NasdaqGS:SFIX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: SFIX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

SFIX

-6.6%

US Online Retail

-4.2%

US Market


1 Year Return

1.8%

SFIX

16.0%

US Online Retail

14.0%

US Market

Return vs Industry: SFIX underperformed the US Online Retail industry which returned 22.6% over the past year.

Return vs Market: SFIX underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

SFIXIndustryMarket
7 Day-0.7%-6.6%-4.2%
30 Day21.3%2.3%-1.8%
90 Day14.6%6.8%2.6%
1 Year1.8%1.8%16.0%16.0%16.3%14.0%
3 Yearn/a96.1%95.8%43.2%34.0%
5 Yearn/a203.8%190.1%65.9%47.6%

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

Valuation

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

46.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFIX ($29.37) is trading below our estimate of fair value ($51.61)

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 (113.6x) compared to the Online Retail industry average (32.6x).

PE vs Market: SFIX is poor value based on its PE Ratio (113.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SFIX is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SFIX is overvalued based on its PB Ratio (7.3x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

How is Stitch Fix forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

48.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFIX's forecast earnings growth (48.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SFIX's earnings (48.1% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: SFIX's revenue (16.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SFIX's revenue (16.5% 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 (8%).


Next Steps

Past Performance

How has Stitch Fix performed over the past 5 years?

61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFIX has high quality earnings.

Growing Profit Margin: SFIX's current net profit margins (1.6%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: SFIX's earnings have grown significantly by 61.1% per year over the past 5 years.

Accelerating Growth: SFIX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFIX had negative earnings growth (-35%) over the past year, making it difficult to compare to the Online Retail industry average (15%).


Return on Equity

High ROE: SFIX's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stitch Fix's financial position?


Financial Position Analysis

Short Term Liabilities: SFIX's short term assets ($485.5M) exceed its short term liabilities ($242.9M).

Long Term Liabilities: SFIX's short term assets ($485.5M) exceed its long term liabilities ($145.8M).


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%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Katrina Lake (36yo)

9.1yrs

Tenure

US$5,327,433

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: Katrina's total compensation ($USD5.33M) is about average for companies of similar size in the US market ($USD4.86M).

Compensation vs Earnings: Katrina's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Katrina Lake
Founder9.1yrsUS$5.33m11.88% $331.9m
Michael Smith
COO & Interim CFO0.08yrsUS$3.02m0.78% $21.8m
Scott Darling
Chief Legal Officer & Corporate Secretary3.3yrsUS$1.59m0.057% $1.6m
Elizabeth Spaulding
President0.08yrsno datano data
Cathy Polinsky
Chief Technology Officer3.3yrsno datano data
David Pearce
Head of Strategic Finance & IR0yrsno datano data
Deirdre Findlay
Chief Marketing Officer1.7yrsno datano data
Margaret Wheeler
Chief People & Culture Officer5.9yrsno datano data
Eric Colson
Chief Algorithms Officer7.5yrsno datano data

3.3yrs

Average Tenure

47yo

Average Age

Experienced Management: SFIX's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Katrina Lake
Founder9.1yrsUS$5.33m11.88% $331.9m
John Gurley
Independent Director6.5yrsno data0.74% $20.7m
Steven Anderson
Independent Director8.8yrsno datano data
Sharon McCollam
Lead Independent Director0yrsUS$85.00kno data
Marka Hansen
Independent Director6yrsUS$70.00kno data
Mikkel Svane
Independent Director1.3yrsUS$205.21k0.0061% $169.3k
Kirsten Lynch
Independent Director1.9yrsUS$189.43k0.0030% $84.4k
Elizabeth Williams
Independent Director1.1yrsUS$180.02k0.0037% $103.7k

6.0yrs

Average Tenure

51yo

Average Age

Experienced Board: SFIX's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

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$2.794b
  • Shares outstanding: 101.73m
  • 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, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was founded in 2011 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 02:26
End of Day Share Price2020/02/24 00:00
Earnings2019/11/02
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.