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REALREAL INC/THE (REAL) Stock Fundamental Analysis

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

6.1  +0.33 (+5.72%)

After market: 6.08 -0.02 (-0.33%)

Fundamental Rating

2

REAL gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. REAL has a bad profitability rating. Also its financial health evaluation is rather negative. REAL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year REAL has reported negative net income.
In the past year REAL had a positive cash flow from operations.
In the past 5 years REAL always reported negative net income.
In the past 5 years REAL reported 4 times negative operating cash flow.
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 (-31.72%) than 89.26% of its industry peers.
Industry RankSector Rank
ROA -31.72%
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

Looking at the Gross Margin, with a value of 74.53%, REAL belongs to the top of the industry, outperforming 96.69% of the companies in the same industry.
In the last couple of years the Gross Margin of REAL has grown nicely.
The Profit Margin and Operating Margin are not available for REAL so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.53%
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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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.
The number of shares outstanding for REAL has been increased compared to 5 years ago.
REAL has a worse debt/assets ratio than last year.
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

Based on the Altman-Z score of -2.75, we must say that REAL is in the distress zone and has some risk of bankruptcy.
REAL has a Altman-Z score of -2.75. This is amonst the worse of the industry: REAL underperforms 85.12% of its industry peers.
REAL has a debt to FCF ratio of 548.78. This is a negative value and a sign of low solvency as REAL would need 548.78 years to pay back of all of its debts.
REAL's Debt to FCF ratio of 548.78 is on the low side compared to the rest of the industry. REAL is outperformed by 61.98% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 548.78
Altman-Z -2.75
ROIC/WACCN/A
WACC7.85%
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 0.94 indicates that REAL may have some problems paying its short term obligations.
With a Current ratio value of 0.94, REAL is not doing good in the industry: 76.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that REAL may have some problems paying its short term obligations.
REAL has a Quick ratio of 0.84. This is in the better half of the industry: REAL outperforms 68.59% of its industry peers.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.84
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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3. Growth

3.1 Past

REAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.23%, which is quite impressive.
Looking at the last year, REAL shows a quite strong growth in Revenue. The Revenue has grown by 9.30% in the last year.
REAL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.67% yearly.
EPS 1Y (TTM)60.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%85.71%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y8.69%
Revenue growth 5Y13.67%
Sales Q2Q%14.38%

3.2 Future

Based on estimates for the next years, REAL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.55% on average per year.
REAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.89% yearly.
EPS Next Y30.79%
EPS Next 2Y31.82%
EPS Next 3Y19.55%
EPS Next 5YN/A
Revenue Next Year9.19%
Revenue Next 2Y9.27%
Revenue Next 3Y10.5%
Revenue Next 5Y11.89%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 -0.5 -1 -1.5

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4. Valuation

4.1 Price/Earnings Ratio

REAL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for REAL. No positive earnings are expected for the next year.
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

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of REAL indicates a slightly more expensive valuation: REAL is more expensive than 61.16% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 850.41
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

A more expensive valuation may be justified as REAL's earnings are expected to grow with 19.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.82%
EPS Next 3Y19.55%

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5. Dividend

5.1 Amount

REAL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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REALREAL INC/THE

NASDAQ:REAL (4/24/2025, 8:00:02 PM)

After market: 6.08 -0.02 (-0.33%)

6.1

+0.33 (+5.72%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners78.24%
Inst Owner Change-5.3%
Ins Owners14.6%
Ins Owner Change3.34%
Market Cap678.63M
Analysts78.33
Price Target11.02 (80.66%)
Short Float %17.82%
Short Ratio4.82
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)1
Avg EPS beat(2)22.35%
Min EPS beat(2)-0.84%
Max EPS beat(2)45.53%
EPS beat(4)3
Avg EPS beat(4)22.58%
Min EPS beat(4)-0.84%
Max EPS beat(4)45.53%
EPS beat(8)7
Avg EPS beat(8)25.82%
EPS beat(12)11
Avg EPS beat(12)21.78%
EPS beat(16)13
Avg EPS beat(16)16.2%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)2%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)8
Avg Revenue beat(16)0.04%
PT rev (1m)-1.82%
PT rev (3m)18.68%
EPS NQ rev (1m)-13.33%
EPS NQ rev (3m)17.07%
EPS NY rev (1m)-3.26%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.55%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.13
P/FCF 850.41
P/OCF 25.28
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.35
EYN/A
EPS(NY)-0.24
Fwd EYN/A
FCF(TTM)0.01
FCFY0.12%
OCF(TTM)0.24
OCFY3.96%
SpS5.4
BVpS-3.66
TBVpS-3.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -31.72%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.53%
FCFM 0.13%
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 Turnover1.42
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 548.78
Debt/EBITDA N/A
Cap/Depr 78.69%
Cap/Sales 4.34%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.94
Quick Ratio 0.84
Altman-Z -2.75
F-Score6
WACC7.85%
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)60.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%85.71%
EPS Next Y30.79%
EPS Next 2Y31.82%
EPS Next 3Y19.55%
EPS Next 5YN/A
Revenue 1Y (TTM)9.3%
Revenue growth 3Y8.69%
Revenue growth 5Y13.67%
Sales Q2Q%14.38%
Revenue Next Year9.19%
Revenue Next 2Y9.27%
Revenue Next 3Y10.5%
Revenue Next 5Y11.89%
EBIT growth 1Y53.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year154.82%
EBIT Next 3Y47.76%
EBIT Next 5Y32.95%
FCF growth 1Y100.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y143.82%
OCF growth 3YN/A
OCF growth 5YN/A