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POSH

Poshmark NasdaqGS:POSH Stock Report

Last Price

US$13.86

Market Cap

US$1.1b

7D

9.2%

1Y

-49.1%

Updated

15 Aug, 2022

Data

Company Financials +
POSH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

POSH Stock Overview

Poshmark, Inc. operates as a social marketplace for new and secondhand style products in the United States, Canada, India, and Australia.

Poshmark, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Poshmark
Historical stock prices
Current Share PriceUS$13.86
52 Week HighUS$30.06
52 Week LowUS$8.97
Beta0
1 Month Change35.09%
3 Month Change18.26%
1 Year Change-49.08%
3 Year Changen/a
5 Year Changen/a
Change since IPO-86.35%

Recent News & Updates

Jul 05

Poshmark Continues Investments But Operating Losses Worsen

Poshmark went public in January 2021, raising approximately $277 million in a U.S. IPO. The company operates an online marketplace connecting buyers and sellers of clothing and related accessories. POSH has produced revenue growth but operating losses have worsened significantly and it faces a recession that may already be underway. I'm on Hold for POSH until management can make meaningful progress toward operating breakeven. A Quick Take On Poshmark Poshmark (POSH) went public in January 2021, raising around $277 million in gross proceeds in an IPO that was priced at $42.00 per share. The firm operates an online marketplace that enables users to resell used or sell new clothing and accessories. I'm on Hold for POSH until we see management making progress toward operating breakeven while reigniting revenue growth. Poshmark Overview Redwood City, California-based Poshmark was founded to create a marketplace for the sale of new and used apparel, accessories and other products. The site acts as a form of social commerce, encouraging users to connect with each other in a safe manner. Management is headed by co-founder, president and CEO Manish Chandra, who was previously co-founder of Kaboodle, an online shopping website acquired by Hearst Communications. The company's primary offerings include: Buy Sell Analytics Logistics Social Commerce The firm acquires buyers and sellers via online marketing efforts and its mobile apps, which it advertises on the major app store platforms. Poshmark's Market & Competition The global market for selling clothing online is extremely large, in the hundreds of billions of dollars and has been growing quickly. The industry continued to grow during the main part of the Covid-19 pandemic, although it has been hampered to some degree by logistical challenges. According to a report by Digital Commerce 360, online apparel sales represented 38.6% of total U.S. apparel sales in 2019 and accounted for all of the growth in retail clothing sales. The market share of the industry has grown steadily in recent years, as the report chart below shows: U.S. Apparel Ecommerce Market (Digital Commerce 360) Major competitive or other industry participants include: Amazon (AMZN) eBay (EBAY) Etsy (ETSY) Facebook (FB) Mercari (OTCPK:MRCIF) Shopify (SHOP) T.J. Maxx (TJX) Walmart (WMT) Poshmark's Recent Financial Performance Total revenue by quarter has grown unevenly in the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has followed a similar trajectory to that of total revenue: 5 Quarter Gross Profit (Seeking Alpha) SG&A expenses as a percentage of total revenue by quarter have remained fairly high over the past 5 quarters: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have worsened in recent quarters: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also trended further into negative territory: 5 Quarter Earnings Per Share (Seeking Alpha) In the past 12 months, POSH's stock price has dropped 75 percent vs. the U.S. S&P 500 index' fall of around 13.4 percent, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation Metrics For Poshmark Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Market Capitalization $820,550,000 Enterprise Value $237,030,000 Price / Sales [TTM] 2.40 Enterprise Value / Sales [TTM] 0.71 Operating Cash Flow [TTM] $22,450,000 Revenue Growth Rate [TTM] 17.87% CapEx Ratio 13.20 Earnings Per Share -$0.49 (Source - Seeking Alpha) As a reference, a relevant partial public comparable would be Etsy; shown below is a comparison of their primary valuation metrics: Metric Etsy Poshmark Variance Price / Sales [TTM] 4.31 2.40 -44.3% Enterprise Value / Sales [TTM] 4.90 0.71 -85.5% Operating Cash Flow [TTM] $562,630,000 $22,450,000 -96.0% Revenue Growth Rate 15.1% 17.9% 18.3% (Source - Seeking Alpha) Commentary On Poshmark In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted the firm's gross merchandise value [GMV] growth of 12% despite a high comparison quarter in 2021 due to the pandemic period. Co-founder and CEO Chandra believes the company is well positioned at the intersection of online, social and sustainable shopping trends. The company is also restarting its in-person community events, which should help to reignite the growth of new consumers while keeping existing users more engaged.

Shareholder Returns

POSHUS Online RetailUS Market
7D9.2%2.7%3.6%
1Y-49.1%-26.0%-9.6%

Return vs Industry: POSH underperformed the US Online Retail industry which returned -26.8% over the past year.

Return vs Market: POSH underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is POSH's price volatile compared to industry and market?
POSH volatility
POSH Average Weekly Movement9.5%
Online Retail Industry Average Movement12.5%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: POSH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: POSH's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011750Manish Chandrahttps://poshmark.com

Poshmark, Inc. operates as a social marketplace for new and secondhand style products in the United States, Canada, India, and Australia. The company offers apparel, footwear, home, beauty, and pet products, as well as accessories. As of December 31, 2021, it had 7.6 million active buyers.

Poshmark, Inc. Fundamentals Summary

How do Poshmark's earnings and revenue compare to its market cap?
POSH fundamental statistics
Market CapUS$1.08b
Earnings (TTM)-US$58.54m
Revenue (TTM)US$343.67m

3.1x

P/S Ratio

-18.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
POSH income statement (TTM)
RevenueUS$343.67m
Cost of RevenueUS$56.14m
Gross ProfitUS$287.53m
Other ExpensesUS$346.07m
Earnings-US$58.54m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.75
Gross Margin83.66%
Net Profit Margin-17.03%
Debt/Equity Ratio0%

How did POSH perform over the long term?

See historical performance and comparison