Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should We Buy Tile Shop Hldgs, Inc. (TTS) in 2013?

Tile Shop has a high insider ownership. Robert Rucker, the President and CEO, owns a 19.82% stake in the company. Peter Jacullo, Director, had a 12.86% stake in Tile Shop. All executive officers and directors combined hold more than 37% stake in the company. At the current trading price of $17.95 per share, the total market cap is $765.62 million. Tile Shop is quite richly valued, at 17.7x EV/EBITDA. Both Home Depot and Lowe’s are valued a lot cheaper, at 11.8x and 9.75x EV/EBITDA, respectively.

My Foolish Take

With a high insider ownership, a high EBITDA margin, and high comparable store sales growth, Tile Shop seems to be a good stock for investors in the long run. However, because of the expensive valuation, I would rather wait for a price correction before initiating a long position in this company.

The article Should We Buy This Specialty Retailer in 2013? originally appeared on Fool.com and is written by Anh HOANG.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.