Tile Shop Intrinsic Value Calculation – Tile Shop Announces Second Quarter Earnings Results for FY2023
August 6, 2023
🌥️Earnings Overview
TILE SHOP ($NASDAQ:TTSH) announced their financial results for the quarter ending June 30, 2023 on August 3, 2023. Total revenue for the quarter was USD 98.6 million, an 8.4% drop compared to the same period in FY2022. Net income was reported at USD 5.1 million, a decrease of 26.5% from the same quarter in the prior year.
Market Price
TILE SHOP, the leading manufacturer and retailer of tiles, released their second-quarter earnings results for FY2023 on Thursday. The stock opened at $6.3 and closed at $5.8, marking a 10.0% decrease from the previous closing price of $6.4. This was an unexpected drop for investors, as the company had been one of the best performing in its sector over the past few quarters. Despite the immediate dip in stock prices, the TILE SHOP earnings report was mostly positive. The company attributed this growth to increased demand for their products, both within their retail stores and online.
Overall, despite the initial shock to investors, TILE SHOP appears to be on a strong financial footing. The company’s quarter-end results show that they are well-positioned to continue to grow their operations and expand into new markets. With a strong balance sheet and a well-respected brand, TILE SHOP is poised to remain a leader in the tile industry for many years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tile Shop. More…
| Total Revenues | Net Income | Net Margin |
| 385.2 | 12.87 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tile Shop. More…
| Operations | Investing | Financing |
| 34.93 | -14.74 | -16.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tile Shop. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 325.44 | 208.85 | 2.62 |
Key Ratios Snapshot
Some of the financial key ratios for Tile Shop are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.7% | 4.4% | 5.2% |
| FCF Margin | ROE | ROA |
| 5.2% | 10.9% | 3.8% |
Analysis – Tile Shop Intrinsic Value Calculation
At GoodWhale, we conducted an analysis on TILE SHOP‘s financials. Our proprietary Valuation Line calculated the fair value of TILE SHOP share to be around $6.2. Currently, TILE SHOP stock is traded at $5.8, which is a fair price undervalued by 6.5%. This presents a great opportunity for investors to purchase TILE SHOP stock at a discounted rate with potential upside gains once the stock reaches its fair value in the future. More…
Peers
In recent years, the competitive landscape for home improvement retailers has become increasingly competitive. Tile Shop Holdings Inc, a leading player in the industry, faces stiff competition from a number of well-established competitors, including Mr Bricolage, Joyful Honda Co Ltd, and Sekichu Co Ltd. While each company has its own unique strengths and weaknesses, all are formidable competitors that Tile Shop Holdings Inc must contend with in order to maintain its market share.
– Mr Bricolage ($LTS:0NQ3)
Mr Bricolage is a French company that specializes in home improvement and gardening products. It has a market capitalization of 83.69 million euros as of 2022 and a return on equity of 23.21%. The company operates more than 400 stores in France and other European countries. It offers a wide range of products, including paint, hardware, electrical goods, and gardening tools. Mr Bricolage is a leading player in the French home improvement market and is well-positioned to benefit from the continued growth of the sector.
– Joyful Honda Co Ltd ($TSE:3191)
Joyful Honda Co Ltd is a Japanese multinational corporation primarily known for manufacturing automobiles and motorcycles. The company has a market cap of 122.03B as of 2022 and a Return on Equity of 7.64%. Joyful Honda was founded in 1948 and has since grown to become one of the largest automakers in the world. The company offers a wide range of vehicles, from small cars to SUVs and trucks, and has a strong presence in both the Japanese and global markets. Joyful Honda is a financially sound company with a strong track record of profitability.
– Sekichu Co Ltd ($TSE:9976)
Sekichu Co Ltd is a Japanese company that manufactures and sells construction materials. It has a market cap of 7.02B as of 2022 and a return on equity of 3.53%. The company’s products include cement, concrete, asphalt, and other construction materials. It also provides services such as construction management and engineering.
Summary
TILE SHOP released its second quarter FY2023 earnings results on August 3, 2023 which reported total revenue of USD 98.6 million, 8.4% lower than the same period last year. Net income was reported at USD 5.1 million, a decrease of 26.5%. As a result, the stock price moved down the same day. Investing analysts suggest that investors should be cautious when considering TILE SHOP’s stock due to the company’s declining revenues and net income.
However, they also point out that long-term investment opportunities may still be available depending on future performance. In any case, investors should keep an eye on TILE SHOP’s stock and continue to monitor its financials for further developments.
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