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Fitbit

NYSE:FIT
Snowflake Description

Flawless balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FIT
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The last earnings update was 45 days ago. More info.


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  • Fitbit has significant price volatility in the past 3 months.
FIT Share Price and Events
7 Day Returns
0.2%
NYSE:FIT
0.4%
US Electronic
0.5%
US Market
1 Year Returns
-38.3%
NYSE:FIT
-3.3%
US Electronic
0.8%
US Market
FIT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fitbit (FIT) 0.2% -9.2% -24.8% -38.3% -66.2% -
US Electronic 0.4% -0.7% -3.7% -3.3% 53% 46.7%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • FIT underperformed the Electronic industry which returned -3.3% over the past year.
  • FIT underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
FIT
Industry
5yr Volatility vs Market
Related Companies

FIT Value

 Is Fitbit undervalued based on future cash flows and its price relative to the stock market?

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 undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fitbit to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fitbit.

NYSE:FIT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FIT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.094 (1 + (1- 21%) (11.48%))
1.129
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.129 * 5.96%)
9.46%

Discounted Cash Flow Calculation for NYSE:FIT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fitbit is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:FIT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.46%)
2019 -63.09 Analyst x4 -57.63
2020 -42.63 Analyst x3 -35.58
2021 49.19 Analyst x1 37.51
2022 62.53 Analyst x1 43.56
2023 84.91 Analyst x1 54.03
2024 103.65 Est @ 22.08% 60.26
2025 120.51 Est @ 16.27% 64.01
2026 135.23 Est @ 12.21% 65.62
2027 147.89 Est @ 9.37% 65.56
2028 158.80 Est @ 7.37% 64.31
Present value of next 10 years cash flows $361.64
NYSE:FIT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $158.80 × (1 + 2.73%) ÷ (9.46% – 2.73%)
$2,423.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,423.82 ÷ (1 + 9.46%)10
$981.59
NYSE:FIT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $361.64 + $981.59
$1,343.23
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,343.23 / 255.00
$5.27
NYSE:FIT Discount to Share Price
Calculation Result
Value per share (USD) From above. $5.27
Current discount Discount to share price of $4.46
= -1 x ($4.46 - $5.27) / $5.27
15.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fitbit is available for.
Intrinsic value
15%
Share price is $4.46 vs Future cash flow value of $5.27
Current Discount Checks
For Fitbit to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fitbit's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Fitbit's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Fitbit's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fitbit's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FIT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $-0.74
NYSE:FIT Share Price ** NYSE (2019-06-14) in USD $4.46
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 18.17x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fitbit.

NYSE:FIT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FIT Share Price ÷ EPS (both in USD)

= 4.46 ÷ -0.74

-6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fitbit is loss making, we can't compare its value to the US Electronic industry average.
  • Fitbit is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Fitbit's expected growth come at a high price?
Raw Data
NYSE:FIT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
26.8%per year
United States of America Electronic Industry PEG Ratio Median Figure of 59 Publicly-Listed Electronic Companies 1.23x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Fitbit, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fitbit's assets?
Raw Data
NYSE:FIT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $2.64
NYSE:FIT Share Price * NYSE (2019-06-14) in USD $4.46
United States of America Electronic Industry PB Ratio Median Figure of 140 Publicly-Listed Electronic Companies 1.98x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:FIT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FIT Share Price ÷ Book Value per Share (both in USD)

= 4.46 ÷ 2.64

1.69x

* Primary Listing of Fitbit.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fitbit is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Fitbit's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Fitbit has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FIT Future Performance

 How is Fitbit expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fitbit expected to grow at an attractive rate?
  • Unable to compare Fitbit's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Fitbit's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Fitbit's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FIT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FIT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 26.8%
NYSE:FIT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FIT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FIT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,769 137 -41 1
2022-12-31 1,717 113 -61 1
2021-12-31 1,605 99 -77 3
2020-12-31 1,613 54 -117 10
2019-12-31 1,558 -11 -137 10
NYSE:FIT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 1,536 35 -184
2018-12-31 1,512 113 -186
2018-09-29 1,512 57 -247
2018-06-30 1,510 4 -358
2018-03-31 1,564 25 -298
2017-12-31 1,616 64 -277
2017-09-30 1,619 82 -378
2017-07-01 1,730 18 -238
2017-04-01 1,963 44 -174
2016-12-31 2,169 139 -103
2016-10-01 2,307 49 99
2016-07-02 2,213 229 119
2016-04-02 2,027 220 113

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 2.7% 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.
Raw Data
NYSE:FIT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Fitbit Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FIT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 -0.15 -0.15 -0.15 1.00
2022-12-31 -0.23 -0.23 -0.23 1.00
2021-12-31 -0.29 -0.27 -0.30 2.00
2020-12-31 -0.37 -0.25 -0.59 4.00
2019-12-31 -0.53 -0.46 -0.62 4.00
NYSE:FIT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 -0.74
2018-12-31 -0.76
2018-09-29 -1.02
2018-06-30 -1.50
2018-03-31 -1.27
2017-12-31 -1.19
2017-09-30 -1.65
2017-07-01 -1.05
2017-04-01 -0.78
2016-12-31 -0.47
2016-10-01 0.46
2016-07-02 0.56
2016-04-02 0.65

