WARBY PARKER INC-CLASS A (WRBY) Stock Fundamental Analysis
NYSE:WRBY - New York Stock Exchange, Inc. - US93403J1060 - Common Stock - Currency: USD
Overall WRBY gets a fundamental rating of 4 out of 10. We evaluated WRBY against 123 industry peers in the Specialty Retail industry. No worries on liquidiy or solvency for WRBY as it has an excellent financial health rating, but there are worries on the profitability. While showing a medium growth rate, WRBY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WRBY was profitable.
WRBY had a positive operating cash flow in the past year.
WRBY had negative earnings in each of the past 5 years.
WRBY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.09%, WRBY is doing worse than 60.98% of the companies in the same industry.
WRBY has a Return On Equity of -4.02%. This is comparable to the rest of the industry: WRBY outperforms 47.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.09% | ||
| ROE | -4.02% | ||
| ROIC | N/A |
ROA(3y)-11.11%
ROA(5y)-16.32%
ROE(3y)-21.82%
ROE(5y)-27.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WRBY has a Gross Margin of 55.26%. This is amongst the best in the industry. WRBY outperforms 83.74% of its industry peers.
In the last couple of years the Gross Margin of WRBY has declined.
WRBY does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 55.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.97%
GM growth 5Y-1.68%
2. Health
2.1 Basic Checks
WRBY does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, WRBY has more shares outstanding
The number of shares outstanding for WRBY has been increased compared to 5 years ago.
WRBY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WRBY has an Altman-Z score of 5.42. This indicates that WRBY is financially healthy and has little risk of bankruptcy at the moment.
WRBY has a Altman-Z score of 5.42. This is amongst the best in the industry. WRBY outperforms 88.62% of its industry peers.
WRBY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.42 |
ROIC/WACCN/A
WACC8.86%
2.3 Liquidity
WRBY has a Current Ratio of 2.70. This indicates that WRBY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WRBY (2.70) is better than 91.06% of its industry peers.
A Quick Ratio of 2.30 indicates that WRBY has no problem at all paying its short term obligations.
WRBY has a Quick ratio of 2.30. This is amongst the best in the industry. WRBY outperforms 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
WRBY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.33%, which is quite impressive.
WRBY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.95%.
WRBY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.79% yearly.
EPS 1Y (TTM)89.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.82%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y12.56%
Revenue growth 5Y15.79%
Sales Q2Q%11.89%
3.2 Future
The Earnings Per Share is expected to grow by 37.49% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.18% on average over the next years. This is quite good.
EPS Next Y26.09%
EPS Next 2Y29.7%
EPS Next 3Y37.49%
EPS Next 5YN/A
Revenue Next Year14.24%
Revenue Next 2Y14.2%
Revenue Next 3Y14.91%
Revenue Next 5Y12.18%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
WRBY is valuated quite expensively with a Price/Earnings ratio of 86.79.
The rest of the industry has a similar Price/Earnings ratio as WRBY.
WRBY is valuated expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 55.56, which means the current valuation is very expensive for WRBY.
WRBY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, WRBY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.79 | ||
| Fwd PE | 55.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WRBY indicates a slightly more expensive valuation: WRBY is more expensive than 69.11% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WRBY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.54 | ||
| EV/EBITDA | 106.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WRBY does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as WRBY's earnings are expected to grow with 37.49% in the coming years.
PEG (NY)3.33
PEG (5Y)N/A
EPS Next 2Y29.7%
EPS Next 3Y37.49%
5. Dividend
5.1 Amount
WRBY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.3
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.25%
Inst Owner Change1.18%
Ins Owners7.4%
Ins Owner Change3.9%
Market Cap2.95B
Analysts77.27
Price Target22.68 (-6.67%)
Short Float %9.39%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.46%
Min EPS beat(2)-27.05%
Max EPS beat(2)14.13%
EPS beat(4)2
Avg EPS beat(4)8.16%
Min EPS beat(4)-27.05%
Max EPS beat(4)52.09%
EPS beat(8)5
Avg EPS beat(8)-8.15%
EPS beat(12)8
Avg EPS beat(12)53.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)-0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.4%
PT rev (3m)-8.19%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-22.63%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.79 | ||
| Fwd PE | 55.56 | ||
| P/S | 3.71 | ||
| P/FCF | 69.54 | ||
| P/OCF | 27.27 | ||
| P/B | 8.33 | ||
| P/tB | 8.33 | ||
| EV/EBITDA | 106.76 |
EPS(TTM)0.28
EY1.15%
EPS(NY)0.44
Fwd EY1.8%
FCF(TTM)0.35
FCFY1.44%
OCF(TTM)0.89
OCFY3.67%
SpS6.55
BVpS2.92
TBVpS2.92
PEG (NY)3.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.09% | ||
| ROE | -4.02% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 55.26% | ||
| FCFM | 5.34% |
ROA(3y)-11.11%
ROA(5y)-16.32%
ROE(3y)-21.82%
ROE(5y)-27.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.97%
GM growth 5Y-1.68%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 138.58% | ||
| Cap/Sales | 8.27% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 429.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z | 5.42 |
F-Score6
WACC8.86%
ROIC/WACCN/A
Cap/Depr(3y)155.9%
Cap/Depr(5y)159.74%
Cap/Sales(3y)8.79%
Cap/Sales(5y)8.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)89.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.82%
EPS Next Y26.09%
EPS Next 2Y29.7%
EPS Next 3Y37.49%
EPS Next 5YN/A
Revenue 1Y (TTM)13.95%
Revenue growth 3Y12.56%
Revenue growth 5Y15.79%
Sales Q2Q%11.89%
Revenue Next Year14.24%
Revenue Next 2Y14.2%
Revenue Next 3Y14.91%
Revenue Next 5Y12.18%
EBIT growth 1Y65.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year738.49%
EBIT Next 3Y135.35%
EBIT Next 5Y74.1%
FCF growth 1Y255.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y269.07%
OCF growth 3YN/A
OCF growth 5Y35.79%