Fact based stock research
Purple Innovation (NasdaqCM:PRPL)
US74640Y1064
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Purple Innovation stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Purple Innovation (Home Furnishings, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Purple Innovation are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives), and are riskily financed (Safety Rank of 28, which means above-average debt burdens) but show above-average growth (Growth Rank of 75). ...read more
RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Purple Innovation's financial characteristics. As the company Purple Innovation shows low value with an Obermatt Value Rank of 21 (79% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 75% of comparable companies (Obermatt Growth Rank is 75). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 28 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Purple Innovation, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Home Furnishings |
| Index | NASDAQ |
| Size class | Medium |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Purple Innovation
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 10 |
|
7 |
|
54 |
|
21 |
|
| GROWTH | ||||||||
| GROWTH | 18 |
|
1 |
|
11 |
|
75 |
|
| SAFETY | ||||||||
| SAFETY | 31 |
|
25 |
|
39 |
|
28 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
48 |
|
28 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
1 |
|
23 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Purple Innovation (Home Furnishings, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Purple Innovation are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives), and are riskily financed (Safety Rank of 28, which means above-average debt burdens) but show above-average growth (Growth Rank of 75). ...read more
RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Purple Innovation's financial characteristics. As the company Purple Innovation shows low value with an Obermatt Value Rank of 21 (79% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 75% of comparable companies (Obermatt Growth Rank is 75). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 28 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Purple Innovation, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 10 |
|
7 |
|
54 |
|
21 |
|
| GROWTH | ||||||||
| GROWTH | 18 |
|
1 |
|
11 |
|
75 |
|
| SAFETY | ||||||||
| SAFETY | 31 |
|
25 |
|
39 |
|
28 |
|
| COMBINED | ||||||||
| COMBINED | 1 |
|
1 |
|
23 |
|
28 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 21 (worse than 79% compared with alternatives), Purple Innovation shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Purple Innovation. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value concerning Purple Innovation's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 94% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 97% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Purple Innovation to 3. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 21, is a sell recommendation based on Purple Innovation's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 63 |
|
44 |
|
91 |
|
91 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 3 |
|
1 |
|
94 |
|
94 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 13 |
|
11 |
|
79 |
|
3 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 10 |
|
7 |
|
54 |
|
21 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Purple Innovation shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Purple Innovation. Profit Growth, with a rank of 92 (better than 92% of its competitors), and Capital Growth, with a rank of 91, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 27, which means that, currently, professionals expect the company to grow less than 73% of its competitors, and Stock Returns are at a rank of 29. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 59 |
|
63 |
|
77 |
|
27 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
8 |
|
1 |
|
92 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
21 |
|
21 |
|
91 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 21 |
|
3 |
|
1 |
|
29 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 18 |
|
1 |
|
11 |
|
75 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company Purple Innovation has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Purple Innovation is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Purple Innovation.Leverage is at 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors.Refinancing is at a rank of 60, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 60% of its competitors. Liquidity is at 4, meaning that the company generates less profit to service its debt than 96% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), Purple Innovation has a financing structure that is riskier than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Purple Innovation more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 48 |
|
36 |
|
77 |
|
64 |
|
| REFINANCING | ||||||||
| REFINANCING | 21 |
|
31 |
|
66 |
|
60 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 56 |
|
44 |
|
4 |
|
4 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 31 |
|
25 |
|
39 |
|
28 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
36 |
|
45 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
69 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
48 |
|
26 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
50 |
|
11 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
48 |
|
28 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Purple Innovation from December 19, 2024.
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