NasdaqGS:SFIX

Stock Analysis Report

Stitch Fix

Market Cap

US$2.4b

Last Updated

2019/10/21 00:48 UTC

Data Sources

Company Financials +

Executive Summary

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile app in the United States.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Stitch Fix's share price performed over time and what events caused price changes?

Latest Share Price and Events

Market Performance

7 Day Return

9.7%

SFIX

0.5%

US Online Retail

0.5%

US Market

1 Year Return

-5.3%

SFIX

5.6%

US Online Retail

6.8%

US Market

Return vs Industry: SFIX underperformed the US Online Retail industry which returned 5.6% over the past year.

Return vs Market: SFIX underperformed the US Market which returned 6.8% over the past year.

Shareholder returns

SFIXIndustryMarket
7 Day9.7%0.5%0.5%
30 Day18.2%-3.7%-0.8%
90 Day-12.8%-8.2%-0.9%
1 Year-5.3%-5.3%5.6%5.6%9.2%6.8%
3 Yearn/a76.0%75.8%45.6%36.2%
5 Yearn/a172.9%161.1%63.2%45.4%

Price Volatility Vs. Market

How volatile is Stitch Fix's share price compared to the market and industry in the last 5 years?

Simply Wall St News

5 days ago | Simply Wall St

John Gurley Is The Independent Director of Stitch Fix, Inc. (NASDAQ:SFIX) And They Just Spent US$3.1m On Shares

3 weeks ago | Simply Wall St

A Note On Stitch Fix, Inc.'s (NASDAQ:SFIX) ROE and Debt To Equity

1 month ago | Simply Wall St

Some Stitch Fix (NASDAQ:SFIX) Shareholders Have Copped A Big 55% Share Price Drop

Valuation

Is Stitch Fix undervalued compared to its fair value and its price relative to the market?

49.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SFIX ($23.22) is trading below our estimate of fair value ($45.95)

Significantly Below Fair Value: SFIX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SFIX is poor value based on its PE Ratio (63x) compared to the Online Retail industry average (32.5x).

PE vs Market: SFIX is poor value based on its PE Ratio (63x) compared to the US market (17.7x).

Price to Earnings Growth Ratio

PEG Ratio: SFIX is poor value based on its PEG Ratio (1.8x)

Price to Book Ratio

PB vs Industry: SFIX is overvalued based on its PB Ratio (5.9x) compared to the US Online Retail industry average (2.6x).

Next Steps

Future Growth

How is Stitch Fix forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

35.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFIX's forecast earnings growth (35.3% per year) is above the savings rate (2.7%).

Earnings vs Market: SFIX's earnings (35.3% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SFIX's revenue (15.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SFIX's revenue (15.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SFIX's Return on Equity is forecast to be low in 3 years time (6.6%).

Next Steps

Past Performance

How has Stitch Fix performed over the past 5 years?

2.4%

Last years earnings growth

Earnings and Revenue History

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SFIX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare SFIX's past year earnings growth to its 5-year average.

Earnings vs Industry: SFIX earnings growth over the past year (2.4%) exceeded the Online Retail industry -15.1%.

Return on Equity

High ROE: SFIX's Return on Equity (9.3%) is considered low.

Return on Assets

ROA vs Industry: SFIX's Return on Assets is below or equal to the Online Retail industry average last year.

Return on Capital Employed

ROCE Improving: SFIX's Return on Capital Employed has declined over the past 3 years.

Next Steps

Financial Health

How is Stitch Fix's financial position?

Financial Position Analysis

Short Term Liabilities: SFIX's short term assets ($482.4M) exceeds its short term liabilities ($182.6M)

Long Term Liabilities: SFIX's short term assets (482.4M) exceeds its long term liabilities (37.4M)

Debt to Equity History and Analysis

Debt Level: SFIX is debt free.

Reducing Debt: SFIX has not had any debt for past 5 years.

Debt Coverage: SFIX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SFIX has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Inventory Level: SFIX has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SFIX's debt is covered by short term assets.

Next Steps

Dividend

What is Stitch Fix's current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Stability and Growth of Payments

Notable Dividend: Unable to evaluate SFIX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SFIX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SFIX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFIX's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Next Steps

Management

What is the CEO of Stitch Fix's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure

CEO

Katrina Lake (36yo)

8.8yrs

Tenure

US$601,571

Compensation

Ms. Katrina Lake founded Stitch Fix, Inc. in 2011 and its Chief Executive Officer since 2011. Prior to founding Stitch Fix, from June 2010 until January 2011, Ms. Lake managed the blogger platform at Polyv ...

CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Katrina's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Katrina's compensation with company performance.

Management Age and Tenure

3.0yrs

Average Tenure

47yo

Average Age

Experienced Management: SFIX's management team is considered experienced (3 years average tenure).

Board Age and Tenure

5.7yrs

Average Tenure

51yo

Average Age

Experienced Board: SFIX's board of directors are considered experienced (5.7 years average tenure).

