Purple Innovation, Inc. Fundamental Analysis (NASDAQ: PRPL)
Purple Innovation, Inc. Fundamental Analysis (NASDAQ: PRPL)
Purple Innovation, Inc. (NASDAQ: PRPL) shows moderate financial fundamentals with a PE ratio of -0.20, profit margin of -8.90%, and ROE of 70.19%. The company generates $0.4B in annual revenue with weak year-over-year growth of -3.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PRPL's fundamental strength across five key dimensions:
Efficiency Score
WeakPRPL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPRPL trades at attractive valuation levels.
Growth Score
ModeratePRPL shows steady but slowing expansion.
Financial Health Score
ModeratePRPL shows balanced financial health with some risks.
Profitability Score
WeakPRPL struggles to sustain strong margins.
Key Financial Metrics
Is PRPL Expensive or Cheap?
P/E Ratio
PRPL trades at -0.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRPL's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Purple Innovation, Inc. at -0.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -24.84 times EBITDA. This is generally considered low.
How Well Does PRPL Make Money?
Net Profit Margin
For every $100 in sales, Purple Innovation, Inc. keeps $-8.90 as profit after all expenses.
Operating Margin
Core operations generate -7.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $70.19 in profit for every $100 of shareholder equity.
ROA
Purple Innovation, Inc. generates $-15.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Purple Innovation, Inc. generates limited operating cash flow of $4.84M, signaling weaker underlying cash strength.
Free Cash Flow
Purple Innovation, Inc. generates weak or negative free cash flow of $-2.55M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.58 in free cash annually.
FCF Yield
PRPL converts -32.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.70
vs 25 benchmark
ROA
Return on assets percentage
-0.15
vs 25 benchmark
ROCE
Return on capital employed
-1.19
vs 25 benchmark
How PRPL Stacks Against Its Sector Peers
| Metric | PRPL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.20 | 24.94 | Better (Cheaper) |
| ROE | 70.19% | 965.00% | Weak |
| Net Margin | -8.90% | -2081.00% (disorted) | Weak |
| Debt/Equity | -3.41 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 0.47 | 2.36 | Weak Liquidity |
| ROA | -15.46% | 364.00% | Weak |
PRPL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Purple Innovation, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-73.77%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
92.12%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-115.11%
Industry Style: Cyclical, Growth, Discretionary
Declining