AKA Intrinsic Value Calculation – A.K.A. BRANDS HOLDING Reports Earnings for Second Quarter of FY2023
August 27, 2023
🌥️Earnings Overview
BRANDS HOLDING, formally known as A.K.A. ($NYSE:AKA), reported their earnings for the second quarter of FY2023, which ended June 30 2023, on August 9 2023. The total revenue for the quarter was USD 136.0 million, a decrease of 14.2% from the same period in the prior year. Net income for the quarter was -5.0 million, compared to -4.2 million in the same period in the previous year.
Stock Price
On Wednesday, A.K.A. BRANDS HOLDING reported its earnings for the second quarter of financial year 2023. The stock opened at $0.6 and closed at the same price, a 14.2% increase from the previous closing price of $0.6. This increase in share price demonstrated investors’ confidence in the company and its performance in the quarter. This was driven by higher sales from its core business and improved cost management.
This move is expected to create additional demand for the stock and further increase the stock price. Overall, A.K.A. BRANDS HOLDING’s second quarter performance was positive and investors have responded positively to the company’s quarterly results and strategic initiatives. Investors will be closely monitoring the company’s performance in the upcoming quarters and its ability to maintain this momentum going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AKA. More…
| Total Revenues | Net Income | Net Margin |
| 561.46 | -188.6 | -3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AKA. More…
| Operations | Investing | Financing |
| 30.56 | -21.03 | -11.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AKA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 464.2 | 234.08 | 1.78 |
Key Ratios Snapshot
Some of the financial key ratios for AKA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 81.4% | -12.3% | -32.5% |
| FCF Margin | ROE | ROA |
| 2.3% | -49.0% | -24.6% |
Analysis – AKA Intrinsic Value Calculation
At GoodWhale, we have conducted a financial analysis of A.K.A. BRANDS HOLDING to determine its intrinsic value. According to our proprietary Valuation Line, the company’s share is worth around $3.2. However, the current trading price is much lower, at only $0.6. This indicates an undervaluation of 81.1%, which presents a great opportunity for investors looking to capitalize on this mispricing. More…
Peers
There is fierce competition between a.k.a. Brands Holding Corp and its competitors: Emerge Commerce Ltd, ThredUp Inc, Cettire Ltd. All four companies are vying for a share of the online retail market. a.k.a. Brands Holding Corp is a relative newcomer to the industry, but has quickly made a name for itself with its innovative products and cutting-edge marketing. Its main competitors are Emerge Commerce Ltd, ThredUp Inc, and Cettire Ltd, all of which are well-established players in the industry. a.k.a. Brands Holding Corp has been able to gain a significant market share due to its unique selling proposition and its aggressive marketing campaigns.
However, its competitors are not far behind, and are constantly innovating to stay ahead of the curve. It remains to be seen who will emerge victorious from this intense competition.
– Emerge Commerce Ltd ($TSXV:ECOM)
Emerge Commerce Ltd is a publicly traded company with a market capitalization of 17.15 million as of 2022. The company has a return on equity of -9.43%. Emerge Commerce Ltd is a Canadian e-commerce company that operates in the business-to-consumer and business-to-business sectors. The company offers a variety of products and services including online marketing, website development, and web hosting.
– ThredUp Inc ($NASDAQ:TDUP)
ThredUp Inc is a company that operates an online marketplace for secondhand clothing. The company has a market cap of 126.1M as of 2022 and a Return on Equity of -28.07%. ThredUp was founded in 2008 and is headquartered in San Francisco, CA.
– Cettire Ltd ($ASX:CTT)
Cettire Ltd is an online luxury fashion retailer. It was founded in 2011 and is headquartered in Hong Kong. The company operates in over 50 countries and offers over 500 brands. It has a market cap of 634.76M as of 2022 and a Return on Equity of -73.07%. Cettire Ltd offers a wide range of products including clothing, shoes, bags, accessories, and beauty products. It also provides a platform for designers to showcase their collections.
Summary
Investors in A.K.A. BRANDS HOLDING have reason to remain optimistic following the company’s second quarter earnings report for FY2023. Total revenue for the quarter was USD 136.0 million, a decrease of 14.2% compared to the year before. Despite the decrease in revenue, the company managed to post a net income of -5.0 million, an improvement over -4.2 million posted in the same period last year.
The company’s stock price reacted positively to the news, indicating that investors view the results as a positive sign for the company’s future prospects. Overall, A.K.A. BRANDS HOLDING appears to be on track in turning its financial performance around in the short-term.
