WARBY PARKER INC-CLASS A (WRBY) Stock Fundamental Analysis
NYSE:WRBY - New York Stock Exchange, Inc. - US93403J1060 - Common Stock - Currency: USD
Taking everything into account, WRBY scores 4 out of 10 in our fundamental rating. WRBY was compared to 121 industry peers in the Specialty Retail industry. WRBY has a great financial health rating, but its profitability evaluates not so good. While showing a medium growth rate, WRBY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WRBY had positive earnings in the past year.
WRBY had a positive operating cash flow in the past year.
WRBY had negative earnings in each of the past 5 years.
Of the past 5 years WRBY 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.09%, WRBY is doing worse than 65.29% of the companies in the same industry.
WRBY has a Return On Equity (-4.02%) which is comparable to the rest of the industry.
| 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
The Gross Margin of WRBY (55.26%) is better than 83.47% of its industry peers.
WRBY's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for WRBY so they could not be analyzed.
| 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.
The number of shares outstanding for WRBY has been increased compared to 1 year ago.
The number of shares outstanding for WRBY has been increased compared to 5 years ago.
There is no outstanding debt for WRBY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
WRBY has an Altman-Z score of 4.46. This indicates that WRBY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.46, WRBY belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
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 | 4.46 |
ROIC/WACCN/A
WACC9.81%
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.
WRBY has a better Current ratio (2.70) than 90.08% of its industry peers.
A Quick Ratio of 2.30 indicates that WRBY has no problem at all paying its short term obligations.
The Quick ratio of WRBY (2.30) is better than 93.39% 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
Based on estimates for the next years, WRBY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.00% on average per year.
Based on estimates for the next years, WRBY will show a quite strong growth in Revenue. The Revenue will grow by 13.81% on average per year.
EPS Next Y20.05%
EPS Next 2Y29.28%
EPS Next 3Y31%
EPS Next 5YN/A
Revenue Next Year14.12%
Revenue Next 2Y13.92%
Revenue Next 3Y13.94%
Revenue Next 5Y13.81%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 71.57 indicates a quite expensive valuation of WRBY.
Compared to the rest of the industry, the Price/Earnings ratio of WRBY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.03. WRBY is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 46.12, the valuation of WRBY can be described as expensive.
WRBY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, WRBY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.57 | ||
| Fwd PE | 46.12 |
4.2 Price Multiples
71.90% of the companies in the same industry are cheaper than WRBY, based on the Enterprise Value to EBITDA ratio.
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 | 57.35 | ||
| EV/EBITDA | 86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WRBY's earnings are expected to grow with 31.00% in the coming years.
PEG (NY)3.57
PEG (5Y)N/A
EPS Next 2Y29.28%
EPS Next 3Y31%
5. Dividend
5.1 Amount
WRBY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.04
-0.3 (-1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98%
Inst Owner Change-2.15%
Ins Owners7.08%
Ins Owner Change1.95%
Market Cap2.43B
Analysts74.55
Price Target23.53 (17.42%)
Short Float %9.16%
Short Ratio3.19
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)-15.67%
PT rev (3m)-5.68%
EPS NQ rev (1m)-14.03%
EPS NQ rev (3m)-9.46%
EPS NY rev (1m)-9.05%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)-3.96%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.57 | ||
| Fwd PE | 46.12 | ||
| P/S | 3.06 | ||
| P/FCF | 57.35 | ||
| P/OCF | 22.49 | ||
| P/B | 6.87 | ||
| P/tB | 6.87 | ||
| EV/EBITDA | 86 |
EPS(TTM)0.28
EY1.4%
EPS(NY)0.43
Fwd EY2.17%
FCF(TTM)0.35
FCFY1.74%
OCF(TTM)0.89
OCFY4.45%
SpS6.55
BVpS2.92
TBVpS2.92
PEG (NY)3.57
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 | 4.46 |
F-Score6
WACC9.81%
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 Y20.05%
EPS Next 2Y29.28%
EPS Next 3Y31%
EPS Next 5YN/A
Revenue 1Y (TTM)13.95%
Revenue growth 3Y12.56%
Revenue growth 5Y15.79%
Sales Q2Q%11.89%
Revenue Next Year14.12%
Revenue Next 2Y13.92%
Revenue Next 3Y13.94%
Revenue Next 5Y13.81%
EBIT growth 1Y65.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year770.16%
EBIT Next 3Y136.05%
EBIT Next 5Y79.97%
FCF growth 1Y255.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y269.07%
OCF growth 3YN/A
OCF growth 5Y35.79%