Tile Shop (TTSH) AI Stock Analysis

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Tile Shop

(NASDAQ:TTSH)

Rating:61Neutral

Price Target:

$6.50

▲(4.50%Upside)

Tile Shop's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability, and valuation concerns with a high P/E ratio. However, positive momentum from technical analysis and a favorable outlook from the earnings call provide some balance. The company's ability to manage costs and maintain cash flow in a challenging market environment is a notable strength.

Tile Shop (TTSH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$280.46M

Dividend YieldN/A

Average Volume (3M)71.54K

Price to Earnings (P/E)340.8

Beta (1Y)1.01

Revenue Growth-6.41%

EPS Growth-91.36%

CountryUS

Employees1,291

SectorConsumer Cyclical

Sector Strength59

IndustryHome Improvement

Share Statistics

EPS (TTM)<0.01

Shares Outstanding44,729,923

10 Day Avg. Volume70,450

30 Day Avg. Volume71,542

Financial Highlights & Ratios

PEG Ratio-5.85

Price to Book (P/B)2.23

Price to Sales (P/S)0.00

P/FCF Ratio91.56

Enterprise Value/Market Cap1.41

Enterprise Value/Revenue0.28

Enterprise Value/Gross Profit1.75

Enterprise Value/Ebitda4.29

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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 makes money primarily through the sale of its diverse range of tile products and related accessories. Its revenue model is heavily based on retail sales from its physical showrooms and online store, providing customers with access to its extensive inventory. The company benefits from a well-established supply chain and strategic relationships with manufacturers, enabling competitive pricing and a steady supply of high-demand products. Additionally, The Tile Shop offers design services and consultations, which can drive additional sales by helping customers visualize and execute their tiling projects. These services enhance customer satisfaction and encourage repeat business, further contributing to the company's revenue.

Tile Shop Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 15.19%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

While the company faced challenges with a decrease in comparable store sales and external market factors, it achieved positive developments in increasing tile volume sold, improving gross margins, effective cost management, and maintaining a strong cash position. The highlights outweigh the lowlights, indicating a positive outlook.

Q1-2025 Updates

Positive Updates

Increase in Tile Volume Sold

Despite a decrease in overall comparable store sales by 4%, there was an increase in the volume of tile sold, driven by the expansion of competitively priced products and the addition of the Arbor collection of luxury vinyl tile products.

Gross Margin Rate Improvement

The gross margin rate increased by 20 basis points compared to the first quarter of 2024, largely due to a decrease in inventory write-offs.

Successful Cost Management

SG&A expenses remained in line with the prior year, with decreases in depreciation, distribution center closure costs, and benefits costs offsetting increases in marketing, training, and IT expenses.

Sublease Income from Distribution Center

Following the end of the quarter, the company successfully subleased their New Jersey distribution space, expected to generate $2 million in subleasing income by the third quarter of 2026.

Strong Cash Flow and Balance Sheet

The company generated $10 million in operating cash flow and added $6.1 million to their cash balance, reaching $27.1 million at the end of the quarter.

Negative Updates

Decrease in Comparable Store Sales

Comparable store sales decreased by 4% due to lower store traffic and the absence of an extra day from the leap year in 2024.

Market Challenges

The company faced challenges from lower housing turnover, market volatility, consumer confidence concerns, and tariff issues.

Company Guidance

During the first quarter of fiscal year 2025, Tile Shop Holdings, Inc. experienced a 4% decrease in comparable store sales, attributed to lower store traffic and the absence of a leap year day that contributed approximately $1 million in sales in the previous year. Despite this, the company reported an increase in tile volume sales, driven by the expansion of entry-level products and the addition of luxury vinyl tile and large format tiles to their offerings. Tile Shop maintained an average ticket value by selling a higher volume of lower-priced products, while achieving a gross margin rate of 66%, a 20 basis point increase from the prior year, largely due to reduced inventory write-offs. SG&A expenses were steady at $57.9 million, with notable changes including decreases in depreciation and benefits costs, offset by increases in marketing, training, and IT expenses. The company also reported a $10 million operating cash flow and a cash balance increase to $27.1 million. With a diverse supplier base spanning over 25 countries and strategic partnerships with designers and domestic manufacturers, Tile Shop is positioned to navigate current market challenges effectively.

Tile Shop Financial Statement Overview

Summary

Tile Shop's financial statements indicate challenges in revenue growth and profitability. The income statement shows declining revenue trends and low net profit margins. The balance sheet has moderate leverage but low ROE, suggesting inefficiencies. Cash flows are concerning with declining free cash flow, though operating cash remains strong relative to net income.

