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REALREAL INC/THE (REAL) Stock Fundamental Analysis

NASDAQ:REAL - Nasdaq - US88339P1012 - Common Stock - Currency: USD

5.76  -0.32 (-5.26%)

After market: 5.65 -0.11 (-1.91%)

Fundamental Rating

2

REAL gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the profitability and financial health of REAL have multiple concerns. REAL is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

REAL had negative earnings in the past year.
In the past year REAL had a positive cash flow from operations.
REAL had negative earnings in each of the past 5 years.
REAL had negative operating cash flow in 4 of the past 5 years.
REAL Yearly Net Income VS EBIT VS OCF VS FCFREAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 -50M -100M -150M -200M

1.2 Ratios

REAL has a worse Return On Assets (-10.17%) than 75.41% of its industry peers.
Industry RankSector Rank
ROA -10.17%
ROE N/A
ROIC N/A
ROA(3y)-33.77%
ROA(5y)-32.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
REAL Yearly ROA, ROE, ROICREAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K

1.3 Margins

The Gross Margin of REAL (74.63%) is better than 96.72% of its industry peers.
REAL's Gross Margin has improved in the last couple of years.
REAL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.63%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.42%
GM growth 5Y3.19%
REAL Yearly Profit, Operating, Gross MarginsREAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

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0

2. Health

2.1 Basic Checks

REAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for REAL has been increased compared to 1 year ago.
REAL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for REAL is higher compared to a year ago.
REAL Yearly Shares OutstandingREAL Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
REAL Yearly Total Debt VS Total AssetsREAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

REAL has an Altman-Z score of -2.58. This is a bad value and indicates that REAL is not financially healthy and even has some risk of bankruptcy.
REAL has a Altman-Z score of -2.58. This is amonst the worse of the industry: REAL underperforms 88.52% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -2.58
ROIC/WACCN/A
WACC8.12%
REAL Yearly LT Debt VS Equity VS FCFREAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M

2.3 Liquidity

A Current Ratio of 0.87 indicates that REAL may have some problems paying its short term obligations.
REAL's Current ratio of 0.87 is on the low side compared to the rest of the industry. REAL is outperformed by 81.15% of its industry peers.
A Quick Ratio of 0.76 indicates that REAL may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.76, REAL is doing good in the industry, outperforming 66.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.76
REAL Yearly Current Assets VS Current LiabilitesREAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 51.56% over the past year.
Looking at the last year, REAL shows a quite strong growth in Revenue. The Revenue has grown by 11.87% in the last year.
The Revenue has been growing by 13.67% on average over the past years. This is quite good.
EPS 1Y (TTM)51.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)11.87%
Revenue growth 3Y8.69%
Revenue growth 5Y13.67%
Sales Q2Q%11.29%

3.2 Future

REAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.02% yearly.
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
EPS Next Y33.55%
EPS Next 2Y32.48%
EPS Next 3Y32.02%
EPS Next 5YN/A
Revenue Next Year9.53%
Revenue Next 2Y9.82%
Revenue Next 3Y9.49%
Revenue Next 5Y11.89%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
REAL Yearly Revenue VS EstimatesREAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B
REAL Yearly EPS VS EstimatesREAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 -0.5 -1 -1.5

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1

4. Valuation

4.1 Price/Earnings Ratio

REAL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year REAL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
REAL Price Earnings VS Forward Price EarningsREAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40 -60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
REAL Per share dataREAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

REAL's earnings are expected to grow with 32.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.48%
EPS Next 3Y32.02%

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0

5. Dividend

5.1 Amount

No dividends for REAL!.
Industry RankSector Rank
Dividend Yield N/A

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REALREAL INC/THE

NASDAQ:REAL (7/25/2025, 8:21:30 PM)

After market: 5.65 -0.11 (-1.91%)

5.76

-0.32 (-5.26%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-07 2025-08-07/amc
Inst Owners92.13%
Inst Owner Change1.14%
Ins Owners14.01%
Ins Owner Change-0.69%
Market Cap651.46M
Analysts78.33
Price Target10.2 (77.08%)
Short Float %22.33%
Short Ratio6.37
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.63%
Min EPS beat(2)7.73%
Max EPS beat(2)45.53%
EPS beat(4)3
Avg EPS beat(4)17.42%
Min EPS beat(4)-0.84%
Max EPS beat(4)45.53%
EPS beat(8)7
Avg EPS beat(8)24.55%
EPS beat(12)11
Avg EPS beat(12)21.54%
EPS beat(16)13
Avg EPS beat(16)16.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)-7.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.06
P/FCF N/A
P/OCF 318.87
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.31
EYN/A
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.02
OCFY0.31%
SpS5.45
BVpS-2.97
TBVpS-2.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -10.17%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.63%
FCFM N/A
ROA(3y)-33.77%
ROA(5y)-32.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.42%
GM growth 5Y3.19%
F-Score6
Asset Turnover1.54
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 85.34%
Cap/Sales 4.59%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.87
Quick Ratio 0.76
Altman-Z -2.58
F-Score6
WACC8.12%
ROIC/WACCN/A
Cap/Depr(3y)115.01%
Cap/Depr(5y)137.9%
Cap/Sales(3y)6.04%
Cap/Sales(5y)7.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y33.55%
EPS Next 2Y32.48%
EPS Next 3Y32.02%
EPS Next 5YN/A
Revenue 1Y (TTM)11.87%
Revenue growth 3Y8.69%
Revenue growth 5Y13.67%
Sales Q2Q%11.29%
Revenue Next Year9.53%
Revenue Next 2Y9.82%
Revenue Next 3Y9.49%
Revenue Next 5Y11.89%
EBIT growth 1Y45.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year151.7%
EBIT Next 3Y48.44%
EBIT Next 5Y32.95%
FCF growth 1Y77.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y102.81%
OCF growth 3YN/A
OCF growth 5YN/A