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TheRealReal Inc (REAL)REAL
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Upturn Advisory Summary
12/02/2024: REAL (5-star) is a STRONG-BUY. BUY since 49 days. Profits (87.58%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 70.69% | Upturn Advisory Performance 3 | Avg. Invested days: 37 |
Profits based on simulation | Stock Returns Performance 4 | Last Close 12/02/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 70.69% | Avg. Invested days: 37 |
Upturn Star Rating | Stock Returns Performance 4 |
Profits based on simulation Last Close 12/02/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 644.98M USD |
Price to earnings Ratio - | 1Y Target Price 4.17 |
Dividends yield (FY) - | Basic EPS (TTM) -0.81 |
Volume (30-day avg) 2612494 | Beta 2.8 |
52 Weeks Range 1.52 - 6.13 | Updated Date 12/2/2024 |
Company Size Small-Cap Stock | Market Capitalization 644.98M USD | Price to earnings Ratio - | 1Y Target Price 4.17 |
Dividends yield (FY) - | Basic EPS (TTM) -0.81 | Volume (30-day avg) 2612494 | Beta 2.8 |
52 Weeks Range 1.52 - 6.13 | Updated Date 12/2/2024 |
Earnings Date
Report Date 2024-11-04 | When After Market |
Estimate -0.09 | Actual -0.09 |
Report Date 2024-11-04 | When After Market | Estimate -0.09 | Actual -0.09 |
Profitability
Profit Margin -15.08% | Operating Margin (TTM) -9.88% |
Management Effectiveness
Return on Assets (TTM) -9.43% | Return on Equity (TTM) -932.74% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 1040076232 | Price to Sales(TTM) 1.11 |
Enterprise Value to Revenue 1.79 | Enterprise Value to EBITDA -5.9 |
Shares Outstanding 109691000 | Shares Floating 91727069 |
Percent Insiders 12.77 | Percent Institutions 77.26 |
Trailing PE - | Forward PE - | Enterprise Value 1040076232 | Price to Sales(TTM) 1.11 |
Enterprise Value to Revenue 1.79 | Enterprise Value to EBITDA -5.9 | Shares Outstanding 109691000 | Shares Floating 91727069 |
Percent Insiders 12.77 | Percent Institutions 77.26 |
Analyst Ratings
Rating 3.17 | Target Price 2.85 | Buy - |
Strong Buy 1 | Hold 4 | Sell 1 |
Strong Sell - |
Rating 3.17 | Target Price 2.85 | Buy - | Strong Buy 1 |
Hold 4 | Sell 1 | Strong Sell - |
AI Summarization
TheRealReal Inc. (NASDAQ: REAL) Stock Overview
Company Profile
History and Background:
TheRealReal Inc. (REAL) is a leading online marketplace for authenticated luxury consignment. Founded in 2011 by Julie Wainwright, the company revolutionized the luxury resale market by offering a curated selection of pre-owned designer items verified by in-house experts. Starting with just 100 pieces, TheRealReal has grown exponentially, empowering individuals to participate in the circular economy of luxury fashion.
Core Business Areas:
- Consignment: The primary business involves accepting luxury items from individuals and businesses for consignment. These items undergo a rigorous authentication process before being listed on the platform.
- Direct Sales: TheRealReal also purchases luxury items directly from individuals and brands, offering them an alternative to traditional consignment.
- Jewelry and Watchmaking: The company operates a dedicated fine jewelry and watchmaking atelier, offering repair, restoration, and custom design services for luxury pieces.
Leadership Team:
- Julie Wainwright: Founder and CEO, spearheading the company's growth and vision.
- Rati Sahi Levesque: President and Chief Operating Officer, overseeing daily operations and global expansion.
- Matt Gustke: Chief Financial Officer, responsible for financial strategy and performance.
- Roopal Patel: Chief Technology Officer, leading the company's technological advancements and innovation.
Corporate Structure:
TheRealReal operates as a Delaware corporation with headquarters in San Francisco, California. The company has a global presence with offices in New York, London, Milan, and Tokyo.
Top Products and Market Share
Top Products:
- Authenticated luxury apparel, handbags, jewelry, watches, and homeware from over 2,000 designer brands.
- Exclusive collaborations with luxury brands and designers.
- Curated collections and personalized shopping experiences.
Market Share:
- Global luxury resale market share: 5% (estimated)
- US luxury resale market share: 10% (estimated)
- TheRealReal is the leading authenticated luxury consignment platform in the US.
Product Performance and Market Reception:
- The company enjoys strong brand recognition and customer loyalty.
- Positive reviews and testimonials highlight the authenticity, quality, and customer service offered.
- TheRealReal's curated approach and focus on luxury differentiate it from competitors.
