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 121 industry peers in the Specialty Retail industry. WRBY has a great financial health rating, but its profitability evaluates not so good. WRBY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WRBY had positive earnings in the past year.
In the past year WRBY had a positive cash flow from operations.
In the past 5 years WRBY always reported negative net income.
Of the past 5 years WRBY 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.09%, WRBY is not doing good in the industry: 62.81% of the companies in the same industry are doing better.
WRBY has a Return On Equity of -4.02%. This is comparable to the rest of the industry: WRBY outperforms 46.28% 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 better Gross Margin (55.26%) than 83.47% 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.
The number of shares outstanding for WRBY has been increased compared to 1 year ago.
WRBY has more shares outstanding than it did 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 4.91. This indicates that WRBY is financially healthy and has little risk of bankruptcy at the moment.
WRBY's Altman-Z score of 4.91 is amongst the best of the industry. WRBY outperforms 86.78% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.91 |
ROIC/WACCN/A
WACC9.61%
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 Current ratio of 2.70. This is amongst the best in the industry. WRBY outperforms 91.74% of its industry peers.
A Quick Ratio of 2.30 indicates that WRBY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.30, WRBY belongs to the best of the industry, outperforming 92.56% of the companies in the same industry.
| 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 31.00% on average over the next years. This is a very strong growth
Based on estimates for the next years, WRBY will show a quite strong growth in Revenue. The Revenue will grow by 12.18% on average per year.
EPS Next Y20.05%
EPS Next 2Y29.28%
EPS Next 3Y31%
EPS Next 5YN/A
Revenue Next Year14.31%
Revenue Next 2Y14.09%
Revenue Next 3Y14.91%
Revenue Next 5Y12.18%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 77.79, the valuation of WRBY can be described as expensive.
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 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 50.12, the valuation of WRBY can be described as expensive.
Based on the Price/Forward Earnings ratio, WRBY is valued a bit more expensive than the industry average as 66.12% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, WRBY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.79 | ||
| Fwd PE | 50.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRBY is valued a bit more expensive than 70.25% of the companies 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 | 62.33 | ||
| EV/EBITDA | 95.73 |
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.
WRBY's earnings are expected to grow with 31.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.88
PEG (5Y)N/A
EPS Next 2Y29.28%
EPS Next 3Y31%
5. Dividend
5.1 Amount
No dividends for WRBY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.78
-0.28 (-1.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.25%
Inst Owner Change-2.06%
Ins Owners7.4%
Ins Owner Change3.99%
Market Cap2.64B
Analysts77.27
Price Target22.59 (3.72%)
Short Float %9.64%
Short Ratio3.22
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)-4.02%
PT rev (3m)-17.99%
EPS NQ rev (1m)-10.45%
EPS NQ rev (3m)-15.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.94%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.79 | ||
| Fwd PE | 50.12 | ||
| P/S | 3.33 | ||
| P/FCF | 62.33 | ||
| P/OCF | 24.45 | ||
| P/B | 7.47 | ||
| P/tB | 7.47 | ||
| EV/EBITDA | 95.73 |
EPS(TTM)0.28
EY1.29%
EPS(NY)0.43
Fwd EY2%
FCF(TTM)0.35
FCFY1.6%
OCF(TTM)0.89
OCFY4.09%
SpS6.55
BVpS2.92
TBVpS2.92
PEG (NY)3.88
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 | 4.91 |
F-Score6
WACC9.61%
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 Year14.31%
Revenue Next 2Y14.09%
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%