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RENT

STRONG SELLREMOVE

Rent the Runway, Inc. · Consumer Cyclical · United States · $108M · Avg Vol: $306K/d

9
StockRank
Q
31
V
46
M
9
P/E (TTM)
0.4x
ROE
D/E
Dividend %
AI CONVICTION THESIS

A broken business model with high capital intensity and persistent unprofitable growth, failing both the Terry Smith and Warren Buffett quality filters.

COMPANY DESCRIPTION

Rent the Runway, Inc. operates an online platform for renting designer apparel and accessories, offering a sustainable and accessible alternative to purchasing high-end fashion. The company leverages a sophisticated logistics and cleaning infrastructure to manage its vast inventory and fulfill customer orders. Its pioneering subscription-based model and extensive brand partnerships provide a significant first-mover advantage and brand recognition in the fashion rental market.

FINANCIAL SUMMARY (USD)

Year20222023202420252026CAGR
Revenue296.4M298.2M306.2M329.8M3.6%
EPS-152.85-3.75-3.14-2.051.89
Shares33.6M33.6M33.6M33.4M-0.6%
Debt315.2M356.6M380.8M198.3M-14.3%
Equity-35.3M-122.3M-182.5M-36.1M
Op CF-47.7M-15.7M12.9M3.5M-72.9%
Inv CF-44.3M-54.6M-20.1M-49.5M
Fin CF-4.0M0.7M-0.3M18.6M
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PRICE (1Y)-34.0%
3.133.533.934.344.74May 8Jun 1Jun 22
SMA 50SMA 200
Close
$3.13
RSI (14)
20.4
52W High
$10.13
From 52W High
0.3%

SCORE BREAKDOWN

Quality
31
ROIC
-36.4%1.7
ROE
N/A
GP/Assets
116.9%96.2
Op. Margin
-21.1%3.6
FCF/Assets
-33.4%0.6
Piotroski
774.8
Int. Cover
N/A
D/E Ratio
N/A
Current Ratio
0.75x9.3
Value
46
P/E (TTM)
0.4x99.7
EV/EBITDA
-550.2x25.0
P/FCF
N/A
P/B
-2.0x25.0
P/S
0.3x85.2
Div Yield
N/A
Momentum
9
52W High %
31%2.6
RS 6M
-76%11.1
SMA 50/200
0.79x7.7
EPS Rev 4W
0.0%56.7
EPS Rev 12W
N/A
EPS Improve
-334%0.2
Q Growth
N/A

FUNDAMENTALS

Market Cap
$108M
P/E (Forward)
-0.2x
Gross Margin
73.8%

SECTOR PEERS

Closest peers in Consumer Cyclical, ranked by industry match, size, and score similarity. Cross-listings of RENT are excluded.

TickerCompanyMkt CapStockRankSignal
RENTRent the Runway, Inc.(you)$108M9STRONG SELL
BIRDSmartbird, Inc$57M16STRONG SELL
CATOThe Cato Corporation$64M33SELL
CURVTorrid Holdings Inc.$188M33SELL
SFIXStitch Fix, Inc.$530M25SELL
CALCaleres, Inc.$437M42HOLD
ZUMZZumiez Inc.$301M51HOLD
DLTHDuluth Holdings Inc.$153M79BUY
JILLJ.Jill, Inc.$218M76BUY
SCVLShoe Station Group Inc.$473M65HOLD

Peer medians: ROE 10.2% · P/E 22.7x · Gross margin 37.5%

Rent the Runway, Inc. (RENT) — Stock Score Summary

Rent the Runway, Inc. (RENT) has a MoatMap StockRank of 9/100 based on Quality (31/100), Value (46/100), and Momentum (9/100) factor scores. The current signal is STRONG SELL. A broken business model with high capital intensity and persistent unprofitable growth, failing both the Terry Smith and Warren Buffett quality filters.

Rent the Runway, Inc. operates an online platform for renting designer apparel and accessories, offering a sustainable and accessible alternative to purchasing high-end fashion. The company leverages a sophisticated logistics and cleaning infrastructure to manage its vast inventory and fulfill customer orders. Its pioneering subscription-based model and extensive brand partnerships provide a significant first-mover advantage and brand recognition in the fashion rental market.

Key Financial Metrics

Price$3.13
Market Cap$108M
P/E (TTM)0.42
P/E (Forward)-0.18
Price/Book-2.00
Return on Invested Capital-36.4%
Gross Margin73.8%
Operating Margin-21.1%
Revenue Growth29.2%
Free Cash Flow$-74M

Rent the Runway, Inc. operates in the Apparel Retail industry, part of the Consumer Cyclical sector (United States).

Frequently Asked Questions

What is Rent the Runway, Inc.’s (RENT) StockRank?
MoatMap’s StockRank for Rent the Runway, Inc. (RENT) is 9/100, with a Strong Sell signal. It is a composite of Quality (31), Value (46), and Momentum (9) factor ranks across MoatMap’s 20,000+ stock universe.
Does Rent the Runway, Inc. have an economic moat?
Rent the Runway, Inc. (RENT) has a Quality factor score of 31/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Rent the Runway, Inc. a buy, hold, or sell?
MoatMap’s current signal for Rent the Runway, Inc. (RENT) is Strong Sell, based on a StockRank of 9/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Rent the Runway, Inc. in?
Rent the Runway, Inc. (RENT) operates in the Consumer Cyclical sector, specifically the Apparel Retail industry (United States).