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Rent the Runway, Inc. (RENT) stock analysis

RENTNasdaqRetail-Retail Stores, NECFiscal year ends January 31
Financials through Q2 FY2026, quarter ended Jul 31, 2026Last filing: 10-Q on Sep 11, 2026Score 6/30
$2.43+0.14 (+6.11%)

Close on Nov 12, 2026Market cap $82.07MP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth3Performance2Health0Dividend0

Weak6 of 30 checks passed

Rent the Runway passes 6 of the 30 checks behind our score; 18 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
3/6
Past performance
2/6
Financial health
0/6
Dividend
0/6

What stands out

  • Guidance raised

    Rent the Runway raised its fiscal year 2026 Rental Product Acquired outlook on Sep 11, 2026.

  • P/S below the industry

    Rent the Runway's price-to-sales of 0.21 is below the Miscellaneous Retail median of 0.24 (book value is negative, so we use sales).

  • Growing faster than the industry

    Revenue grew 21.2% over the last twelve months; the Miscellaneous Retail median is 2.6%.

  • Gross margin improving

    Gross margin was 74.7% over the last twelve months, against 72.1% a year earlier.

What to watch

  • Return on capital under 10%

    Return on invested capital was -73.6%, below the 10% that usually covers the cost of capital.

  • Revenue growing under 10% a year

    Revenue grew 3.6% a year over the last three fiscal years, short of the 10% we look for.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 0.4% of total debt; we look for at least 20%.

  • Elevated bankruptcy risk

    The Altman Z-score is -7.06; above 3 is the safe zone and below 1.8 the distress zone.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/S below the industry

    Rent the Runway's price-to-sales of 0.21 is below the Miscellaneous Retail median of 0.24 (book value is negative, so we use sales).

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth3/6

  • Revenue growing under 10% a year

    Revenue grew 3.6% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 21.2% over the last twelve months; the Miscellaneous Retail median is 2.6%.

  • Guidance raised

    Rent the Runway raised its fiscal year 2026 Rental Product Acquired outlook on Sep 11, 2026.

  • Gross margin improving

    Gross margin was 74.7% over the last twelve months, against 72.1% a year earlier.

Past performance2/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on capital under 10%

    Return on invested capital was -73.6%, below the 10% that usually covers the cost of capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 11.8% over the last twelve months, against a 5-year average of -41.0%.

  • Net margin above the industry

    Rent the Runway's net margin of 11.8% is above the Miscellaneous Retail median of -2.5%.

Financial health0/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 0.4% of total debt; we look for at least 20%.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets don't cover short-term debts

    Current assets are 0.67 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is -7.06; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Rent the Runway has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Rent the Runway. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/S at month end
  • Own 5-year median 0.1
  • Miscellaneous Retail median 0.2

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$3.54M
Value traded per 1% price move
$68.88K

Downside

High risk

Typical loss in a bad month
54.1%
Volatility (annualized)
85%
Sharpe ratio, 1 year
-0.56
Beta to the S&P 500 (5Y)
2.13

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2018 to 2025

Gross margin

73.2%+6.8 pts over 5 years

Operating margin

-17.4%+65.4 pts over 5 years

Net margin

6.9%+115.5 pts over 5 years

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