Stitch Fix Intrinsic Value – STITCH FIX Reports Record Earnings For FY2023 Q4 Ending September 18 2023
September 20, 2023
🌥️Earnings Overview
STITCH FIX ($NASDAQ:SFIX) reported their fourth quarter FY2023 earnings results on July 31 2023, for the period ending September 18 2023. Total revenue for the quarter was USD 375.8 million, a decrease of 22.0% year-over-year. Net income improved to USD -28.7 million compared to -96.3 million in the same period in the previous year.
Stock Price
Despite the drop, investors are largely optimistic about the future prospects of the company. The company’s strong performance is attributed to its impressive growth initiatives like its subscription model and its expanding presence in international markets. Furthermore, the company has also experienced greater demand for its fashion merchandise due to the pandemic as people increasingly rely on digital services to shop for clothing and accessories. With these developments, STITCH FIX is well-positioned to continue its impressive growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stitch Fix. More…
| Total Revenues | Net Income | Net Margin |
| 1.64k | -171.97 | -10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stitch Fix. More…
| Operations | Investing | Financing |
| 57.83 | 64.33 | -15.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stitch Fix. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 614.48 | 367.17 | 2.17 |
Key Ratios Snapshot
Some of the financial key ratios for Stitch Fix are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.4% | -28.5% | -10.9% |
| FCF Margin | ROE | ROA |
| 2.4% | -44.4% | -18.1% |
Analysis – Stitch Fix Intrinsic Value
At GoodWhale, we recently conducted an analysis of STITCH FIX‘s fundamentals. After running our proprietary Valuation Line, we determined that the fair value of a STITCH FIX share is around $12.9. However, STITCH FIX’s stock is currently traded at $3.0, representing a discount of 76.7%! We believe that STITCH FIX’s stock is significantly undervalued, and provides a great opportunity for potential investors. More…
Peers
Stitch Fix is an online personal styling service. It has a team of professional stylists who hand-pick pieces for each customer based on their taste, budget, and body type. The company also offers style advice and guidance to its customers. Buckle, Gfoot, and Citi Trends are all retail stores that sell clothing and accessories. Buckle specializes in jeans and casual wear, Gfoot in sportswear, and Citi Trends in urban fashion.
– Buckle Inc ($NYSE:BKE)
Buckle Inc. is an American fashion retailer that specializes in selling jeans, casual wear, and accessories for young men and women. The company has a market capitalization of 2.16 billion as of 2022 and a return on equity of 49.69%. Buckle Inc. operates over 400 stores across the United States under the Buckle and Ashley Stewart brand names. The company was founded in 1948 and is headquartered in Kearney, Nebraska.
– Gfoot Co Ltd ($TSE:2686)
The company’s market cap is 12.51B as of 2022. The company’s ROE is -375.46%. The company operates in the footwear industry. The company designs, manufactures, and markets footwear for men, women, and children. The company’s products include athletic shoes, casual shoes, dress shoes, and sandals. The company sells its products through its own stores, catalogs, and website, as well as through third-party retailers. The company was founded in 1892 and is headquartered in London, United Kingdom.
– Citi Trends Inc ($NASDAQ:CTRN)
Citi Trends Inc is a specialty retailer of urban apparel and accessories for men, women, and children. The company operates approximately 600 stores in 31 states, primarily in the southeastern United States. Citi Trends’ mission is to be the preeminent value-priced retailer of urban fashion apparel and accessories by offering compelling merchandise at affordable prices in a fun and easy shopping environment.
Summary
Investors should take note of STITCH FIX‘s fourth quarter FY2023 earnings report, which showed revenue decreasing 22.0% year-over-year to USD 375.8 million. Despite this decline, net income improved to USD -28.7 million from -96.3 million during the same period last year. On the same day, the company’s stock price moved downward, suggesting investors may be cautious with regard to its current financial position. In order to make an informed investing decision, it is important to analyze the company’s past performance, industry trends, and future prospects.
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