$2.94
arrow_drop_up5.66%Is TRNR a Buy or Sell based on AI Analysis?
Fundamental Analysis
Interactive Strength Inc. is showing a strong revenue growth of 41.26%, indicating a positive trend in the company's financial performance. This consistent growth in revenue suggests that the company is effectively increasing its sales and generating higher income. Additionally, the company has a low debt-to-equity ratio, which indicates that it has a solid financial foundation and is not overly reliant on debt to finance its operations. With liabilities of $22.35M and net debts of $10.37M, Interactive Strength Inc. appears to have a manageable level of debt relative to its assets and equity. Moreover, the company's operating margin of -2.39K% reflects a concerning aspect of its financial performance, showing that Interactive Strength Inc. is currently not operating profitably. This negative operating margin suggests that the company may be facing challenges in controlling its operational costs and maximizing its revenue generation. Additionally, the return on assets and return on equity are significantly negative at -80.26% and -11.96K% respectively, indicating that Interactive Strength Inc. is not efficiently utilizing its assets and generating profits for its shareholders. These indicators highlight the need for the company to improve its operational efficiency and profitability in order to enhance its overall financial performance.
Positive Development
The company has announced a 1-for-40 reverse split, which can help to increase liquidity and decrease the cost of trading for investors. The company has maintained a positive net margin, indicating a profitable business model. The company has a strong gross margin, which suggests efficient cost management and pricing strategies. The company has a healthy balance sheet with a low net debt to total capital ratio, indicating that it has a strong financial position.
Negative Development
The company's current ratio is relatively low at 0.2304, indicating potential liquidity issues. The company's earnings per share (EPS) and free cash flow per share (FCF) are negative, indicating that the business may not be generating sufficient earnings to cover its expenses or return value to investors. The company's inventory turnover ratio is relatively low at 1.5697, indicating that it may have high levels of inventory and potentially inefficient supply chain management. The company's pre-tax margin is negative, which suggests that the business is not generating sufficient profits before taxes.
Technical Analysis
Interactive Strength Inc. is currently classified as a "SELL" based on its technical analysis. The company's stock has shown a downward trend with indicators such as RSI and WILLR signaling a buy while MACD, CCI, ADX, ATR, ROC, and STOCHRSI are indicating a hold. The stock's price has fluctuated significantly, with a delta price of $2.02 and a delta price percent of 70.23%. Additionally, the stock is currently trading at $4.89, which is a significant increase from its previous close of $2.87. Moreover, Interactive Strength Inc. has a relatively low current ratio of $0.23 and a quick ratio of $0.13, indicating potential liquidity challenges. The company's operating margin is at -2.39K%, suggesting significant operational inefficiencies. On the other hand, the stock's earnings growth year-over-year is at 11.77%, showing some positive momentum. However, with a high level of debt and negative equity, the company's financial health may be of concern to investors. Overall, the technical analysis of Interactive Strength Inc. highlights both potential buying opportunities and underlying risks for investors to consider.
Conclusion and recommendation
Interactive Strength Inc. (TRNR) is a penny stock with a current price of $4.89 and a market cap of $1.83M. The company's stock has shown a significant price increase of 70.23% from the previous close, indicating high volatility. Despite this, TRNR has a technical rating of "SELL" and has experienced negative price change percentages in various time frames, including -63.1% in the past three months. Additionally, the company has a negative net income of -$51.37M and a high debt-to-assets ratio, suggesting financial instability. In conclusion, investors should approach Interactive Strength Inc. (TRNR) with caution due to its high volatility and negative financial indicators. The company's stock has shown significant price fluctuations and negative earnings growth, making it a risky investment option. It is important for investors to thoroughly research and analyze TRNR's financial health and performance before considering any investment decisions. Additionally, monitoring market trends and industry forecasts could help provide a better understanding of the company's future prospects and potential risks.