RENT$8.65
$8.64
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AI RENT Summary
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Powered by LiveAIOverall Analysis
HoldRent the Runway shows a mixed investment profile. While its core business model addresses a specific consumer demand, significant profitability challenges and a high debt load present considerable risks. The company's stock performance has been weak, indicating investor skepticism. A 'Hold' rating reflects the uncertainty, with potential upside contingent on improving financials and a more stable market for its services.
Thematic
Rent the Runway operates within the growing 'closet-sharing' or rental economy, which benefits from trends towards sustainability, access over ownership, and curated fashion experiences. However, the market is competitive, and consumer adoption can be cyclical.
Fundamental
Rent the Runway faces significant financial headwinds. The company is unprofitable, has a substantial debt burden relative to its equity, and has experienced negative free cash flow in recent periods. While revenue has shown some growth, it has not translated into profitability.
Technical
The stock is exhibiting a strong downtrend across multiple timeframes. Key moving averages are trending downwards, and momentum indicators suggest selling pressure. The current price is significantly below its 52-week high, reflecting poor market sentiment.
| Factor | Score |
|---|---|
| Sustainability & Circular Economy | 75 |
| Access Economy Trend | 70 |
| Competition | 40 |
| Consumer Discretionary Spending | 50 |
| Technology & Logistics | 65 |
| Factor | Score |
|---|---|
| Valuation | 35 |
| Profitability | 10 |
| Growth | 45 |
| Balance Sheet Health | 5 |
| Cash Flow | 20 |
| Factor | Score |
|---|---|
| Trend Analysis | 20 |
| Momentum | 50 |
| Price Performance | 15 |
| Support & Resistance | 30 |
| Volume Trends | 40 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Negative P/E Ratio
The trailing twelve months (TTM) Price-to-Earnings (P/E) ratio is negative (-0.3), which can indicate that the company is not currently profitable. However, a negative P/E can sometimes be seen as an opportunity if the company is expected to return to profitability.
Low Price-to-Sales Ratio
The trailing twelve months (TTM) Price-to-Sales (P/S) ratio is 0.1, suggesting the stock is trading at a low multiple relative to its revenue. This could indicate potential undervaluation if revenue growth is sustainable.
Bearish Points (9)
Consistent Net Losses
The company has consistently reported net losses on an annual basis, with a TTM net income of -$74.0 million and negative net margins ranging from -22.8% to -104.2% over the last four reported years. This raises significant concerns about long-term viability.
Negative Earnings Per Share (EPS)
The Earnings Per Share (EPS) on a trailing twelve months (TTM) basis is -$19.06, confirming the company is not generating profits on a per-share basis.
Calendar
June 2025
6
Next Earnings Date
H: $
A: $
L: $
Profile
Rent the Runway, Inc. operates shared designer closet in the United States. The company provides evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.
Seasonals
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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