Is TheRealReal Stock a Good Investment?
TheRealReal Investment Advice | REAL |
- Examine TheRealReal's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research TheRealReal's leadership team and their track record. Good management can help TheRealReal navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Specialty Retail space and any emerging trends that could impact TheRealReal's business and its evolving consumer preferences.
- Compare TheRealReal's performance and market position to its competitors. Analyze how TheRealReal is positioned in terms of product offerings, innovation, and market share.
- Check if TheRealReal pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about TheRealReal's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in TheRealReal stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if TheRealReal is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Unstable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine TheRealReal Stock
Researching TheRealReal's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 13.0% of the company outstanding shares are owned by corporate insiders. The company recorded a loss per share of 0.81. TheRealReal had not issued any dividends in recent years. The entity had 2:1 split on the October 7, 1997.
To determine if TheRealReal is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding TheRealReal's research are outlined below:
| TheRealReal appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 549.3 M. Net Loss for the year was (168.47 M) with profit before overhead, payroll, taxes, and interest of 348.69 M. | |
| TheRealReal currently holds about 315.89 M in cash with (61.27 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.31. | |
| Over 77.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: The RealReal Expands to Miamis Design District with New Store Opening |
TheRealReal Quarterly Liabilities And Stockholders Equity |
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TheRealReal uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in TheRealReal. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to TheRealReal's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact TheRealReal's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises TheRealReal's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-02-25 | 2019-12-31 | -0.19 | -0.17 | 0.02 | 10 | ||
2024-05-07 | 2024-03-31 | -0.16 | -0.12 | 0.04 | 25 | ||
2024-02-29 | 2023-12-31 | -0.11 | -0.07 | 0.04 | 36 | ||
2019-11-04 | 2019-09-30 | -0.31 | -0.27 | 0.04 | 12 | ||
2023-08-08 | 2023-06-30 | -0.35 | -0.3 | 0.05 | 14 | ||
2019-08-13 | 2019-06-30 | -0.33 | -0.28 | 0.05 | 15 | ||
2023-02-28 | 2022-12-31 | -0.35 | -0.29 | 0.06 | 17 | ||
2020-08-06 | 2020-06-30 | -0.36 | -0.42 | -0.06 | 16 |
Know TheRealReal's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as TheRealReal is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading TheRealReal backward and forwards among themselves. TheRealReal's institutional investor refers to the entity that pools money to purchase TheRealReal's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Deutsche Bank Ag | 2024-06-30 | 1.9 M | Two Sigma Investments Llc | 2024-09-30 | 1.7 M | Capricorn Fund Managers Ltd | 2024-09-30 | 1.4 M | State Street Corp | 2024-06-30 | 1.4 M | Altium Capital Management, Lp | 2024-09-30 | 1.3 M | Crestwood Capital Management, L.p. | 2024-09-30 | 1.2 M | Norges Bank | 2024-06-30 | 1 M | Scion Asset Management, Llc | 2024-06-30 | 1000 K | Awm Investment Company Inc | 2024-09-30 | 979.1 K | Kanen Wealth Management Llc | 2024-09-30 | 7.3 M | Blackrock Inc | 2024-06-30 | 6.9 M |
TheRealReal's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 631.82 M.Market Cap |
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TheRealReal's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.38) | (0.40) | |
| Return On Capital Employed | (0.64) | (0.68) | |
| Return On Assets | (0.38) | (0.40) | |
| Return On Equity | 0.56 | 0.58 |
Determining TheRealReal's profitability involves analyzing its financial statements and using various financial metrics to determine if TheRealReal is a good buy. For example, gross profit margin measures TheRealReal's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of TheRealReal's profitability and make more informed investment decisions.
