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PRPL

Purple InnovationNasdaqGS:PRPL Stock Report

Market Cap

US$1.5b

7D

-0.2%

1Y

-7.9%

Updated

25 Sep, 2021

Data

Company Financials +
PRPL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health4/6
Dividends0/6

PRPL Overview

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

Purple Innovation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Purple Innovation
Historical stock prices
Current Share PriceUS$22.53
52 Week HighUS$21.69
52 Week LowUS$41.08
Beta1.4
1 Month Change-9.92%
3 Month Change-19.39%
1 Year Change-7.93%
3 Year Change288.45%
5 Year Changen/a
Change since IPO113.27%

Recent News & Updates

Sep 17

Purple Innovation: Promising Purchase On Transitory Issues

The company has experienced some short-term issues that have made investors nervous - including changing CFO and a large manufacturing issue. The company has good growth characteristics and a reasonable valuation if you believe the underlying demand is still there. Purple has great brand, innovation and marketing, allowing for continued market share gains for years to come.

Aug 10
Does Purple Innovation (NASDAQ:PRPL) Have A Healthy Balance Sheet?

Does Purple Innovation (NASDAQ:PRPL) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

PRPLUS Consumer DurablesUS Market
7D-0.2%-0.9%0.1%
1Y-7.9%37.9%35.3%

Return vs Industry: PRPL underperformed the US Consumer Durables industry which returned 37.9% over the past year.

Return vs Market: PRPL underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is PRPL's price volatile compared to industry and market?
PRPL volatility
PRPL Beta1.4
Industry Beta1.45
Market Beta1

Stable Share Price: PRPL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PRPL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20101,600Joe Megibowhttps://purple.com

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 markets and sells its products through direct-to-consumer online channels, retail brick-and-mortar wholesale partners, and third-party online retailers, as well as through its factory outlet and the company owned showrooms.

Purple Innovation Fundamentals Summary

How do Purple Innovation's earnings and revenue compare to its market cap?
PRPL fundamental statistics
Market CapUS$1.51b
Earnings (TTM)-US$137.02m
Revenue (TTM)US$730.02m

2.1x

P/S Ratio

-11.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRPL income statement (TTM)
RevenueUS$730.02m
Cost of RevenueUS$390.52m
Gross ProfitUS$339.50m
ExpensesUS$476.52m
Earnings-US$137.02m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-2.05
Gross Margin46.51%
Net Profit Margin-18.77%
Debt/Equity Ratio26.7%

How did PRPL perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRPL ($22.53) is trading below our estimate of fair value ($51.2)

Significantly Below Fair Value: PRPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRPL is unprofitable, so we can't compare its PE Ratio to the US Consumer Durables industry average.

PE vs Market: PRPL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRPL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRPL is overvalued based on its PB Ratio (9.4x) compared to the US Consumer Durables industry average (2.1x).


Future Growth

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

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRPL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: PRPL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PRPL's is expected to become profitable in the next 3 years.

Revenue vs Market: PRPL's revenue (20% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: PRPL's revenue (20% per year) is forecast to grow faster 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 (30.7%)


Past Performance

How has Purple Innovation performed over the past 5 years?

-85.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRPL is currently unprofitable.

Growing Profit Margin: PRPL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRPL is unprofitable, and losses have increased over the past 5 years at a rate of 85.8% per year.

Accelerating Growth: Unable to compare PRPL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRPL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (77.1%).


Return on Equity

High ROE: PRPL has a negative Return on Equity (-84.92%), as it is currently unprofitable.


Financial Health

How is Purple Innovation's financial position?


Financial Position Analysis

Short Term Liabilities: PRPL's short term assets ($216.8M) exceed its short term liabilities ($120.4M).

Long Term Liabilities: PRPL's short term assets ($216.8M) do not cover its long term liabilities ($297.6M).


Debt to Equity History and Analysis

Debt Level: PRPL's debt to equity ratio (26.7%) is considered satisfactory.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PRPL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PRPL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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?

2.7yrs

Average management tenure


CEO

Joe Megibow (52 yo)

2.92yrs

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 ($USD3.20M) is about average for companies of similar size in the US market ($USD3.67M).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: PRPL's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: PRPL's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 23.2%.


Top Shareholders

Company Information

Purple Innovation, Inc.'s 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$1.505b
  • Market Cap: US$1.495b
  • Shares outstanding: 66.82m
  • Website: https://purple.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:16
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
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.