RENT Intrinsic Value Calculation – RENT THE RUNWAY Reports Total Revenue of USD 75.7 Million for Q2 FY2024
September 10, 2023
🌥️Earnings Overview
RENT THE RUNWAY ($NASDAQ:RENT) announced their financial results for the second quarter of FY2024 on September 8 2023, disclosing that their total revenue was USD 75.7 million, a decrease of 1.0% from the same period the year before. Contrastingly, their net income saw an increase compared to the previous year, reporting a figure of USD -26.8 million, a substantial improvement from the prior year’s number of -33.9 million.
Share Price
The news sent RTR’s stock price soaring early in the day, with prices reaching as high as $1.4. However, by the end of the day, the stock had plunged by 27.9%, closing at $1.0. In addition, the company’s subscription model has been a big hit with customers, while its long-term partnerships with major fashion designers have also helped to drive sales. Despite the significant downturn in stock prices, Rent the Runway remains optimistic about the future and hopes to continue to build on its past success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RENT. More…
| Total Revenues | Net Income | Net Margin |
| 302.7 | -119.2 | -36.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RENT. More…
| Operations | Investing | Financing |
| -18.8 | -49 | -1.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RENT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 304.4 | 380.4 | -1.11 |
Key Ratios Snapshot
Some of the financial key ratios for RENT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | – | -25.1% |
| FCF Margin | ROE | ROA |
| -31.7% | 71.5% | -15.6% |
Analysis – RENT Intrinsic Value Calculation
At GoodWhale, we have conducted an in-depth analysis of RENT THE RUNWAY’s fundamentals. Our proprietary Valuation Line has determined that the fair value of RENT THE RUNWAY share is around $4.2. Currently, RENT THE RUNWAY stock is being traded at $1.0, meaning its price is undervalued by an astonishing 76.4%. We believe that this analysis is proof that RENT THE RUNWAY is a great investment opportunity, and would advise potential investors to consider it seriously. More…
Peers
Rent the Runway Inc is a company that rents out designer clothing and accessories. The company has been in business since 2009 and has been extremely successful. However, there are several other companies that offer similar services, and they are all vying for the same customers. MYT Netherlands Parent BV, ThredUp Inc, and Zozo Inc are all Rent the Runway Inc’s competitors, and they are all trying to get a piece of the pie.
– MYT Netherlands Parent BV ($NYSE:MYTE)
MYT Netherlands Parent BV is a Dutch holding company that owns and operates a number of businesses in the Netherlands and abroad. The company has a market cap of 906.11M as of 2022 and a Return on Equity of 0.71%. MYT Netherlands Parent BV is a holding company that owns and operates businesses in the Netherlands and abroad. The company has a diversified portfolio of businesses including retail, real estate, healthcare, and technology. The company is headquartered in Amsterdam, the Netherlands.
– ThredUp Inc ($NASDAQ:TDUP)
ThredUP is an online consignment and thrift store, founded in 2009. The company offers a variety of secondhand clothing and accessories for women, men, and children. As of 2022, ThredUP has a market cap of 160.13M and a ROE of -28.07%. The company’s mission is to make secondhand shopping more sustainable and accessible. In addition to its online presence, ThredUP has brick-and-mortar locations in select cities across the United States.
– Zozo Inc ($TSE:3092)
Zozo Inc is a Japanese e-commerce company founded in 1998. The company operates the website Zozotown, the largest online fashion retailer in Japan. In addition to online sales, Zozo also operates brick-and-mortar stores and offers other services such as made-to-measure clothing and styling advice.
With a market cap of 912.9B as of 2022, Zozo is one of the largest companies in Japan. The company’s return on equity (ROE) is also very high at 58.51%. This means that the company is very efficient in using its shareholders’ equity to generate profits.
Zozo is a great example of a successful e-commerce company. The company has been able to grow its business by offering a convenient and easy-to-use online shopping platform for its customers. In addition, Zozo’s made-to-measure clothing service has been very popular with customers who want to get the perfect fit for their clothes.
Summary
Rent the Runway reported their Q2 earnings for FY2024 on September 8, 2023, showing that total revenue for the quarter was USD 75.7 million, a slight decrease from the prior year. Net income for the quarter was USD -26.8 million, an improvement over the -33.9 million reported the previous year. This news has affected RTR’s stock price, which has moved down since the announcement.
Investors may be concerned about the decreased revenue and should consider that the decrease in net income is a sign of longer-term market stability and profitability. Moving forward, investors should watch closely for continued improvements in net income, as well as any changes in revenue or other financial indicators.
Related Posts
Recent Posts