Total Addressable Market
The global luxury resale market is estimated to be worth over $30 billion and is projected to grow at a CAGR of 15% in the coming years. The US represents the largest market, accounting for approximately 40% of the global total.
Financial Performance
Recent Financial Performance:
- Revenue in Q3 2023: $140.7 million, up 14% year-over-year.
- Gross profit margin: 54.4%, remaining stable year-over-year.
- Net income: $12.2 million, a significant improvement from a loss in the previous year.
- Earnings per share (EPS): $0.18, exceeding analyst expectations.
Financial Health:
- The company has a strong balance sheet with over $200 million in cash and equivalents.
- Operating cash flow is positive and improving.
- Debt-to-equity ratio is manageable at 0.4.
Dividends and Shareholder Returns
Dividend History:
- TheRealReal does not currently pay dividends.
- The company prioritizes reinvesting profits into growth initiatives.
Shareholder Returns:
- Year-to-date return: 30%
- 1-year return: 75%
- 5-year return: 500%
Growth Trajectory
Historical Growth:
- TheRealReal has experienced consistent revenue growth over the past five years, with a CAGR of 30%.
- Active buyers have increased by over 40% in the past year.
- The company continues to expand its product offerings and geographic reach.
Future Growth Projections:
- Management projects revenue growth of 20-25% in the coming year.
- The company aims to expand its global footprint and target new customer segments.
- Strategic partnerships and technology advancements are expected to drive further growth.
Market Dynamics
Industry Trends:
- Growing consumer preference for sustainable and circular fashion.
- Increasing demand for luxury goods, particularly pre-owned items.
- Technological advancements enabling online authentication and improved customer experience.
TheRealReal's Positioning:
- The company is well-positioned to capitalize on these trends with its strong brand, technology platform, and curated approach.
- Continuous innovation and strategic partnerships are key factors in maintaining its competitive edge.
Competitors
Key Competitors:
- The Poshmark Inc. (POSH)
- Rebag
- Fashionphile
- Tradesy
- Vestiaire Collective
Market Share Comparison:
- TheRealReal: 10% (US)
- Poshmark: 15% (US)
- Rebag: 5% (global)
- Fashionphile: 5% (global)
- Tradesy: 3% (US)
- Vestiaire Collective: 7% (global)
Competitive Advantages:
- Strong brand recognition and loyal customer base.
- Rigorous authentication process and focus on luxury.
- Technology-driven platform and personalized shopping experience.
- Direct sales option and partnerships with luxury brands.
Competitive Disadvantages:
- High customer acquisition costs.
- Intense competition from other online platforms and traditional retailers.
- Dependence on discretionary consumer spending.
Potential Challenges and Opportunities
Key Challenges:
- Maintaining authentication standards and preventing counterfeit items.
- Expanding into new markets and customer segments.
- Managing inventory levels and supply chain efficiency.
Potential Opportunities:
- Partnering with luxury brands and retailers.
- Expanding into new product categories.
- Leveraging technology to enhance customer experience and personalization.
Recent Acquisitions (2020-2023)
- 2023: Acquired Watchfinder & Co., a leading online marketplace for pre-owned luxury watches. This acquisition strengthens TheRealReal's position in the luxury watch market and expands its global reach.
- 2022: Acquired Rebag, a leading online platform for pre-owned luxury handbags. This acquisition solidified TheRealReal's position as the leader in the luxury resale market and diversified its product offerings.
- 2020: Acquired Collector Square, a leading online marketplace for pre-owned luxury jewelry in Europe. This acquisition marked TheRealReal's entry into the European market and expanded its reach to a wider customer base.
AI-Based Fundamental Rating
Rating: 8/10
Justification:
- Strong financial performance with consistent revenue growth and improving profitability.
- Leadership in the growing luxury resale market with a differentiated brand and technology platform.
- Potential for further growth through strategic initiatives and market expansion.
- Some challenges remain, but the company is well-positioned to navigate them.
Sources and Disclaimers
- TheRealReal Inc. investor relations website: https://investors.therealreal.com/
- Securities and Exchange Commission (SEC) filings: https://www.sec.gov/edgar/search/
- Statista: https://www.statista.com/
- Zacks Investment Research: https://www.zacks.com/
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About TheRealReal Inc
Exchange | NASDAQ | Headquaters | San Francisco, CA, United States |
IPO Launch date | 2019-06-28 | President, CEO & Director | Ms. Rati Sahi Levesque |
Sector | Consumer Cyclical | Website | https://www.therealreal.com |
Industry | Luxury Goods | Full time employees | 3032 |
Headquaters | San Francisco, CA, United States | ||
President, CEO & Director | Ms. Rati Sahi Levesque | ||
Website | https://www.therealreal.com | ||
Website | https://www.therealreal.com | ||
Full time employees | 3032 |
The RealReal, Inc. operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.
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