TORRID HOLDINGS INC (CURV) Stock Fundamental Analysis
NYSE:CURV - New York Stock Exchange, Inc. - US89142B1070 - Common Stock - Currency: USD
Overall CURV gets a fundamental rating of 4 out of 10. We evaluated CURV against 122 industry peers in the Specialty Retail industry. While CURV is still in line with the averages on profitability rating, there are concerns on its financial health. CURV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CURV was profitable.
In the past year CURV had a positive cash flow from operations.
CURV had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CURV had a positive operating cash flow.
1.2 Ratios
CURV's Return On Assets of 2.23% is in line compared to the rest of the industry. CURV outperforms 56.56% of its industry peers.
CURV has a better Return On Invested Capital (14.50%) than 84.43% of its industry peers.
CURV had an Average Return On Invested Capital over the past 3 years of 19.24%. This is significantly above the industry average of 12.95%.
The 3 year average ROIC (19.24%) for CURV is well above the current ROIC(14.50%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | N/A | ||
| ROIC | 14.5% |
ROA(3y)5.1%
ROA(5y)2.78%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.24%
ROIC(5y)15.7%
1.3 Margins
Looking at the Profit Margin, with a value of 0.93%, CURV is in line with its industry, outperforming 55.74% of the companies in the same industry.
CURV's Profit Margin has declined in the last couple of years.
CURV has a better Operating Margin (4.32%) than 63.11% of its industry peers.
CURV's Operating Margin has declined in the last couple of years.
CURV's Gross Margin of 36.65% is in line compared to the rest of the industry. CURV outperforms 51.64% of its industry peers.
In the last couple of years the Gross Margin of CURV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | 0.93% | ||
| GM | 36.65% |
OM growth 3Y13.99%
OM growth 5Y-6.94%
PM growth 3YN/A
PM growth 5Y-18.22%
GM growth 3Y-3.3%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CURV is creating value.
Compared to 1 year ago, CURV has more shares outstanding
CURV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CURV has an improved debt to assets ratio.
2.2 Solvency
CURV has an Altman-Z score of 1.93. This is not the best score and indicates that CURV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, CURV is in line with its industry, outperforming 42.62% of the companies in the same industry.
CURV has a debt to FCF ratio of 13.40. This is a negative value and a sign of low solvency as CURV would need 13.40 years to pay back of all of its debts.
CURV's Debt to FCF ratio of 13.40 is in line compared to the rest of the industry. CURV outperforms 53.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.36
WACC10.63%
2.3 Liquidity
A Current Ratio of 0.87 indicates that CURV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, CURV is doing worse than 80.33% of the companies in the same industry.
CURV has a Quick Ratio of 0.87. This is a bad value and indicates that CURV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.23, CURV is not doing good in the industry: 84.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
CURV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.09%.
Measured over the past years, CURV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.48% on average per year.
CURV shows a decrease in Revenue. In the last year, the revenue decreased by -4.21%.
The Revenue has been growing slightly by 1.26% on average over the past years.
EPS 1Y (TTM)-9.09%
EPS 3YN/A
EPS 5Y-16.48%
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y-5.24%
Revenue growth 5Y1.26%
Sales Q2Q%-4.93%
3.2 Future
Based on estimates for the next years, CURV will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
The Revenue is expected to decrease by -2.35% on average over the next years.
EPS Next Y-18.95%
EPS Next 2Y9.57%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-3.78%
Revenue Next 3Y-2.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CURV is valuated quite expensively with a Price/Earnings ratio of 27.40.
CURV's Price/Earnings ratio is a bit cheaper when compared to the industry. CURV is cheaper than 60.66% of the companies in the same industry.
CURV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.48.
Based on the Price/Forward Earnings ratio of 14.26, the valuation of CURV can be described as correct.
Based on the Price/Forward Earnings ratio, CURV is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CURV to the average of the S&P500 Index (36.52), we can say CURV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
89.34% of the companies in the same industry are more expensive than CURV, based on the Enterprise Value to EBITDA ratio.
80.33% of the companies in the same industry are more expensive than CURV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 3.98 |
4.3 Compensation for Growth
CURV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.57%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
CURV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.74
-0.01 (-0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.96%
Inst Owner Change0%
Ins Owners7.42%
Ins Owner Change-22.07%
Market Cap271.37M
Analysts55
Price Target5.3 (93.43%)
Short Float %11.85%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.76%
Min EPS beat(2)22.55%
Max EPS beat(2)50.98%
EPS beat(4)3
Avg EPS beat(4)-13.91%
Min EPS beat(4)-129.71%
Max EPS beat(4)50.98%
EPS beat(8)6
Avg EPS beat(8)6.04%
EPS beat(12)7
Avg EPS beat(12)2.77%
EPS beat(16)11
Avg EPS beat(16)11.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-9.52%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.91%
PT rev (1m)-2.99%
PT rev (3m)-6.47%
EPS NQ rev (1m)-10.27%
EPS NQ rev (3m)-71.55%
EPS NY rev (1m)-6.97%
EPS NY rev (3m)-13.32%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-7.24%
Revenue NY rev (1m)-4.15%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 14.26 | ||
| P/S | 0.25 | ||
| P/FCF | 12.44 | ||
| P/OCF | 8.55 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.98 |
EPS(TTM)0.1
EY3.65%
EPS(NY)0.19
Fwd EY7.01%
FCF(TTM)0.22
FCFY8.04%
OCF(TTM)0.32
OCFY11.7%
SpS11
BVpS-1.86
TBVpS-1.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | N/A | ||
| ROCE | 21.47% | ||
| ROIC | 14.5% | ||
| ROICexc | 16.19% | ||
| ROICexgc | 16.89% | ||
| OM | 4.32% | ||
| PM (TTM) | 0.93% | ||
| GM | 36.65% | ||
| FCFM | 2% |
ROA(3y)5.1%
ROA(5y)2.78%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.24%
ROIC(5y)15.7%
ROICexc(3y)21.41%
ROICexc(5y)18.14%
ROICexgc(3y)22.22%
ROICexgc(5y)18.8%
ROCE(3y)29.27%
ROCE(5y)23.72%
ROICexcg growth 3Y22.64%
ROICexcg growth 5Y12.07%
ROICexc growth 3Y22.04%
ROICexc growth 5Y11.47%
OM growth 3Y13.99%
OM growth 5Y-6.94%
PM growth 3YN/A
PM growth 5Y-18.22%
GM growth 3Y-3.3%
GM growth 5Y-0.39%
F-Score6
Asset Turnover2.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.4 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 11.43% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 23.7% | ||
| Profit Quality | 216.34% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 1.93 |
F-Score6
WACC10.63%
ROIC/WACC1.36
Cap/Depr(3y)37.83%
Cap/Depr(5y)38.99%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.58%
Profit Quality(3y)196.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.09%
EPS 3YN/A
EPS 5Y-16.48%
EPS Q2Q%-50%
EPS Next Y-18.95%
EPS Next 2Y9.57%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y-5.24%
Revenue growth 5Y1.26%
Sales Q2Q%-4.93%
Revenue Next Year-5.18%
Revenue Next 2Y-3.78%
Revenue Next 3Y-2.35%
Revenue Next 5YN/A
EBIT growth 1Y-17.73%
EBIT growth 3Y8.01%
EBIT growth 5Y-5.77%
EBIT Next Year86.45%
EBIT Next 3Y28.97%
EBIT Next 5YN/A
FCF growth 1Y-33.88%
FCF growth 3Y-15.28%
FCF growth 5Y-2.85%
OCF growth 1Y-42.58%
OCF growth 3Y-13.89%
OCF growth 5Y-4.83%