Evaluate TheRealReal's management efficiency
TheRealReal has return on total asset (ROA) of (0.0943) % which means that it has lost $0.0943 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (9.3274) %, meaning that it created substantial loss on money invested by shareholders. TheRealReal's management efficiency ratios could be used to measure how well TheRealReal manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is expected to rise to 0.58 this year, although the value of Return On Tangible Assets will most likely fall to (0.40). At this time, TheRealReal's Fixed Asset Turnover is quite stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (2.98) | (2.83) | |
| Tangible Book Value Per Share | (2.98) | (2.83) | |
| Enterprise Value Over EBITDA | (5.56) | (5.84) | |
| Price Book Value Ratio | (0.67) | (0.64) | |
| Enterprise Value Multiple | (5.56) | (5.84) | |
| Price Fair Value | (0.67) | (0.64) | |
| Enterprise Value | 485.1 M | 460.9 M |
Evaluating the management effectiveness of TheRealReal allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The TheRealReal Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 2.799 |
Basic technical analysis of TheRealReal Stock
As of the 30th of November, TheRealReal has the Coefficient Of Variation of 351.38, risk adjusted performance of 0.2259, and Semi Deviation of 2.43. 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 5.88 per share. Given that TheRealReal has jensen alpha of 1.02, we advise you to double-check TheRealReal's current market performance to make sure the company can sustain itself at a future point.TheRealReal's 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's Outstanding Corporate 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.
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Understand TheRealReal's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing TheRealReal's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2259 | |||
| Market Risk Adjusted Performance | 0.5431 | |||
| Mean Deviation | 3.2 | |||
| Semi Deviation | 2.43 | |||
| Downside Deviation | 3.5 | |||
| Coefficient Of Variation | 351.38 | |||
| Standard Deviation | 4.76 | |||
| Variance | 22.7 | |||
| Information Ratio | 0.2557 | |||
| Jensen Alpha | 1.02 | |||
| Total Risk Alpha | 0.5506 | |||
| Sortino Ratio | 0.3477 | |||
| Treynor Ratio | 0.5331 | |||
| Maximum Drawdown | 23.62 | |||
| Value At Risk | (4.09) | |||
| Potential Upside | 9.52 | |||
| Downside Variance | 12.28 | |||
| Semi Variance | 5.92 | |||
| Expected Short fall | (3.98) | |||
| Skewness | 1.52 | |||
| Kurtosis | 4.07 |
| Risk Adjusted Performance | 0.2259 | |||
| Market Risk Adjusted Performance | 0.5431 | |||
| Mean Deviation | 3.2 | |||
| Semi Deviation | 2.43 | |||
| Downside Deviation | 3.5 | |||
| Coefficient Of Variation | 351.38 | |||
| Standard Deviation | 4.76 | |||
| Variance | 22.7 | |||
| Information Ratio | 0.2557 | |||
| Jensen Alpha | 1.02 | |||
| Total Risk Alpha | 0.5506 | |||
| Sortino Ratio | 0.3477 | |||
| Treynor Ratio | 0.5331 | |||
| Maximum Drawdown | 23.62 | |||
| Value At Risk | (4.09) | |||
| Potential Upside | 9.52 | |||
| Downside Variance | 12.28 | |||
| Semi Variance | 5.92 | |||
| Expected Short fall | (3.98) | |||
| Skewness | 1.52 | |||
| Kurtosis | 4.07 |
Consider TheRealReal's intraday 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 Corporate Filings
| 27th of November 2024 Other Reports | ViewVerify | |
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 20th of November 2024 Other Reports | ViewVerify | |
13A | 12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
TheRealReal Stock media impact
Far too much social signal, news, headlines, and media speculation about TheRealReal that are available to investors today. That information is available publicly through TheRealReal media outlets and privately through word of mouth or via TheRealReal internal channels. However, regardless of the origin, that massive amount of TheRealReal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of TheRealReal news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of TheRealReal relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to TheRealReal's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive TheRealReal alpha.
TheRealReal Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards TheRealReal can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
TheRealReal Corporate Management
| Ming Lo | Chief VP | Profile | |
| Ali Zafer | Senior Operations | Profile | |
| Caitlin Howe | Senior Relations | Profile | |
| Luke Friang | Chief Officer | Profile | |
| Ajay Gopal | Chief Officer | Profile | |
| Samantha McCandless | Chief Officer | Profile | |
| Paul Bieber | Head Markets | Profile |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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.
Earnings Share (0.81) | Revenue Per Share 5.456 | Quarterly Revenue Growth 0.11 | Return On Assets (0.09) | Return On Equity (9.33) |
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.
In summary, please note that there is a difference between TheRealReal's value and its price, as these two are different measures arrived at by various 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.