FTCH Stock Overview
Farfetch Limited, together with its subsidiaries, provides an online marketplace for luxury fashion goods in the United States, the United Kingdom, and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$7.27|
|52 Week High||US$51.53|
|52 Week Low||US$6.53|
|1 Month Change||-23.72%|
|3 Month Change||-53.96%|
|1 Year Change||-85.46%|
|3 Year Change||-63.52%|
|5 Year Change||n/a|
|Change since IPO||-74.45%|
Recent News & Updates
Farfetch: Facing Strong Macro Headwinds And Competition
Farfetch, one of the biggest beneficiaries of the pandemic has seen its stock drop over 90% from its all-time high last year. The global luxury fashion company has a huge TAM and is benefiting from the tailwind of physical retail shifting online. However, the company is facing tough competition and is seeing multiple headwinds from the macro environment. Valuation is also not attractive compared to peers when growth and profitability are factored in. I rate the company as a sell.
Is Farfetch (NYSE:FTCH) Using Too Much Debt?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Farfetch: The Story Has Changed, This Will Be An Uphill Battle
Shares of Farfetch have crashed substantially this year, falling 75% year to date. Losses accelerated after a disappointing Q1 earnings release in late May, which showcased tremendous deceleration in revenue and GMV. The company blamed the loss of Russia sales plus a slowdown in China, and severely cut its guidance for the remainder of the year. A relatively large equity investment in Neiman Marcus also makes Farfetch tilt more toward traditional retail and away from e-commerce.
|FTCH||US Online Retail||US Market|
Return vs Industry: FTCH underperformed the US Online Retail industry which returned -42.7% over the past year.
Return vs Market: FTCH underperformed the US Market which returned -21.2% over the past year.
|FTCH Average Weekly Movement||17.7%|
|Online Retail Industry Average Movement||13.3%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.3%|
Stable Share Price: FTCH is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 18% a week.
Volatility Over Time: FTCH's weekly volatility (18%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Farfetch Limited, together with its subsidiaries, provides an online marketplace for luxury fashion goods in the United States, the United Kingdom, and internationally. It operates through three segments: Digital Platform, Brand Platform, and In-Store. The company operates Farfetch.com, an online marketplace, as well as Farfetch app for retailers and brands.
Farfetch Fundamentals Summary
|FTCH fundamental statistics|
Is FTCH overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FTCH income statement (TTM)|
|Cost of Revenue||US$1.26b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||4.43|
|Net Profit Margin||73.90%|
How did FTCH perform over the long term?See historical performance and comparison
Is FTCH undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FTCH?
Other financial metrics that can be useful for relative valuation.
|What is FTCH's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does FTCH's PE Ratio compare to its peers?
|FTCH PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
RVLV Revolve Group
NEGG Newegg Commerce
Price-To-Earnings vs Peers: FTCH is good value based on its Price-To-Earnings Ratio (1.6x) compared to the peer average (22.4x).
Price to Earnings Ratio vs Industry
How does FTCH's PE Ratio compare vs other companies in the US Online Retail Industry?
Price-To-Earnings vs Industry: FTCH is good value based on its Price-To-Earnings Ratio (1.6x) compared to the US Online Retail industry average (16x)
Price to Earnings Ratio vs Fair Ratio
What is FTCH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||1.6x|
|Fair PE Ratio||7.1x|
Price-To-Earnings vs Fair Ratio: FTCH is good value based on its Price-To-Earnings Ratio (1.6x) compared to the estimated Fair Price-To-Earnings Ratio (7.1x).
Share Price vs Fair Value
What is the Fair Price of FTCH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FTCH ($7.27) is trading below our estimate of fair value ($42.42)
Significantly Below Fair Value: FTCH is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: FTCH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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How is Farfetch forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTCH's earnings are forecast to decline over the next 3 years (-38.4% per year).
Earnings vs Market: FTCH's earnings are forecast to decline over the next 3 years (-38.4% per year).
High Growth Earnings: FTCH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FTCH's revenue (14.9% per year) is forecast to grow faster than the US market (8.2% per year).
High Growth Revenue: FTCH's revenue (14.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FTCH is forecast to be unprofitable in 3 years.
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How has Farfetch performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTCH has high quality earnings.
Growing Profit Margin: FTCH became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: FTCH has become profitable over the past 5 years, growing earnings by -12.9% per year.
Accelerating Growth: FTCH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: FTCH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-18.3%).
Return on Equity
High ROE: FTCH's Return on Equity (160.5%) is considered outstanding.
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How is Farfetch's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: FTCH's short term assets ($1.8B) exceed its short term liabilities ($865.6M).
Long Term Liabilities: FTCH's short term assets ($1.8B) do not cover its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: FTCH has more cash than its total debt.
Reducing Debt: FTCH's debt to equity ratio has increased from 8% to 50.6% over the past 5 years.
Debt Coverage: FTCH's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if FTCH's interest payments on its debt are well covered by EBIT.
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What is Farfetch current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FTCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FTCH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FTCH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FTCH's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as FTCH has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jos Neves (47 yo)
Mr. José Ferreira Neves, also known as Jos, founded Farfetch Limited in 2007 and has been its Chief Executive Officer since 2008 and has been its Chairman since August 2020 and served as its Co-Chairman si...
Experienced Management: FTCH's management team is seasoned and experienced (5 years average tenure).
Experienced Board: FTCH's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.
Farfetch Limited's employee growth, exchange listings and data sources
- Name: Farfetch Limited
- Ticker: FTCH
- Exchange: NYSE
- Founded: 2007
- Industry: Internet and Direct Marketing Retail
- Sector: Retail
- Implied Market Cap: US$2.772b
- Shares outstanding: 381.32m
- Website: https://aboutfarfetch.com
Number of Employees
- Farfetch Limited
- The Bower
- 211 Old Street
- Greater London
- EC1V 9NR
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/03 00:00|
|End of Day Share Price||2022/07/01 00:00|
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.