07% |
* Consumer Cyclical Sector Average
Performance Comparison
TTSH
Tile Shop
6.92
0.10
1.47%
HD
Home Depot
376.80
10.07
2.75%
LOW
Lowe's
242.66
6.05
2.56%
W
Wayfair
35.01
-23.80
-40.47%
FND
Floor & Decor Holdings
91.21
-29.63
-24.52%
Tile Shop Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -10.01% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging market environment for Tile Shop Holdings, Inc., with declines in comparable store sales and reduced gross margins in Q4. However, the company remains financially strong with no debt and a solid cash position, alongside growth in specific product lines and strategic initiatives aimed at improving future performance.Highlights
Cash Flow and Financial Position
Tile Shop Holdings, Inc. generated $27.1 million of operating cash flow in 2024, increasing their cash balance by over $12 million, ending the year with $21 million in cash and no bank debt.
Growth in Superior Product Line
The company reported growth in sales volumes of their relaunched Superior product line during the second half of 2024, providing a positive tailwind going into 2025.
Gross Margin Improvement for the Year
Gross margin rate improved by 130 basis points to 65.7% for the year 2024, driven by stabilizing international freight rates and reduced inventory purchasing costs.
Strategic Product Line Expansion
Initiatives to expand the selection of entry-level competitively priced products resulted in improved year-over-year sales and increased average order value.
Lowlights
Decrease in Comparable Store Sales
Comparable store sales decreased by 5.8% in Q4 and 7.8% for the year 2024, attributed to lower store traffic and challenging market conditions.
Reduction in SG&A Expenses
SG&A expenses decreased by $2.5 million in 2024 due to reduced depreciation, variable compensation, and advertising costs, partially offset by increased occupancy, IT, transportation, and audit costs.
Gross Margin Rate Decrease in Q4
Q4 2024 saw a 50 basis point decrease in gross margin rate to 64.2%, impacted by elevated inventory write-offs due to product transitions.
No Store Openings Planned for 2025
Due to market conditions, Tile Shop Holdings, Inc. plans to close two unprofitable stores and does not plan to open any new stores in 2025.
Company Guidance
In the Q4 2024 earnings call for Tile Shop Holdings, Inc., guidance was provided for several key metrics. The company reported a 5.8% decrease in comparable store sales for the fourth quarter and a 7.8% decrease for the full year, primarily due to reduced store traffic. Gross margin for the fourth quarter decreased by 50 basis points to 64.2% due to inventory write-offs, while the annual gross margin increased by 130 basis points to 65.7%, driven by lower inventory purchasing costs and stabilizing freight rates. SG&A expenses for the fourth quarter were reduced by $1.3 million compared to the previous year, with notable decreases in depreciation, variable compensation, and advertising costs. For the year, SG&A expenses decreased by $2.5 million to $224.4 million. The company ended 2024 with $21 million in cash and no debt, generating $27.1 million in operating cash flow for the year. Looking forward, Tile Shop Holdings plans to close two unprofitable stores in 2025, bringing the total store count to 140, and will not open any new stores in the year. The focus will be on selective investments and right-sizing the expense structure amidst ongoing industry challenges.Tile Shop Corporate Events
Executive/Board ChangesFinancial Disclosures
Tile Shop Promotes Joseph Kinder Amid Financial Report
Neutral
Feb 27, 2025
On February 25, 2025, Tile Shop’s Board of Directors approved salary increases for its executive officers and promoted Joseph Kinder to Senior Vice President, Chief Merchant Officer, with a detailed employment agreement outlining his transition to a non-executive role by 2027. The company also reported its financial results for the fourth quarter and full year of 2024, noting a decrease in net sales and comparable store sales, but maintained a strong gross margin and ended the year with no debt and significant cash reserves. Despite challenges in the home improvement sector, the company is optimistic about its strategic enhancements and product offerings for 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.