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Fitbit will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Fitbit's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fitbit has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FIT Past Performance

  How has Fitbit performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fitbit's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fitbit does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Fitbit's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Fitbit's 1-year growth to the US Electronic industry average as it is not currently profitable.
Earnings and Revenue History
Fitbit's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fitbit Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FIT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 1,536.01 -184.42 447.12 319.87
2018-12-31 1,511.98 -185.83 459.95 332.17
2018-09-29 1,511.54 -246.67 470.89 346.76
2018-06-30 1,510.49 -358.02 497.63 351.09
2018-03-31 1,564.44 -297.99 498.68 344.59
2017-12-31 1,615.52 -277.19 512.46 343.01
2017-09-30 1,618.54 -378.00 590.53 337.53
2017-07-01 1,729.82 -238.47 579.45 336.34
2017-04-01 1,963.05 -173.89 591.18 335.70
2016-12-31 2,169.46 -102.78 613.31 320.19
2016-10-01 2,307.26 98.84 581.67 289.36
2016-07-02 2,212.72 118.56 560.34 249.27
2016-04-02 2,026.60 113.03 500.84 199.86
2015-12-31 1,858.00 114.02 414.63 150.04
2015-09-30 1,516.61 67.20 302.83 114.13
2015-06-30 1,260.21 36.49 242.40 86.19
2015-03-31 973.37 38.68 178.82 67.51
2014-12-31 745.43 28.35 142.16 54.17
2013-12-31 271.09 -51.62 41.33 27.87
2012-12-31 76.37 -4.22 14.21 16.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Fitbit has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Fitbit has efficiently used its assets last year compared to the US Electronic industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Fitbit improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Fitbit's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Fitbit 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.

Full details on the Past part of the Simply Wall St company analysis model.

FIT Health

 How is Fitbit's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fitbit's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fitbit is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fitbit's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fitbit's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 524.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fitbit Company Filings, last reported 2 months ago.

NYSE:FIT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 671.81 130.53 644.20
2018-12-31 735.94 0.00 723.45
2018-09-29 694.72 0.00 623.32
2018-06-30 678.96 0.00 580.46
2018-03-31 762.26 0.00 658.35
2017-12-31 823.96 0.00 679.30
2017-09-30 831.64 0.00 659.23
2017-07-01 925.34 0.00 675.80
2017-04-01 965.57 0.00 726.12
2016-12-31 998.53 0.00 706.01
2016-10-01 1,117.10 0.00 672.10
2016-07-02 1,066.66 0.00 759.68
2016-04-02 1,013.33 0.00 791.71
2015-12-31 981.45 0.00 664.48
2015-09-30 784.17 0.00 575.48
2015-06-30 723.35 0.00 461.28
2015-03-31 235.85 159.61 237.85
2014-12-31 158.87 132.59 195.63
2013-12-31 6.80 10.71 81.73
2012-12-31
  • Fitbit's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (92% vs 0.3% today).
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.

  • Fitbit has sufficient cash runway for more than 3 years based on current free cash flow.
  • Fitbit has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 72% each year.
X
Financial health checks
We assess Fitbit's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fitbit has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FIT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Fitbit dividends. Estimated to be 0% next year.
If you bought $2,000 of Fitbit shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Fitbit's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fitbit's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FIT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FIT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Fitbit has not reported any payouts.
  • Unable to verify if Fitbit's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fitbit's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fitbit has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Fitbit's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Fitbit's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fitbit afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fitbit has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FIT Management

 What is the CEO of Fitbit's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
James Park
COMPENSATION $3,413,904
AGE 42
TENURE AS CEO 11.8 years
CEO Bio

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.

CEO Compensation
  • James's compensation has been consistent with company performance over the past year, both up more than 20%.
  • 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 Fitbit management team in years:

2.5
Average Tenure
56
Average Age
  • The tenure for the Fitbit management team is about average.
Management Team

James Park

TITLE
Co-Founder
COMPENSATION
$3M
AGE
42
TENURE
11.8 yrs

Eric Friedman

TITLE
Co-Founder
COMPENSATION
$1M
AGE
41

Ron Kisling

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
57
TENURE
1 yrs

Jeff Devine

TITLE
Executive Vice President of Operations
COMPENSATION
$1M
AGE
57
TENURE
2.3 yrs

Andy Missan

TITLE
Executive VP
COMPENSATION
$1M
AGE
56
TENURE
6.3 yrs

Thomas Hudson

TITLE
Vice President of Investor Relations
TENURE
2.6 yrs

Tim Rosa

TITLE
Chief Marketing Officer
TENURE
2.4 yrs

Lisa Gross

TITLE
Senior Vice President of People
TENURE
1.4 yrs

Mark Silverio

TITLE
Senior Vice President of Americas Sales
TENURE
2.5 yrs

Des Power

TITLE
Senior VP & MD of International
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Fitbit board of directors in years:

