Tile Shop Stock To $5?

Tile Shop (TTSH) stock has jumped 292173% during the past day, and is currently trading at $6.43. Our multi-factor assessment suggests that it may be time to sell TTSH stock. We have, overall, a pessimistic view of the stock, and a price of $5 may not be out of reach. We believe there is a lot to fear in TTSH stock given its overall Very Weak operating performance and financial condition. Hence, despite its Very Low valuation, we think that the stock is Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $88664.71221666656 in market cap, Tile Shop provides specialty retail of natural stone and man-made tiles, setting and maintenance materials, and accessories through 143 stores across 31 states and the District of Columbia.

[1] Valuation Looks Very Low

This table highlights how TTSH is valued vs broader market.

[2] Growth Is Very Weak

• Tile Shop has seen its top line shrink at an average rate of -5.2% over the last 3 years
• Its revenues have fallen -3.8% from $352 Mil to $339 Mil in the last 12 months
• Also, its quarterly revenues declined -1.7% to $83 Mil in the most recent quarter from $85 Mil a year ago.

This table highlights how TTSH is growing vs broader market.

[3] Profitability Appears Very Weak

• TTSH last 12 month operating income was $-2.2 Mil representing operating margin of -0.7%
• With cash flow margin of 2.9%, it generated nearly $9.9 Mil in operating cash flow over this period
• For the same period, TTSH generated nearly $-1.7 Mil in net income, suggesting net margin of about -0.5%

This table highlights how TTSH profitability vs broader market.

[4] Financial Stability Looks N/A

[5] Downturn Resilience Is Very Weak

TTSH has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• TTSH stock fell 68.1% from a high of $0.00 on 11 November 2021 to $0.00 on 12 July 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $6.43 on 16 December 2025 $6.43

 
2020 Covid Pandemic

• TTSH stock fell 76.0% from a high of $0.00 on 20 February 2020 to $0.00 on 24 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 17 June 2021

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