Tile Shop (TTSH) AI Stock Analysis

• Market Cap: $136.19M
• Dividend Yield: N/A
• Average Volume (3M): 130.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -3.77%
• EPS Growth: -146.47%
• Country: US
• Employees: 1,291
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): -0.08
• Shares Outstanding: 39,821,740
• 10 Day Avg. Volume: 127,388
• 30 Day Avg. Volume: 130,100
• PEG Ratio: 0.12
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 15.07
• 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: 40 Underperform
• Price Target: $3.00 ▼(-25.00% Downside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is driven primarily by weak financial performance (sharp revenue decline, losses, and a collapse in reported cash generation) alongside elevated leverage. Technicals add pressure as the stock is in a downtrend with negative momentum, while valuation is constrained by negative earnings and no provided dividend support.

Positive Factors

High Gross Margin

A sustained gross margin near 64% indicates strong product mix and pricing power in a specialty retail niche. That margin cushion helps absorb SG&A and commodity cost swings, supporting recovery potential and protecting unit economics over the next several months.

EBITDA Resilience

Maintaining an EBITDA margin around 6% despite revenue pressure shows some underlying operating leverage and cost control. This provides a platform to restore profitability if sales stabilize and limits the speed at which losses widen, aiding medium-term operational recovery.

Cost Savings from Deregistration

The approved reverse/forward split and move to delist to save ~$2.4M annually is a structural cost reduction that lowers recurring public-company expenses. That improves cash runway and reduces overhead, enhancing flexibility to invest in core operations or reduce leverage.

Negative Factors

Sharp Revenue Decline

A ~58% TTM revenue decline is a durable concern: it erodes scale economics, weakens supplier leverage, and undermines fixed-cost absorption. Sustained top-line contraction materially raises the bar for restoring profitability and limits near-term organic recovery options.

Collapsed Cash Generation

Operating cash flow and free cash flow falling to zero eliminates internal funding for inventory, capex, and working capital. This persistent cash-generation weakness increases external financing needs, restricts discretionary investment, and heightens short-to-medium-term solvency risk.

Elevated Leverage

Leverage above 1.5x with declining equity constrains strategic flexibility and raises refinancing and interest-rate exposure. Even with modest debt reduction versus 2024, negative ROE and a weakened capital base increase financial risk and limit capacity to fund a protracted turnaround.

Tile Shop Business Overview & Revenue Model

Company Description

Tile Shop Holdings, Inc. operates as a specialty retailer of man-made and natural stone tiles, setting and maintenance materials, and related accessories in the United States. The company offers natural stone products, including marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products comprises ceramic, porcelain, glass, cement, wood look, and metal and luxury vinyl tile. It also provides setting and maintenance materials, such as thinset, grout, and sealers, as well as work with other suppliers to manufacture private label products; and accessories, which includes installation tools, shower and bath shelves, drains, and related products. In addition, the company offers customers delivery service through third-party freight providers. It sells its products under the Superior Adhesives & Chemicals, Superior Tools & Supplies, Rush River, and Fired Earth brands. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.

How the Company Makes Money

Tile Shop generates revenue primarily through the sale of tiles, natural stones, and associated installation products. The company earns income by operating retail stores and through its online platform, catering to both DIY customers and professional contractors. Key revenue streams include direct product sales, design consultations, and installation services. Additionally, TTSH may engage in partnerships with manufacturers and suppliers to enhance product offerings and promotional events, which can contribute to increased sales. The company also benefits from seasonal trends in home improvement and renovation activities, which drive customer demand.

Tile Shop Financial Statement Overview

Summary

Overall fundamentals are weak: TTM revenue fell sharply (-58.1%) with a swing to net losses and negative operating profit, while cash generation deteriorated to 0 operating cash flow/free cash flow. Leverage is elevated (debt-to-equity ~1.55) and equity declined, limiting flexibility; the main offset is a still-strong gross margin (~63.8%).

Income Statement

TTM (Trailing-Twelve-Months) profitability weakened materially: revenue fell sharply (-58.1%) and the company moved to a net loss (-1.3% net margin) and negative operating profit, despite maintaining a solid gross margin (~63.8%). EBITDA margin held near ~6.1%, but the multi-year trend shows meaningful margin compression from 2021–2022 levels and a clear step-down from 2023 to 2024, culminating in losses in TTM.

