Therealreal Stock Analysis
| REAL Stock | USD 16.09 0.21 1.32% |
TheRealReal has over 546.55 Million in debt which may indicate that it relies heavily on debt financing. TheRealReal's financial risk is the risk to TheRealReal stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
TheRealReal's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. TheRealReal's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps TheRealReal Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect TheRealReal's stakeholders.
For most companies, including TheRealReal, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for TheRealReal, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, TheRealReal's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that TheRealReal's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which TheRealReal is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of TheRealReal to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, TheRealReal is said to be less leveraged. If creditors hold a majority of TheRealReal's assets, the Company is said to be highly leveraged.
TheRealReal is overvalued with Real Value of 14.97 and Hype Value of 16.09. The main objective of TheRealReal stock analysis is to determine its intrinsic value, which is an estimate of what TheRealReal is worth, separate from its market price. There are two main types of TheRealReal's stock analysis: fundamental analysis and technical analysis.
The TheRealReal stock is traded in the USA on NASDAQ Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA.
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TheRealReal Stock Analysis Notes
About 88.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 1.01. TheRealReal had not issued any dividends in recent years. The entity had 2:1 split on the October 7, 1997. The RealReal, Inc. operates an online marketplace for consigned luxury goods in the United State. The company was incorporated in 2011 and is headquartered in San Francisco, California. Realreal operates under Luxury Goods classification in the United States and is traded on NASDAQ Exchange. It employs 3355 people. To find out more about TheRealReal contact John Koryl at 855 435 5893 or learn more at https://www.therealreal.com.TheRealReal Investment Alerts
| TheRealReal is way too risky over 90 days horizon | |
| TheRealReal appears to be risky and price may revert if volatility continues | |
| TheRealReal has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 600.48 M. Net Loss for the year was (134.2 M) with profit before overhead, payroll, taxes, and interest of 493.68 M. | |
| Over 88.0% of the company shares are owned by institutional investors |
TheRealReal Market Capitalization
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.85 B.TheRealReal Profitablity
The company has Profit Margin (PM) of (0.11) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.04) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.04.Technical Drivers
As of the 27th of January, TheRealReal has the Coefficient Of Variation of 980.24, risk adjusted performance of 0.0838, and Semi Deviation of 2.42. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TheRealReal, as well as the relationship between them. Please validate TheRealReal variance, as well as the relationship between the maximum drawdown and semi variance to decide if TheRealReal is priced more or less accurately, providing market reflects its prevalent price of 16.09 per share. Given that TheRealReal has jensen alpha of 0.3761, we advise you to double-check TheRealReal's current market performance to make sure the company can sustain itself at a future point.TheRealReal Price Movement Analysis
The output start index for this execution was twenty-three with a total number of output elements of thirty-eight. The Moving Average is predictive technique used to analyze TheRealReal price data points by creating a series of averages of different subsets of TheRealReal entire price series.
TheRealReal Insider Trading Activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific TheRealReal insiders, such as employees or executives, is commonly permitted as long as it does not rely on TheRealReal's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases TheRealReal insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
TheRealReal Outstanding Bonds
TheRealReal issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. TheRealReal uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most TheRealReal bonds can be classified according to their maturity, which is the date when TheRealReal has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
TheRealReal Predictive Daily Indicators
TheRealReal intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of TheRealReal stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
TheRealReal Forecast Models
TheRealReal's time-series forecasting models are one of many TheRealReal's stock analysis techniques aimed at predicting future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary TheRealReal's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.TheRealReal Debt to Cash Allocation
Many companies such as TheRealReal, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
TheRealReal currently holds 546.55 M in liabilities with Debt to Equity (D/E) ratio of 6.97, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. TheRealReal has a current ratio of 2.37, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about TheRealReal's use of debt, we should always consider it together with its cash and equity.TheRealReal Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the TheRealReal's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of TheRealReal, which in turn will lower the firm's financial flexibility.TheRealReal Corporate Bonds Issued
About TheRealReal Stock Analysis
Stock analysis is the technique used by a trader or investor to examine and evaluate how TheRealReal prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling TheRealReal shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Stock such as TheRealReal. By using and applying TheRealReal Stock analysis, traders can create a robust methodology for identifying TheRealReal entry and exit points for their positions.
The RealReal, Inc. operates an online marketplace for consigned luxury goods in the United State. The company was incorporated in 2011 and is headquartered in San Francisco, California. Realreal operates under Luxury Goods classification in the United States and is traded on NASDAQ Exchange. It employs 3355 people.
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Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in TheRealReal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For more information on how to buy TheRealReal Stock please use our How to buy in TheRealReal Stock guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TheRealReal. If investors know TheRealReal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TheRealReal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of TheRealReal is measured differently than its book value, which is the value of TheRealReal that is recorded on the company's balance sheet. Investors also form their own opinion of TheRealReal's value that differs from its market value or its book value, called intrinsic value, which is TheRealReal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TheRealReal's market value can be influenced by many factors that don't directly affect TheRealReal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TheRealReal's value and its price as these two are different measures arrived at by different means. Investors typically determine if TheRealReal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TheRealReal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.