Income Statement

Neutral

Tile Shop's income statement shows a declining revenue trend over recent years, with a slight increase in gross profit margin for TTM (Trailing-Twelve-Months) at 64.38%. However, net profit margin has decreased to 0.31% in TTM, indicating pressures on profitability. EBIT and EBITDA margins are relatively low at 0.67% and 3.17%, respectively, reflecting operational challenges.

Balance Sheet

Neutral

The balance sheet reveals a moderate debt-to-equity ratio of 1.14, which indicates a balanced approach to leveraging. Return on Equity (ROE) stands at 0.88% for TTM, which is quite low, suggesting limited efficiency in generating profits from equity. The equity ratio is 37.93%, indicating a fair amount of equity in the capital structure.

Cash Flow

Positive

Tile Shop's cash flow statement shows a negative trend in free cash flow growth at -75.61% in TTM, highlighting liquidity concerns. The operating cash flow to net income ratio is 17.14, and the free cash flow to net income ratio is 2.84, suggesting strong cash generation relative to reported earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
343.35M	347.07M	377.15M	394.70M	370.70M	325.06M
	Gross Profit
225.63M	227.87M	243.06M	258.94M	253.13M	221.53M
	EBIT
1.42M	3.52M	16.16M	22.61M	20.61M	6.38M
	EBITDA
18.44M	21.28M	37.39M	47.75M	47.99M	37.71M
	Net Income Common Stockholders
804.00K	2.32M	10.07M	15.70M	14.77M	6.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.93M	20.96M	8.62M	5.95M	9.36M	9.62M
	Total Assets
353.96M	319.60M	316.67M	345.82M	340.76M	342.69M
	Total Debt
145.80M	142.58M	139.96M	176.62M	143.45M	149.90M
	Net Debt
109.86M	121.62M	131.34M	170.67M	134.09M	140.28M
	Total Liabilities
209.61M	196.69M	196.99M	237.05M	218.53M	203.63M
	Stockholders Equity
144.36M	122.91M	119.69M	108.77M	122.22M	139.06M
Cash Flow		Free Cash Flow
3.07M	12.57M	46.75M	-11.31M	28.62M	63.63M
	Operating Cash Flow
18.51M	27.11M	62.06M	2.71M	39.69M	65.60M
	Investing Cash Flow
-15.24M	-14.34M	-15.26M	-14.03M	-11.07M	-1.97M
	Financing Cash Flow
-315.00K	-503.00K	-45.93M	9.11M	-28.90M	-63.33M

Tile Shop Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.22

Price Trends

50DMA

5.95

Positive

100DMA

6.50

Negative

200DMA

6.54

Negative

Market Momentum

MACD

0.10

Negative

RSI

52.53

Neutral

STOCH

42.10

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 6.22 is above the 20-day moving average (MA) of 6.16, above the 50-day MA of 5.95, and below the 200-day MA of 6.54, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.10 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 35 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEYS	73 Outperform	$306.13M	10.53	11.76%	3.38%	-5.46%	-1.09%
HVT.A	70 Outperform	$335.64M	16.33	6.97%	5.89%	-12.29%	-55.73%
HVT	70 Neutral	$335.64M	16.23	6.97%	6.30%	-12.29%	-55.73%
MOV	68 Neutral	$253.25M	19.85	3.67%	8.72%	-1.36%	-54.97%
LOVE	65 Neutral	$310.11M	34.77	5.33%	―	-2.80%	-49.06%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
TTSH	61 Neutral	$280.46M	340.76	0.66%	―	-6.41%	-91.36%

* Consumer Cyclical Sector Average

Performance Comparison

TTSH

Tile Shop

6.22

-0.41

-6.18%

HVT.A

Haverty Furn Cl A SC

20.16

-4.64

-18.71%

HVT

Haverty

19.93

-4.76

-19.28%

MOV

Movado Group

15.99

-7.42

-31.70%

WEYS

Weyco Group

32.04

4.76

17.45%

LOVE

The Lovesac Company

20.50

-5.48

-21.09%

Tile Shop Corporate Events

Executive/Board ChangesShareholder Meetings

Tile Shop Holds Annual Stockholders Meeting, Elects Directors

Neutral

Jun 3, 2025

On June 3, 2025, Tile Shop Holdings, Inc. conducted its Annual Meeting of Stockholders online, where key decisions were made, including the election of Peter J. Jacullo III and Cabell H. Lolmaugh as Class I directors until 2028. The meeting also saw the ratification of RSM US LLP as the independent accounting firm for 2025, and the approval of executive compensation on a non-binding basis. The board decided to hold annual advisory votes on executive compensation, with the next vote scheduled for the 2026 Annual Meeting.

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.