One-glance verdict
Undervalued
Fundamentals snapshot
Tile Shop Holdings, Inc.
TTSH · PNK · Consumer Cyclical · Home Improvement Retail
Current price
$2.00
52-week range
$1.50 - $7.45
Market cap
$79.64M
Balance sheet
Distressed
-141.80x Concerning
Net debt $149.72M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Operating margin compressed from 5.7% to -5.7% over 3 years.
- Risk Return on equity was -4.3% last year — the company lost money on shareholders' equity.
What this company does
Tile Shop Holdings, Inc.
Tile Shop is a specialty retailer that sells a wide variety of floor and wall tiles, from natural stone like marble to man-made ceramic, plus all the tools and materials needed for installation. The company makes money selling these products to homeowners and contractors, so its financial health is closely tied to the home renovation and new construction markets. A key factor for their business is managing their supply chain (the network that gets products from the factory to the store) to ensure popular tiles are always in stock for customers.
How the company got here
Tile Shop Holdings was founded in 1985 as a specialty retailer of tiles. The company grew by opening a network of large showrooms across the United States, currently operating around 140 stores. It became a publicly traded company in 2012, which means its shares could be bought and sold by the public on the stock market. A key part of its strategy has been to offer a high-end showroom experience and a wide variety of products to attract both homeowners and professional contractors. More recently, the company has faced challenges from larger competitors and slowing sales, leading it to focus on cost management and a plan to delist its stock from the Nasdaq stock exchange.
What it actually does
The Tile Shop is a specialty store that sells a wide variety of flooring and wall tiles. Think of them as a focused version of a big home improvement store, but dealing almost exclusively with tiles made from materials like natural stone (marble, granite, travertine) and man-made materials (ceramic, porcelain, glass, and luxury vinyl). In addition to the tiles themselves, they sell all the necessary supplies for installation projects, such as grout (the filler between tiles), adhesives, and tools. The company aims to be a one-stop shop for a tile project, providing design advice and customer service in its large showrooms.
Specialty Retail of Tile and Accessories
The company operates as a single business focused on selling tile and related products directly to customers. This is its only significant way of making money. Customers, who are typically homeowners doing a renovation or professional contractors, pay for the physical goods at the point of sale, either in one of the 140 showrooms or online. This retail business includes not just the tiles, but also higher-margin (meaning, more profitable per sale) items like installation materials and accessories, which helps the company's overall profitability. The company also sells products under its own private-label brands, such as Superior Adhesives & Chemicals.
What management is betting on now
Management is currently focused on navigating a challenging market by controlling costs and improving efficiency. This has included closing distribution centers and reducing its corporate workforce to better manage expenses. They are also concentrating on offering exclusive products and designer collaborations to stand out from larger competitors like Home Depot and Floor & Decor. A major strategic move is the plan to delist the company's stock from the public market, which can reduce the costs and complexities of being a publicly traded company. The company is also working to grow its e-commerce (online sales) capabilities to reach more customers directly.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q1
$15.87M
FY2024 Q2
$1.32M
FY2024 Q3
$-445.00K
FY2024 Q4
$-4.18M
FY2025 Q1
$6.37M
FY2025 Q2
$645.00K
FY2025 Q3
$-3.68M
FY2025 Q4
$-7.10M
Revenue
$77.49M
Net income
$-3.44M
Diluted EPS
-0.08
Operating cash flow
$-5.46M
Free cash flow
$-7.10M
Fetching…
Sources
Revenue
$83.06M
Net income
$-1.61M
Diluted EPS
-0.04
Operating cash flow
$-2.23M
Free cash flow
$-3.68M
Fetching…
Sources
Revenue
$88.26M
Net income
$392.00K
Diluted EPS
0.01
Operating cash flow
$3.49M
Free cash flow
$645.00K
Fetching…
Sources
Revenue
$88.01M
Net income
$172.00K
Diluted EPS
0.00
Operating cash flow
$9.99M
Free cash flow
$6.37M
Fetching…
Sources
Revenue
$79.45M
Net income
$-628.00K
Diluted EPS
-0.01
Operating cash flow
$-1.40M
Free cash flow
$-4.18M
Fetching…
Sources
Revenue
$84.50M
Net income
$41.00K
Diluted EPS
0.00
Operating cash flow
$5.06M
Free cash flow
$-445.00K
Fetching…
Sources
Revenue
$91.38M
Net income
$1.22M
Diluted EPS
0.03
Operating cash flow
$4.86M
Free cash flow
$1.32M
Fetching…
Sources
Revenue
$91.73M
Net income
$1.69M
Diluted EPS
0.04
Operating cash flow
$18.59M
Free cash flow
$15.87M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.76 vs current price $2.00
Our most-likely fair value is $8.76 a share — about 337.9% above today's price of $2.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $149.7M. Interest coverage -141.8x.
Net debt
$149.72M
Interest coverage
-141.80x
Tile Shop Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
TTSH
BASELINE
Tile Shop Holdings, Inc.
Total debt $159.84M Interest coverage -141.80x This is the baseline the peer rows are being compared against.
Total debt $2.01B Interest coverage 23.97x This peer still has a real interest-payment cushion, while TTSH does not.
Total debt $82.71M Interest coverage 160.10x This peer still has a real interest-payment cushion, while TTSH does not.
Total debt $230.71M Interest coverage 4.13x This peer still has a real interest-payment cushion, while TTSH does not.
Total debt $225.16M Interest coverage 1.08x This peer still has a real interest-payment cushion, while TTSH does not.
What you should know
The case for and against TTSH
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Operating margin compressed from 5.7% to -5.7% over 3 years.
-
Return on equity was -4.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
8.33x
P/B
0.91x
P/S
0.24x
EV/EBITDA
23.20x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
63.8%
Operating margin
-5.7%
Net margin
-1.3%
ROE
-4.3%
ROA
-1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.83x
Current ratio
1.43x
Quick ratio
0.19x
Total debt
$159.84M
Total cash
$10.12M
Growth
How the business has been compounding
Revenue TTM
$336.82M
Revenue 5Y CAGR
-2.4%
EPS TTM
-0.10
EPS 5Y CAGR
-44.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.79M
Free CF TTM
$-3.77M
FCF margin
-1.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2021-11-18