3
Average Tenure
50.5
Average Age
  • The tenure for the Fitbit board of directors is about average.
Board of Directors

Eric Friedman

TITLE
Co-Founder
COMPENSATION
$1M
AGE
41
TENURE
12.3 yrs

Chris Paisley

TITLE
Director
COMPENSATION
$262K
AGE
65
TENURE
4.4 yrs

James Park

TITLE
Co-Founder
COMPENSATION
$3M
AGE
42
TENURE
4.1 yrs

Brad Fluegel

TITLE
Director
COMPENSATION
$289K
AGE
56
TENURE
1.3 yrs

Steve Murray

TITLE
Lead Independent Director
COMPENSATION
$270K
AGE
50

Laura Alber

TITLE
Director
COMPENSATION
$236K
AGE
49
TENURE
3 yrs

Glenda Flanagan

TITLE
Director
COMPENSATION
$245K
AGE
64
TENURE
3 yrs

Matt Bromberg

TITLE
Director
COMPENSATION
$260K
AGE
51
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Nov 18 Sell SoftBank Capital Company 06. Nov 18 06. Nov 18 -1,000,000 $6.19 $-6,190,000
29. Aug 18 Sell SoftBank Capital Company 27. Aug 18 27. Aug 18 -1,000,000 $6.22 $-6,220,000
X
Management checks
We assess Fitbit's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fitbit has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FIT News

Simply Wall St News

Did Changing Sentiment Drive Fitbit's (NYSE:FIT) Share Price Down A Worrying 68%?

And over the last year the share price fell 28%, so we doubt many shareholders are delighted. … Check out our latest analysis for Fitbit Because Fitbit is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … So it makes a lot of sense to check out what analysts think Fitbit will earn in the future (free analyst consensus estimates) A Different Perspective Fitbit shareholders are down 28% for the year, falling short of the market return.

Simply Wall St -

Calculating The Fair Value Of Fitbit, Inc. (NYSE:FIT)

Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … We assume companies with shrinking free cash flow are will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $-63.09 $-42.63 $49.19 $62.53 $84.91 $103.65 $120.51 $135.23 $147.89 $158.80 Growth Rate Estimate Source Analyst x4 Analyst x3 Analyst x1 Analyst x1 Analyst x1 Est @ 22.08% Est @ 16.27% Est @ 12.21% Est @ 9.37% Est @ 7.37% Present Value ($, Millions) Discounted @ 9.27% $-57.73 $-35.70 $37.71 $43.86 $54.50 $60.89 $64.79 $66.53 $66.59 $65.44 Present Value of 10-year Cash Flow (PVCF)= $366.88m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage.

Simply Wall St -

How Much Of Fitbit, Inc. (NYSE:FIT) Do Insiders Own?

Generally speaking, as a company grows, institutions will increase their ownership. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

What Are Analysts Saying About Fitbit, Inc.'s (NYSE:FIT) Earnings Trend?

The latest earnings release Fitbit, Inc.'s (NYSE:FIT) announced in December 2018 … company earnings became less negative compared to the previous year's level

Simply Wall St -

Does Fitbit, Inc. (NYSE:FIT) Have A Volatile Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Fitbit, Inc.'s (NYSE:FIT) Most Important Factor To Consider

I will take you through Fitbit’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Fitbit has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … The two ways to assess whether Fitbit’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Is Fitbit, Inc.'s (NYSE:FIT) CEO Paid At A Competitive Rate?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Fitbit … How Does James Park's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Fitbit, Inc.'s (NYSE:FIT) Balance Sheet A Threat To Its Future?

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is FIT growing fast enough to value financial flexibility over lower cost of capital … Debt funding can be cheaper than issuing new equity due to lower interest cost on debt.

Simply Wall St -

How Much Of Fitbit, Inc. (NYSE:FIT) Do Insiders Own?

With a market capitalization of US$1.2b, Fitbit is a decent size, so it is probably on the radar of institutional investors. … Our analysis of the ownership of the company, below, shows that. … We can zoom in on the different ownership groups, to learn more about FIT

Simply Wall St -

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.

Simply Wall St -

FIT Company Info

Description

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.

Details
Name: Fitbit, Inc.
FIT
Exchange: NYSE
Founded: 2007
$1,137,317,451
255,003,913
Website: http://www.fitbit.com
Address: Fitbit, Inc.
199 Fremont Street,
14th Floor,
San Francisco,
California, 94105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FIT Class A Common Stock New York Stock Exchange US USD 18. Jun 2015
DB 5FB Class A Common Stock Deutsche Boerse AG DE EUR 18. Jun 2015
LSE 0IPC Class A Common Stock London Stock Exchange GB USD 18. Jun 2015
Number of employees
Current staff
Staff numbers
1,638
Fitbit employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 01:04
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.