Retailors (RTLS) AI Stock Analysis

• Market Cap: 2.21B
• Dividend Yield: 5.1%
• Average Volume (3M): 89.81K
• Price to Earnings (P/E): 38.2
• Beta (1Y): 1.42
• Revenue Growth: 13.95%
• EPS Growth: -45.91%
• Country: IL
• Employees: 5,955
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Retail
• EPS (TTM): N/A
• Shares Outstanding: 48,614,210
• 10 Day Avg. Volume: 54,592
• 30 Day Avg. Volume: 89,811
• PEG Ratio: -2.27
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 14.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 5,196.00 ▼(-23.42% Downside)

Retailors' overall stock score reflects a stable financial position with steady revenue growth and healthy operational margins. However, the high debt levels and declining profitability metrics are significant concerns. The technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. The valuation is high, but the dividend yield offers some compensation. Investors should be cautious due to the current market momentum and high leverage.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Operational Efficiency

Efficient operations, as indicated by healthy margins, suggest strong cost management and competitive positioning in the market.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic flexibility, potentially impacting long-term financial health.

Declining Profitability

Decreasing profitability margins indicate pressure on earnings, which could affect future investment and growth capabilities.

Cash Flow Conversion

Low cash flow conversion from earnings may signal inefficiencies in operations, affecting liquidity and investment capacity.

Retailors Business Overview & Revenue Model

Company Description

Retailors (RTLS) is a leading provider of advanced retail technology solutions, specializing in real-time location services and inventory management systems. The company operates primarily in the retail sector, offering products that enhance operational efficiency, improve customer experiences, and optimize supply chain management. Core offerings include RFID tracking systems, inventory analytics software, and integrated mobile applications designed to streamline retail operations.

How the Company Makes Money

Retailors generates revenue through a multi-faceted business model that includes direct sales of its hardware and software products, subscription-based services for ongoing software support and updates, and consulting services for retail strategy optimization. Key revenue streams include the sale of RFID tags and readers, licensing fees for software platforms, and recurring revenue from maintenance and support contracts. Additionally, Retailors has established partnerships with major retail chains and technology providers, which not only enhance its market presence but also contribute to increased sales through collaborative product offerings and joint marketing initiatives.

Retailors Financial Statement Overview

Summary

Retailors faces challenges in revenue growth and cash flow generation, with high leverage posing potential risks. While the company maintains operational efficiency with stable margins, the declining profitability and cash flow metrics highlight areas for improvement. The balance sheet's high debt levels could impact financial flexibility, necessitating careful management to sustain growth and profitability.

Income Statement

Retailors has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy gross profit margin of approximately 51%, indicating efficient cost management. The net profit margin has decreased to 3.69% in the TTM, reflecting challenges in maintaining profitability. Despite these challenges, the EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.88 in the TTM, indicating significant leverage, which could pose financial risks. The return on equity has decreased to 8.96%, showing reduced profitability from shareholders' investments. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the asset structure, which could impact financial stability.

Cash Flow

The cash flow statement highlights a significant decline in free cash flow growth, down by 69.45% in the TTM, which is a major concern. The operating cash flow to net income ratio is 0.37, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.39, suggesting that the company is generating less free cash flow relative to its net income, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.54B	2.41B	1.93B	1.53B	1.12B	637.66M
Gross Profit	1.31B	1.24B	984.44M	799.90M	574.07M	313.15M
EBITDA	512.62M	518.61M	430.36M	315.92M	245.39M	71.58M
Net Income	57.63M	112.33M	130.23M	102.31M	72.86M	-28.97M
Balance Sheet
Total Assets	3.62B	3.06B	2.81B	2.45B	2.05B	1.10B
Cash, Cash Equivalents and Short-Term Investments	449.63M	498.93M	739.46M	704.90M	763.79M	90.03M
Total Debt	2.09B	1.55B	1.40B	1.02B	787.88M	705.07M
Total Liabilities	2.72B	2.11B	1.87B	1.48B	1.14B	1.03B
Stockholders Equity	880.17M	930.52M	940.93M	966.69M	881.61M	47.08M
Cash Flow
Free Cash Flow	95.58M	245.90M	174.89M	152.91M	228.84M	29.07M
Operating Cash Flow	265.32M	422.07M	318.21M	243.08M	278.48M	90.21M
Investing Cash Flow	-102.86M	-226.79M	-62.68M	-218.37M	-358.40M	-105.13M
Financing Cash Flow	-106.19M	-306.59M	-174.76M	-178.77M	458.13M	48.36M

Retailors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6785.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RTLS, the sentiment is Negative. The current price of 6785 is above the 20-day moving average (MA) of 5079.40, above the 50-day MA of 5717.26, and above the 200-day MA of 6680.28, indicating a bearish trend. The MACD of -278.10 indicates Positive momentum. The RSI at 30.55 is Neutral, neither overbought nor oversold. The STOCH value of 13.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:RTLS.

Retailors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DELG	76 Outperform	4.71B	15.30	10.63%	2.47%	2.95%	-14.16%
ECP	66 Neutral	2.66B	31.68	―	3.01%	3.83%	―
CAST	66 Neutral	1.18B	11.03	―	22.30%	9.88%	-2.72%
HLMS	59 Neutral	688.25M	20.62	―	5.30%	7.70%	-34.56%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
RTLS	56 Neutral	2.21B	38.23	―	5.10%	13.95%	-45.91%