Insider Trading

Insider Buying: SFIX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

BuyUS$3,124,24915 Oct 19
John Gurley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares150,000
Max PriceUS$20.90
SellUS$1,626,19208 Jul 19
Steven Spurlock
EntityIndividual
Shares52,414
Max PriceUS$31.03
SellUS$3,272,31108 Jul 19
Peter Fenton
EntityIndividual
Shares105,731
Max PriceUS$31.19
SellUS$4,654,72521 Jun 19
Matthew Cohler
EntityIndividual
Shares148,820
Max PriceUS$31.68
SellUS$4,510,29314 Jun 19
Bruce Dunlevie
EntityIndividual
Shares157,655
Max PriceUS$29.26
SellUS$310,35414 Jun 19
Peter Fenton
EntityIndividual
Shares11,075
Max PriceUS$28.02
SellUS$101,44314 Jun 19
Steven Spurlock
EntityIndividual
Shares3,620
Max PriceUS$28.02
SellUS$1,338,21314 Jun 19
Alexandre Balkanski
EntityIndividual
Shares47,638
Max PriceUS$28.09
SellUS$66,28414 Jun 19
Peter Fenton
EntityIndividual
Shares2,292
Max PriceUS$28.92
SellUS$21,66114 Jun 19
Steven Spurlock
EntityIndividual
Shares749
Max PriceUS$28.92
SellUS$8,213,51112 Jun 19
Matthew Cohler
EntityIndividual
Shares280,816
Max PriceUS$31.13
SellUS$3,790,43112 Jun 19
Mitchell Lasky
EntityIndividual
Shares135,830
Max PriceUS$27.91
SellUS$160,03912 Jun 19
Mitchell Lasky
EntityIndividual
Shares5,735
Max PriceUS$27.91
SellUS$1,415,46712 Jun 19
Alexandre Balkanski
EntityIndividual
Shares49,767
Max PriceUS$28.49
SellUS$4,806,15012 Jun 19
Mitchell Lasky
EntityIndividual
Shares150,000
Max PriceUS$32.04
SellUS$2,455,67212 Jun 19
Bruce Dunlevie
EntityIndividual
Shares76,737
Max PriceUS$32.00
SellUS$20,88112 Jun 19
Eric Vishria
EntityIndividual
Shares625
Max PriceUS$33.41
SellUS$1,590,61712 Jun 19
Peter Fenton
EntityIndividual
Shares48,655
Max PriceUS$33.41
SellUS$32,52512 Jun 19
Steven Spurlock
EntityIndividual
Shares986
Max PriceUS$32.99
SellUS$7,370,97112 Jun 19
Peter Fenton
EntityIndividual
Shares230,807
Max PriceUS$32.05
SellUS$109,05512 Jun 19
Steven Spurlock
EntityIndividual
Shares3,403
Max PriceUS$32.05
SellUS$3,716,63105 Apr 19
Steven Spurlock
EntityIndividual
Shares130,980
Max PriceUS$29.52
SellUS$2,271,41429 Mar 19
Bruce Dunlevie
EntityIndividual
Shares83,390
Max PriceUS$28.00
SellUS$2,030,47219 Mar 19
Bruce Dunlevie
EntityIndividual
Shares63,444
Max PriceUS$32.00

Ownership Breakdown

Management Team

  • Deirdre Findlay

    Chief Marketing Officer

    • Tenure: 1.3yrs

  • Katrina Lake (36yo)

    Founder

    • Tenure: 8.8yrs
    • Compensation: US$601.57k

  • Scott Darling (47yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 3yrs
    • Compensation: US$325.00k

  • Margaret Wheeler (57yo)

    Chief People & Culture Officer

    • Tenure: 5.6yrs

  • Eric Colson (48yo)

    Chief Algorithms Officer

    • Tenure: 7.2yrs

  • Mike Smith (49yo)

    COO & President

    • Tenure: 1yrs
    • Compensation: US$511.29k

  • Cathy Polinsky (42yo)

    Chief Technology Officer

    • Tenure: 3yrs

  • Paul Yee (47yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$440.00k

  • David Pearce

    Head of Strategic Finance & IR

    • Tenure: 0yrs

Board Members

  • Bill Gurley (52yo)

    Independent Director

    • Tenure: 6.2yrs

  • Steve Anderson (51yo)

    Independent Director

    • Tenure: 8.5yrs

  • Sharon McCollam (56yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$60.42k

  • Marka Hansen (66yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$53.75k

  • Katrina Lake (36yo)

    Founder

    • Tenure: 8.8yrs
    • Compensation: US$601.57k

  • Mikkel Svane (48yo)

    Independent Director

    • Tenure: 1yrs

  • Kirsten Lynch (51yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$141.97k

  • Liz Williams (42yo)

    Director

    • Tenure: 0.8yrs

Company Information

Stitch Fix, Inc.'s company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Stitch Fix, Inc.
  • Ticker: SFIX
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$2.360b
  • Shares outstanding: 101.65m
  • Website: https://www.stitchfix.com

Number of Employees

Location

  • Stitch Fix, Inc.
  • 1 Montgomery Street
  • Suite 1500
  • San Francisco
  • California
  • 94104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFIXNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 2017
SYJDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2017
0L9XLSE (London Stock Exchange)YesClass A Common StockGBUSDNov 2017

Biography

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile app in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, w ...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:48
End of Day Share Price2019/10/18 00:00
Earnings2019/08/03
Annual Earnings2019/08/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.