Rent the Runway, Inc. (RENT) is a Apparel - Retail company in the Consumer Cyclical sector, currently trading at $5.27. It has a SharesGrow Score of 54/100, indicating a mixed investment profile with 3 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of RENT = $16.17 (+206.8% from the current price, the stock appears undervalued). Analyst consensus target is RENT = $12 (+127.7% upside).
Valuation: RENT trades at a trailing Price-to-Earnings (P/E) of 2.1 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 6.53.
Financials: revenue is $306M, +16.4%/yr average growth. Net income is $70M (loss), growing at +30.4%/yr. Net profit margin is -22.8% (negative). Gross margin is 73% (+38.7 pp trend).
Balance sheet: total debt is $381M with negative equity of -$183M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.98 (strong liquidity). Debt-to-assets is 158.7%. Total assets: $240M.
Analyst outlook: 8 / 19 analysts rate RENT as buy (42%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 69/100 (Pass), Growth 90/100 (Pass), Past 0/100 (Fail), Health 100/100 (Pass), Moat 58/100 (Partial), Future 52/100 (Partial), Income 10/100 (Fail).
