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Tile Shop Hldgs (TTSH)
:TTSH
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Tile Shop
(NASDAQ:TTSH)
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Rating:48Neutral
Price Target:
$6.00
▼(-3.69% Downside)
Tile Shop's overall stock score reflects significant financial challenges, including declining revenue and profitability pressures, high leverage, and cash flow constraints. Technical indicators suggest a bearish trend, while valuation is negatively impacted by a lack of earnings and dividends. The earnings call provided some positive insights into cost management and product expansion, but these were outweighed by broader market challenges.
Tile Shop (TTSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$278.86M
Dividend YieldN/A
Average Volume (3M)131.64K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-5.41%
EPS Growth-100.49%
CountryUS
Employees1,291
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)<0.01
Shares Outstanding44,761,436
10 Day Avg. Volume320,864
30 Day Avg. Volume131,638
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit1.77
Enterprise Value/Ebitda23.62
Forecast
1Y Price Target
$6.00Price Target Upside-3.69% Downside
Rating ConsensusHold
Number of Analyst Covering1
Tile Shop Business Overview & Revenue Model
Company DescriptionTile Shop Holdings, Inc. operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. It offers natural stone products, such as marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, including ceramic, porcelain, glass, cement, wood look, and metal tiles primarily under the Rush River and Fired Earth brands. The company also manufactures setting and maintenance materials, such as thinset, grout, and sealers under the Superior brand name; accessories, including installation tools, shower and bath shelves, drains, and related products; and offers customers delivery service through third-party freight providers. As of March 3, 2022, it operated 143 stores in 31 states and the District of Columbia, the United States. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.
How the Company Makes MoneyThe Tile Shop generates revenue primarily through the sale of tiles and related products in its retail locations and online. Key revenue streams include direct sales of tile products, installation materials, and design services. The company also earns income from partnerships with contractors and builders, offering them discounts and incentives to drive sales through their network. Seasonal promotions and marketing campaigns further enhance sales, while customer loyalty programs contribute to repeat business. Additionally, TTSH leverages its online platform to reach a broader customer base, facilitating e-commerce transactions that supplement in-store sales.
Tile Shop Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the company's efforts to expand its product range and manage costs effectively, contributing to a stronger cash position. However, these positives were overshadowed by decreased sales, lower gross margins, and the need for significant cost-cutting measures due to a challenging housing market.Q2-2025 Updates
Positive Updates
Expansion of Product Assortment
The Tile Shop expanded its product offerings with the introduction of the exclusive Arbour line of LVT, as well as new laminate and engineered wood flooring options. Additionally, the signature line with over 250 wall tile and matching trim products was launched.
Increased Operating Cash Flow
The company generated $13.5 million of operating cash flow in the first half of 2025, increasing the cash balance by $6.8 million to $27.8 million by the end of the quarter.
Cost Reduction Measures
The company decreased SG&A expenses by $2.1 million compared to the previous year, primarily through reductions in asset impairment, marketing, and depreciation.
Inventory and Purchasing Strategy
The company has diversified its sourcing strategy across over 20 countries, which helps mitigate risks associated with tariffs and ensures flexibility in supply chain management.
Negative Updates
Decrease in Comparable Store Sales
Comparable store sales decreased by 3.5% due to lower levels of store traffic.
Pressure on Average Ticket Price
Increased use of discounting and sales of lower-end products put pressure on the average ticket price, offsetting volume increases.
Gross Margin Decrease
The gross margin rate decreased by 160 basis points to 64.4% compared to the second quarter of 2024, driven by increased discounting and higher product costs.
Store and Distribution Center Closures
The company closed two distribution centers and two stores, reducing its corporate workforce by about one-third due to the challenging housing market.