Balance Sheet

Leverage is elevated with debt exceeding equity (debt-to-equity ~1.55 in TTM), and equity has declined versus 2024, reducing balance-sheet flexibility. Total debt is slightly lower than 2024, which is a modest positive, but negative return on equity in TTM highlights that the current earnings profile is not supporting the capital structure well.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is very weak, with operating cash flow and free cash flow reported at 0 and free cash flow down 100% versus the prior period. This is a sharp deterioration from 2023–2024 when the company produced positive operating cash flow and free cash flow, and it raises near-term concerns around funding needs and financial flexibility if the weak earnings environment persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	336.82M	347.07M	377.15M	394.70M	370.70M
Gross Profit	215.02M	227.87M	243.06M	258.94M	253.13M
EBITDA	-5.81M	21.28M	37.39M	47.75M	47.99M
Net Income	-4.49M	2.32M	10.07M	15.70M	14.77M
Balance Sheet
Total Assets	301.73M	319.60M	316.67M	345.82M	340.76M
Cash, Cash Equivalents and Short-Term Investments	10.12M	20.96M	8.62M	5.95M	9.36M
Total Debt	134.84M	142.58M	139.96M	176.62M	143.45M
Total Liabilities	214.49M	196.69M	196.99M	237.05M	218.53M
Stockholders Equity	87.24M	122.91M	119.69M	108.77M	122.22M
Cash Flow
Free Cash Flow	0.00	12.57M	46.75M	-11.31M	28.62M
Operating Cash Flow	0.00	27.11M	62.06M	2.71M	39.69M
Investing Cash Flow	0.00	-14.34M	-15.26M	-14.03M	-11.07M
Financing Cash Flow	0.00	-503.00K	-45.93M	9.11M	-28.90M

Tile Shop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTSH, the sentiment is Negative. The current price of 4 is above the 20-day moving average (MA) of 3.45, above the 50-day MA of 3.59, and below the 200-day MA of 5.64, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 13.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTSH.

Tile Shop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEYS	74 Outperform	$310.13M	12.56	9.57%	9.66%	-3.64%	-16.12%
LOW	68 Neutral	$145.07B	22.44	―	1.94%	0.64%	0.58%
HD	65 Neutral	$365.27B	26.52	145.54%	2.67%	7.50%	-0.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FND	59 Neutral	$6.92B	43.30	9.11%	―	6.04%	10.26%
PACK	53 Neutral	$425.25M	―	-6.68%	―	9.54%	-81.46%
TTSH	40 Underperform	$136.19M	-34.23	-1.37%	―	-3.77%	-146.47%

Tile Shop Corporate Events

Tile Shop Executes Significant Reverse Stock Split Transaction

On December 15, 2025, Tile Shop Holdings, Inc. executed a 1-for-3,000 reverse stock split of its common stock, under which shareholders holding fewer than 3,000 shares were cashed out at $6.60 per share. The move, which will result in an aggregate cash payment of about $32 million to these small shareholders, effectively reduces the number of individual stockholders on the register and may streamline the company’s shareholder base and administrative burden, with implications for its capital structure and ownership profile.

The most recent analyst rating on (TTSH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Tile Shop stock, see the TTSH Stock Forecast page.

Tile Shop Announces Reverse and Forward Stock Split

On December 3, 2025, Tile Shop‘s stockholders approved a 1-for-3,000 reverse stock split followed by a 3,000-for-1 forward stock split, effective December 15, 2025. This move is part of the company’s strategy to delist from Nasdaq and deregister its common stock to save costs and focus on long-term growth, anticipating annual savings of over $2.4 million.

The most recent analyst rating on (TTSH) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Tile Shop stock, see the TTSH Stock Forecast page.

Tile Shop Announces Reverse and Forward Stock Split

On December 3, 2025, Tile Shop Holdings, Inc. announced the approval of a reverse stock split at a ratio of 1-for-3,000, followed by a forward stock split of 3,000-for-1, as part of a strategic move to delist from Nasdaq and deregister its common stock. This decision aims to reduce the costs associated with being a public company, potentially saving over $2.4 million annually, and allowing the company to focus on long-term growth initiatives and increasing stockholder value.

The most recent analyst rating on (TTSH) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Tile Shop stock, see the TTSH Stock Forecast page.