NYSE:FTCH

Stock Analysis Report

Executive Summary

Farfetch Limited, through its subsidiary, Farfetch.com Limited, provides an online marketplace for luxury goods in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.6%

FTCH

3.9%

US Online Retail

9.9%

US Market


1 Year Return

-70.1%

FTCH

1.7%

US Online Retail

-11.9%

US Market

Return vs Industry: FTCH underperformed the US Online Retail industry which returned 3% over the past year.

Return vs Market: FTCH underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

FTCHIndustryMarket
7 Day10.6%3.9%9.9%
30 Day-15.5%-4.3%-15.0%
90 Day-22.1%-6.5%-21.5%
1 Year-70.1%-70.1%1.8%1.7%-10.0%-11.9%
3 Yearn/a72.3%72.1%12.3%5.1%
5 Yearn/a177.2%165.0%32.5%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FTCH ($8.04) is trading above our estimate of fair value ($7.09)

Significantly Below Fair Value: FTCH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FTCH is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: FTCH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FTCH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FTCH is overvalued based on its PB Ratio (2.3x) compared to the US Online Retail industry average (2.2x).


Next Steps

Future Growth

How is Farfetch forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTCH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FTCH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FTCH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FTCH's revenue (20.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FTCH's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FTCH is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Farfetch performed over the past 5 years?

-38.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTCH is currently unprofitable.

Growing Profit Margin: FTCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FTCH is unprofitable, and losses have increased over the past 5 years at a rate of -38.7% per year.

Accelerating Growth: Unable to compare FTCH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FTCH is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (15%).


Return on Equity

High ROE: FTCH has a negative Return on Equity (-27.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Farfetch's financial position?


Financial Position Analysis

Short Term Liabilities: FTCH's short term assets ($645.3M) exceed its short term liabilities ($468.0M).

Long Term Liabilities: FTCH's short term assets ($645.3M) exceed its long term liabilities ($422.0M).


Debt to Equity History and Analysis

Debt Level: FTCH is debt free.

Reducing Debt: FTCH had no debt 5 years ago.


Balance Sheet

Inventory Level: FTCH has a low level of unsold assets or inventory.

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FTCH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FTCH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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 payouts.

High Dividend: Unable to evaluate FTCH'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 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.


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 FTCH'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?

5.2yrs

Average management tenure


CEO

Jos Neves (44yo)

12.17s

Tenure

Mr. José Ferreira Neves, also known as Jos, is the founder of Farfetch Limited and has been its Chief Executive Officer since 2008 and Co-Chairman since February 2017. Mr. Neves is the Founder of Farfetch  ...


Leadership Team

NamePositionTenureCompensationOwnership
José Neves
Founder12.17yrsno data0.57% $15.5m
Elliot Jordan
Chief Financial Officer5.17yrsno data0.021% $575.3k
Luis Teixeira
Chief Operations Officer0.17yrno datano data
Cipriano Sousa
Chief Technology Officerno datano datano data
Alice Ryder
Vice President of Investor Relationsno datano datano data
James L. Maynard
General Counsel & EVP of Group Legalno datano datano data
Susannah Clark
Global Vice President of Communicationsno datano datano data
Sian Keane
Chief People Officerno datano datano data
Giorgio Belloli
Chief Commercial & Sustainability Officerno datano datano data
Sandrine Deveaux
Executive Vice President of Store of the Futureno datano datano data

5.2yrs

Average Tenure

Experienced Management: FTCH's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Neves
Founder12.17yrsno data0.57% $15.5m
Daniel Rimer
Independent Non Executive Director5.08yrsno datano data
Michael Risman
Independent Non Executive Director5.92yrsno datano data
Dana Evan
Independent Non Executive Director4.92yrsno data0.19% $5.1m
David Rosenblatt
Independent Non Executive Director2.83yrsno data0.036% $987.0k
Jonathan Kamaluddin
Independent Non Executive Director4.75yrsno data0.097% $2.6m
Natalie Massenet
Co-Chairman3.08yrsno data0.044% $1.2m
Jainwen Liao
Independent Non Executive Director1.08yrsno datano data

3.9yrs

Average Tenure

51yo

Average Age

Experienced Board: FTCH's board of directors are considered experienced (3.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.6%.


Top Shareholders

Company Information

Farfetch Limited's company bio, 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
  • Market Cap: US$2.730b
  • Shares outstanding: 339.60m
  • Website: https://aboutfarfetch.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTCHNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDSep 2018
F1FDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURSep 2018
0K6OLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDSep 2018

Biography

Farfetch Limited, through its subsidiary, Farfetch.com Limited, provides an online marketplace for luxury goods in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in 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. It also offers web design, build, development, and retail distribution solutions for retailers and brands. In addition, the company operates two Browns retail stores in London; one Stadium Goods retail store in New York; and two New Guards Off-White stores in Las Vegas and New York. Further, it operates approximately 50 New Guards franchised retail stores. Farfetch Limited was founded in 2007 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 05:04
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.