Company Guidance
During the Q2 2025 earnings call for Tile Shop Holdings, Inc., the company provided guidance on several key metrics. Comparable store sales decreased by 3.5% due to lower store traffic, while unit volume sales showed modest improvement, driven by an expanded product assortment. However, the increase in discounting and lower average selling prices offset these gains, leading to a decreased gross margin rate of 64.4%, down 160 basis points from the previous year. The SG&A expenses were reduced by $2.1 million to $56.4 million, attributed to factors such as a decrease in asset impairment and marketing expenses, and the closure of the Spring Valley, Wisconsin distribution center. The company generated $13.5 million in operating cash flow in the first half of 2025, raising its cash balance to $27.8 million by the end of the quarter. The company remains focused on reducing expenses, limiting capital spending, and identifying efficiencies in response to a challenging housing market.Tile Shop Financial Statement Overview
Summary
Tile Shop faces challenges with declining revenue and profitability pressures, as evidenced by negative net income and shrinking margins. The high leverage on the balance sheet poses financial risks, while cash flow constraints could limit growth opportunities. The company needs to focus on improving operational efficiency and managing debt levels to enhance financial stability.Income Statement
Tile Shop's income statement shows declining revenue with a negative growth rate of -0.91% TTM, indicating a challenging market environment. The gross profit margin remains relatively strong at 65.29% TTM, but the net profit margin has turned negative, reflecting operational inefficiencies or increased costs. The EBIT and EBITDA margins have also decreased, suggesting pressure on profitability.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.14 TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative, highlighting a lack of profitability. However, the equity ratio is stable, suggesting a balanced asset structure.55
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by -22.16% TTM, which may impact future investments. The operating cash flow to net income ratio is 0.21 TTM, indicating moderate cash generation relative to earnings. The free cash flow to net income ratio is positive, but low, suggesting limited cash available after capital expenditures.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 340.23M | 347.07M | 377.15M | 394.70M | 370.70M | 325.06M |
| Gross Profit | 222.13M | 227.87M | 243.06M | 258.94M | 253.13M | 221.53M |
| EBITDA | 16.64M | 21.28M | 37.39M | 47.75M | 47.99M | 37.71M |
| Net Income | -23.00K | 2.32M | 10.07M | 15.70M | 14.77M | 6.03M |
Balance Sheet | ||||||
| Total Assets | 324.11M | 319.60M | 316.67M | 345.82M | 340.76M | 342.69M |
| Cash, Cash Equivalents and Short-Term Investments | 27.76M | 20.96M | 8.62M | 5.95M | 9.36M | 9.62M |
| Total Debt | 141.72M | 142.58M | 139.96M | 176.62M | 143.45M | 149.90M |
| Total Liabilities | 200.23M | 196.69M | 196.99M | 237.05M | 218.53M | 203.63M |
| Stockholders Equity | 123.88M | 122.91M | 119.69M | 108.77M | 122.22M | 139.06M |
Cash Flow | ||||||
| Free Cash Flow | 2.39M | 12.57M | 46.75M | -11.31M | 28.62M | 63.63M |
| Operating Cash Flow | 17.14M | 27.11M | 62.06M | 2.71M | 39.69M | 65.60M |
| Investing Cash Flow | -14.48M | -14.34M | -15.26M | -14.03M | -11.07M | -1.97M |
| Financing Cash Flow | -324.00K | -503.00K | -45.93M | 9.11M | -28.90M | -63.33M |
Tile Shop Technical Analysis
Negative
6.23
Price Trends
6.23
Negative
6.35
Negative
6.45
Negative
Market Momentum
-0.01
Negative
49.61
Neutral
58.17
Neutral
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 6.23 is above the 20-day moving average (MA) of 6.18, below the 50-day MA of 6.23, and below the 200-day MA of 6.45, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTSH.
Tile Shop Risk Analysis
Tile Shop disclosed 36 risk factors in its most recent earnings report. Tile Shop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tile Shop Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $387.10B | 26.62 | 193.95% | 2.34% | 8.52% | -0.97% | |
65 Neutral | $277.31M | 10.75 | 10.36% | 10.28% | -6.39% | -14.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $135.87B | 20.10 | ― | 1.94% | -0.49% | 0.83% | |
56 Neutral | $7.76B | 36.97 | 9.73% | ― | 4.88% | 0.05% | |
50 Neutral | $463.99M | ― | -6.24% | ― | 10.38% | -123.75% | |
48 Neutral | $278.86M | ― | -0.02% | ― | -5.41% | -100.49% |
* Consumer Cyclical Sector Average
TTSH
Tile Shop
6.21
-0.49
-7.31%
HD
Home Depot
390.90
-1.64
-0.42%
LOW
Lowe's
245.27
-21.78
-8.16%
WEYS
Weyco Group
29.78
-1.35
-4.34%
FND
Floor & Decor Holdings
72.50
-31.68
-30.41%
PACK
Ranpak Holdings
5.25
-0.67
-11.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.