The Container Store Group, Inc.TCS
NYSE • Consumer Cyclical
$2.65
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-10.5% YoY
Gross Margin
55.5%
Health Score
3/10
D/E Ratio
3.86
Confidence
LOW
Business Snapshot
The Container Store Group, Inc. operates a chain of specialty retail stores offering custom storage and organization solutions for the home and office. It competes in the highly fragmented home organization market, positioned as a niche leader with a distinct brand focused on custom closets, shelving, and modular units. While no specific market cap is provided, trailing twelve-month revenue of $799.37M suggests a small‑cap enterprise that is heavily dependent on discretionary consumer spending and housing activity. Its defining characteristic is a relatively high gross margin of 55.5%, which points to some pricing power, though persistent net losses undermine the value proposition.
Financial Health
Gross margin improved year-over-year to 55.5% from 52.4%, signalling better cost control or pricing; however, net margin remains deeply negative at -12.3%, indicating the company is still unable to cover operating expenses and interest from gross profits. The balance sheet is stretched, with a debt/equity ratio of 3.86x — more than double the threshold for a highly leveraged firm — and a current ratio of 1.19x that provides only marginal short-term liquidity...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 3.86x indicates high financial leverage, with interest costs likely eating into already negative net income.
- EARNINGS QUALITY — The company has beaten analyst estimates in 0 of the last 4 quarters, reflecting persistent execution missteps and unreliable guidance.
- REVENUE DECELERATION — Revenue fell 10.5% year-over-year, and the 8.1% QoQ improvement does not offset the annual decline; the top line is shrinking overall.
- 52-WEEK POSITION — The current price of $2.65 is well below the midpoint of the 52-week range ($0.32 – $37.80), and is 93% below the 52-week high of $37.80, indicating extreme downward momentum.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....