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FTCH

Farfetch NYSE:FTCH Stock Report

Last Price

US$7.27

Market Cap

US$2.8b

7D

-22.9%

1Y

-85.5%

Updated

03 Jul, 2022

Data

Company Financials +
FTCH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends0/6

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.

Farfetch Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Farfetch
Historical stock prices
Current Share PriceUS$7.27
52 Week HighUS$51.53
52 Week LowUS$6.53
Beta3.14
1 Month Change-23.72%
3 Month Change-53.96%
1 Year Change-85.46%
3 Year Change-63.52%
5 Year Changen/a
Change since IPO-74.45%

Recent News & Updates

Jun 29

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.

Jun 17
Is Farfetch (NYSE:FTCH) Using Too Much Debt?

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...

Jun 16

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.

Shareholder Returns

FTCHUS Online RetailUS Market
7D-22.9%-4.4%-2.5%
1Y-85.5%-42.7%-21.2%

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.

Price Volatility

Is FTCH's price volatile compared to industry and market?
FTCH volatility
FTCH Average Weekly Movement17.7%
Online Retail Industry Average Movement13.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

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

FoundedEmployeesCEOWebsite
20076,464Jos Neveshttps://aboutfarfetch.com

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

How do Farfetch's earnings and revenue compare to its market cap?
FTCH fundamental statistics
Market CapUS$2.77b
Earnings (TTM)US$1.69b
Revenue (TTM)US$2.29b

1.6x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FTCH income statement (TTM)
RevenueUS$2.29b
Cost of RevenueUS$1.26b
Gross ProfitUS$1.03b
Other Expenses-US$663.42m
EarningsUS$1.69b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.43
Gross Margin44.88%
Net Profit Margin73.90%
Debt/Equity Ratio50.6%

How did FTCH perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FTCH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

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

  • PEG Ratio

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.

FTCH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA-8.1x
PEG Ratio-0.04x

Price to Earnings Ratio vs Peers

How does FTCH's PE Ratio compare to its peers?

FTCH PE Ratio vs Peers
The above table shows the PE ratio for FTCH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.4x
RVLV Revolve Group
19.3x22.0%US$1.9b
SSTK Shutterstock
23.4x19.6%US$2.1b
OSTK Overstock.com
9.4x11.2%US$1.1b
NEGG Newegg Commerce
37.5xn/aUS$1.4b
FTCH Farfetch
1.6x-38.4%US$2.8b

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.

FTCH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.6x
Fair PE Ratio7.1x

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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Future Growth

How is Farfetch forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-38.4%

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.


Discover growth companies

Past Performance

How has Farfetch performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.9%

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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Financial Health

How is Farfetch's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


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Dividend

What is Farfetch current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • 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.


Discover strong dividend paying companies

Management

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

5.0yrs

Average management tenure


CEO

Jos Neves (47 yo)

15.5yrs

Tenure

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...


Leadership Team

Experienced Management: FTCH's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: FTCH's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Top Shareholders

Company Information

Farfetch Limited's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Farfetch Limited
  • The Bower
  • 211 Old Street
  • London
  • Greater London
  • EC1V 9NR
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.