MeritValue

Torrid Holdings Inc.

CURVdata completeness 100%7 fiscal years on file
The thesis, from the filings

Torrid Holdings Inc. earns about 36% on invested capital, and has bought back 8% of its shares over 5 years. The applicable estimate puts fair value near $1.19 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$1.3B1$1.29B1$1.15B2$1.1B2$1B2
Net income−$29.9M3$50.2M4$11.6M5$16.3M5−$7.03M5
Operating cash flow$121.2M6$53.3M7$42.8M8$77.4M8−$13M8
Capital expenditure$17.6M9$23.4M10$26M11$14.4M11$8.85M11
Free cash flow (derived)$103.7M6$29.9M7$16.8M8$63M8−$21.9M8
Total debt$341.4M12$320.8M13$304.7M14$577.1M15$544.8M15
Cash & equivalents$29M16$13.6M17$11.7M18$48.5M19$20M19
Diluted shares109.9M104.5M104.4M105.7M101.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$21.04
your share of equity
Profit it earned you last year
−$0.69
Free cash flow it threw off
−$2.16
Debt you’d be carrying
$53.71

10 shares is a claim on −$21.04 of net worth that earned you −$0.69 and generated −$2.16 of cash last year, against $53.71 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
36% avg · 5y
FY22 42%FY23 92%FY24 45%FY25 5%FY26 -2%

It earned an average 36% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−8% shares · 5y

Share count is down 8% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 60% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$16.8M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$16.8M
Earnings Power Value
$1.19
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$11.6M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-01-29 · accession 0001628280-25-015891 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-02-03 · accession 0001792781-26-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2022-01-29 · accession 0001628280-24-014351 (NetIncomeLoss)
  4. 10-K · period ending 2023-01-28 · accession 0001628280-25-015891 (NetIncomeLoss)
  5. 10-K · period ending 2024-02-03 · accession 0001792781-26-000007 (NetIncomeLoss)
  6. 10-K · period ending 2022-01-29 · accession 0001628280-24-014351 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-01-28 · accession 0001628280-25-015891 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-02-03 · accession 0001792781-26-000007 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-01-29 · accession 0001628280-24-014351 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2023-01-28 · accession 0001628280-25-015891 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2024-02-03 · accession 0001792781-26-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-01-29 · accession 0001628280-23-009533 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2023-01-28 · accession 0001628280-24-014351 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-02-03 · accession 0001628280-25-015891 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2025-02-01 · accession 0001792781-26-000007 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-01-29 · accession 0001628280-23-009533 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-01-28 · accession 0001628280-24-014351 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-02-03 · accession 0001628280-25-015891 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2025-02-01 · accession 0001792781-26-000007 (CashAndCashEquivalentsAtCarryingValue)