NYSE:FIT

Stock Analysis Report

Executive Summary

Fitbit, Inc., a technology company, provides health solutions in the United States and internationally.

Rewards

Trading at 18.9% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FIT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

FIT

1.2%

US Electronic

0.9%

US Market


1 Year Return

0.6%

FIT

10.3%

US Electronic

20.0%

US Market

Return vs Industry: FIT underperformed the US Electronic industry which returned 10.4% over the past year.

Return vs Market: FIT underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

FITIndustryMarket
7 Day-2.1%1.2%0.9%
30 Day-3.9%-4.7%1.4%
90 Day-4.0%2.2%8.8%
1 Year0.6%0.6%11.4%10.3%22.5%20.0%
3 Year6.3%6.3%37.2%33.4%49.9%40.3%
5 Yearn/a70.1%61.7%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIT ($6.42) is trading below our estimate of fair value ($7.92)

Significantly Below Fair Value: FIT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: FIT 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 FIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FIT is overvalued based on its PB Ratio (2.8x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Fitbit forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: FIT's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FIT's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Fitbit performed over the past 5 years?

-49.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIT is currently unprofitable.

Growing Profit Margin: FIT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FIT is unprofitable, and losses have increased over the past 5 years at a rate of -49% per year.

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

Earnings vs Industry: FIT is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (14.6%).


Return on Equity

High ROE: FIT has a negative Return on Equity (-31.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fitbit's financial position?


Financial Position Analysis

Short Term Liabilities: FIT's short term assets ($1.1B) exceed its short term liabilities ($681.4M).

Long Term Liabilities: FIT's short term assets ($1.1B) exceed its long term liabilities ($106.3M).


Debt to Equity History and Analysis

Debt Level: FIT is debt free.

Reducing Debt: FIT has no debt compared to 5 years ago when its debt to equity ratio was 84.5%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if FIT'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: FIT has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate FIT'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 FIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FIT'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 FIT'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?

3.2yrs

Average management tenure


CEO

James Park (43yo)

12.4yrs

Tenure

US$3,413,904

Compensation

Mr. James Park is Co-Founder of Fitbit Inc. and has been its Chief Executive Officer and President since September 2007. Mr. Park served as Director of Product Development at CNET Networks, where he led pr ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD3.41M) is about average for companies of similar size in the US market ($USD3.78M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Park
Co-Founder12.4yrsUS$3.41m6.05% $101.9m
Eric Friedman
Co-Founder12.9yrsUS$1.49m5.16% $86.9m
Ronald Kisling
Chief Financial Officer1.7yrsUS$1.65m0.061% $1.0m
Jeffrey Devine
Executive Vice President of Operations3yrsUS$1.13m0.057% $960.1k
Andrew Missan
Executive VP6.9yrsUS$1.18m0.072% $1.2m
Thomas Hudson
Vice President of Investor Relations3.3yrsno datano data
Timothy Rosa
Chief Marketing Officer3.1yrsno datano data
Lisa Gross
Senior Vice President of People2.1yrsno datano data
Mark Silverio
Senior Vice President of Americas Sales3.2yrsno datano data
Des Power
Senior VP & MD of International3.5yrsno datano data

3.2yrs

Average Tenure

57yo

Average Age

Experienced Management: FIT's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Park
Co-Founder12.4yrsUS$3.41m6.05% $101.9m
Eric Friedman
Co-Founder12.9yrsUS$1.49m5.16% $86.9m
Christopher Paisley
Independent Director5.1yrsUS$262.25k0.039% $652.1k
Laura Alber
Independent Director3.7yrsUS$236.43k0.029% $492.0k
Steven Murray
Lead Independent Director0yrsUS$269.54k0.029% $491.6k
Bradley Fluegel
Independent Director1.9yrsUS$288.76k0.016% $267.5k
Matthew Bromberg
Independent Director1.9yrsUS$260.11k0.016% $261.7k
Glenda Flanagan
Independent Director3.7yrsUS$245.33k0.036% $609.2k

3.7yrs

Average Tenure

51.5yo

Average Age

Experienced Board: FIT's board of directors are considered experienced (3.7 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 5.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Fitbit, Inc.
  • Ticker: FIT
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$1.684b
  • Shares outstanding: 262.26m
  • Website: https://www.fitbit.com

Number of Employees


Location

  • Fitbit, Inc.
  • 199 Fremont Street
  • 14th Floor
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FITNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2015
5FBDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2015
0IPCLSE (London Stock Exchange)YesClass A Common StockGBUSDJun 2015
5FBETLX (Eurotlx)YesClass A Common StockITEURJun 2015

Biography

Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Charge 3, Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Ace, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic and Fitbit Versa smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness. It also offers Fitbit online dashboard and mobile apps that sync automatically with and display real-time data from its wearable devices; Fitbit Coach that offers exercise programs through personal trainer and yoga apps; and Fitbit Care, a connected health platform for health plans, employers, and health systems. The company sells its products through consumer electronics and specialty, e-commerce, mass merchant, department store, club, and sporting goods and outdoors retailers; wireless carriers; distributor; and Fitbit.com, an online store, as well as directly to consumers. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 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 Analysis2020/02/18 00:57
End of Day Share Price2020/02/14 00:00
Earnings2019/09/28
Annual Earnings2018/12/31


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.