NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$2.1b

Last Updated

2021/05/07 22:39 UTC

Data Sources

Company Financials +

Executive Summary

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. More Details


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Purple Innovation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRPL is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PRPL's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-10.7%

PRPL

3.9%

US Consumer Durables

-0.3%

US Market


1 Year Return

137.8%

PRPL

115.2%

US Consumer Durables

50.2%

US Market

Return vs Industry: PRPL exceeded the US Consumer Durables industry which returned 122.3% over the past year.

Return vs Market: PRPL exceeded the US Market which returned 51.8% over the past year.


Shareholder returns

PRPLIndustryMarket
7 Day-10.7%3.9%-0.3%
30 Day-7.2%8.1%2.2%
90 Day-20.0%21.1%3.8%
1 Year137.8%137.8%117.6%115.2%52.7%50.2%
3 Year197.0%197.0%85.8%78.5%63.4%53.1%
5 Yearn/a121.7%105.8%129.6%104.0%

Long-Term Price Volatility Vs. Market

How volatile is Purple Innovation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Purple Innovation undervalued compared to its fair value and its price relative to the market?

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRPL ($30.44) is trading below our estimate of fair value ($32.54)

Significantly Below Fair Value: PRPL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PRPL is poor value based on its PE Ratio (315.2x) compared to the US Consumer Durables industry average (17.2x).

PE vs Market: PRPL is poor value based on its PE Ratio (315.2x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: PRPL is poor value based on its PEG Ratio (9.6x)


Price to Book Ratio

PB vs Industry: PRPL is overvalued based on its PB Ratio (12.2x) compared to the US Consumer Durables industry average (2.3x).


Future Growth

How is Purple Innovation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

32.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRPL's forecast earnings growth (32.9% per year) is above the savings rate (2%).

Earnings vs Market: PRPL's earnings (32.9% per year) are forecast to grow faster than the US market (15.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PRPL's revenue (15.3% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: PRPL's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRPL's Return on Equity is forecast to be high in 3 years time (23.4%)


Past Performance

How has Purple Innovation performed over the past 5 years?

37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRPL has a large one-off loss of $5.8M impacting its December 31 2020 financial results.

Growing Profit Margin: PRPL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PRPL has become profitable over the past 5 years, growing earnings by 37.4% per year.

Accelerating Growth: PRPL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PRPL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (56.9%).


Return on Equity

High ROE: PRPL's Return on Equity (6.8%) is considered low.


Financial Health

How is Purple Innovation's financial position?


Financial Position Analysis

Short Term Liabilities: PRPL's short term assets ($229.1M) exceed its short term liabilities ($132.2M).

Long Term Liabilities: PRPL's short term assets ($229.1M) do not cover its long term liabilities ($262.3M).


Debt to Equity History and Analysis

Debt Level: PRPL's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: PRPL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: PRPL's debt is well covered by operating cash flow (183.3%).

Interest Coverage: PRPL's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


Dividend

What is Purple Innovation current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PRPL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PRPL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRPL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRPL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRPL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Joe Megibow (51 yo)

2.58yrs

Tenure

US$3,204,213

Compensation

Mr. Joseph B. Megibow, also known as Joe, has been Chief Executive Officer and Director at Purple Innovation, Inc. since October 1, 2018. Mr. Megibow has been Member of the Advisory Group at Global Partner...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD3.20M) is about average for companies of similar size in the US market ($USD3.76M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PRPL's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: PRPL's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PRPL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.9%.


Top Shareholders

Company Information

Purple Innovation, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Purple Innovation, Inc.
  • Ticker: PRPL
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Implied Market Cap: US$2.054b
  • Market Cap: US$2.040b
  • Shares outstanding: 66.75m
  • Website: https://purple.com

Number of Employees


Location

  • Purple Innovation, Inc.
  • 4100 North Chapel Ridge Road
  • Suite 200
  • Lehi
  • Utah
  • 84043
  • United States

Listings


Biography

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. It also offers sheets, mattress protectors, bed frames, seat cushions, and weighted blankets and duvets. The company mark...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 22:39
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.