Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Fitbit. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Fitbit's earnings available for a low price, and how does
this compare to other companies in the same industry?
Fitbit is not considered high growth as it is expected to be loss making for the next 1-3 years.
Fitbit's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Fitbit's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 product management, engineering and design for Webshots. He was the Founder of Wind-Up Labs, Inc. and served as its President. He was a Co-Founder of Epesi Technologies and served as its Chief Technology Officer, where he directed technology strategy and implemented the networking protocols for Epesi's distributed datastore product. He served as a Technologist at Morgan Stanley, developing financial analytical applications for quantitative trading. He also served development positions at KPMG in their datamining consulting group and at BCL Computers, developing software for intelligent document routing systems. He has been the Chairman of the Board at Fitbit Inc. since May 2015 and has been its Director since March 2007. He is a serial entrepreneur with a passion for creating great products and companies. Mr. Park holds A.B. in Computer Science at Harvard College.
James's compensation has been consistent with company performance over the past year.
James's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Fitbit management team is about average.
Executive Vice President of Operations
Chief Financial Officer
Vice President of Investor Relations
Chief Marketing Officer
Senior Vice President of People
Senior Vice President of Americas Sales
Senior VP & MD of International
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Fitbit board of directors is about average.
Does The Fitbit Inc (NYSE:FIT) Share Price Tend To Follow The Market?
Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Does Fitbit Inc's (NYSE:FIT) CEO Salary Reflect Performance?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does James Park's Compensation Compare With Similar Sized Companies. … We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$4m
What does Fitbit Inc's (NYSE:FIT) Balance Sheet Tell Us About Its Future?
Fitbit Inc (NYSE:FIT), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … Is FIT right in choosing financial flexibility over lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding
Who Are The Top Investors In Fitbit Inc (NYSE:FIT)?
In this article, I'm going to take a look at Fitbit Inc’s (NYSE:FIT) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … View our latest analysis for Fitbit … NYSE:FIT Ownership Summary August 22nd 18
How Fitbit Inc (NYSE:FIT) Can Impact Your Portfolio Volatility
For Fitbit Inc’s (NYSE:FIT) shareholders, and also potential investors in the stock, understanding how the stock’s risk and return characteristics can impact your portfolio is important. … Generally, an investor should consider two types of risk that impact the market value of FIT. … The second risk is market-wide, which arises from investing in the stock market.
How Much is Fitbit Inc's (NYSE:FIT) CEO Getting Paid?
Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability
With A -72.14% Earnings Drop, Is Fitbit Inc's (NYSE:FIT) A Concern?
After reading Fitbit Inc's (NYSE:FIT) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Was FIT's recent earnings decline worse than the long-term trend and the industry. … FIT is loss-making, with the most recent trailing twelve-month earnings of -US$297.99m (from 31 March 2018), which compared to last year has become
Generally, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 41.75% in the upcoming year compared with the past 5-year average growth rate of -48.81%. … To understand the overall trajectory of FIT's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NYSE:FIT Future Profit Mar 16th 18 From the current net income level of -US$277.19M and the final forecast of -US$391.00M by 2021, the annual rate of growth for FIT’s earnings is 32.22%.
Fitbit Inc (NYSE:FIT) And The Tech Industry Prospect For 2018
Fitbit Inc (NYSE:FIT), is a US$1.21B small-cap, which operates in the tech hardware industry based in United States. … Below, I will examine the sector growth prospects, as well as evaluate whether Fitbit is lagging or leading its competitors in the industry. … If Fitbit has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the tech industry.
Fitbit’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing Fitbit’s FCF by looking at its FCF yield and its operating cash flow growth. … Free Cash Flow = Operating Cash Flows – Net Capital Expenditure Free Cash Flow Yield = Free Cash Flow / Enterprise Value where Enterprise Value = Market Capitalisation + Net Debt In Fitbit’s case, its strong FCF yield of 12.62% over the past year means it sufficiently compensates investors for the risk they are taking on by investing in the stock, as opposed to merely investing in the well-diversified market index.
Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic 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; and Fitbit Coach that offers exercise programs through personal trainer and yoga apps. 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; distributors; 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.
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