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WARBY PARKER INC-CLASS A (WRBY) Stock Fundamental Analysis

NYSE:WRBY - New York Stock Exchange, Inc. - US93403J1060 - Common Stock

24.58  -1.64 (-6.25%)

After market: 24.55 -0.03 (-0.12%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WRBY. WRBY was compared to 119 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.


Dividend Valuation Growth Profitability Health

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2

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.
In the past 5 years WRBY always reported negative net income.
WRBY had a positive operating cash flow in 4 of the past 5 years.
WRBY Yearly Net Income VS EBIT VS OCF VS FCFWRBY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 50M -50M -100M -150M

1.2 Ratios

WRBY has a worse Return On Assets (-5.10%) than 67.24% of its industry peers.
Looking at the Return On Equity, with a value of -9.67%, WRBY is in line with its industry, outperforming 42.24% of the companies in the same industry.
Industry RankSector Rank
ROA -5.1%
ROE -9.67%
ROIC N/A
ROA(3y)-22.01%
ROA(5y)-22.26%
ROE(3y)-38.17%
ROE(5y)-42.19%
ROIC(3y)N/A
ROIC(5y)N/A
WRBY Yearly ROA, ROE, ROICWRBY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 -20 -40 -60

1.3 Margins

Looking at the Gross Margin, with a value of 55.32%, WRBY belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 55.32%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.54%
GM growth 5Y-1.96%
WRBY Yearly Profit, Operating, Gross MarginsWRBY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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8

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.
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.
WRBY Yearly Shares OutstandingWRBY Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
WRBY Yearly Total Debt VS Total AssetsWRBY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

2.2 Solvency

WRBY has an Altman-Z score of 5.70. This indicates that WRBY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.70, WRBY belongs to the best of the industry, outperforming 88.79% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.7
ROIC/WACCN/A
WACC10.23%
WRBY Yearly LT Debt VS Equity VS FCFWRBY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.47 indicates that WRBY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.47, WRBY belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
A Quick Ratio of 2.06 indicates that WRBY has no problem at all paying its short term obligations.
WRBY's Quick ratio of 2.06 is amongst the best of the industry. WRBY outperforms 88.79% of its industry peers.
Industry RankSector Rank
Current Ratio 2.47
Quick Ratio 2.06
WRBY Yearly Current Assets VS Current LiabilitesWRBY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 101.75% over the past year.
The Revenue has grown by 13.47% in the past year. This is quite good.
The Revenue has been growing by 19.67% on average over the past years. This is quite good.
EPS 1Y (TTM)101.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)13.47%
Revenue growth 3Y19.38%
Revenue growth 5Y19.67%
Sales Q2Q%13.3%

3.2 Future

WRBY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.04% yearly.
WRBY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.90% yearly.
EPS Next Y173.16%
EPS Next 2Y80.14%
EPS Next 3Y53.04%
EPS Next 5YN/A
Revenue Next Year14.77%
Revenue Next 2Y13.93%
Revenue Next 3Y13.52%
Revenue Next 5Y13.9%

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.
WRBY Yearly Revenue VS EstimatesWRBY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B
WRBY Yearly EPS VS EstimatesWRBY Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 -0.5 -1

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 106.87, which means the current valuation is very expensive for WRBY.
WRBY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WRBY to the average of the S&P500 Index (27.94), we can say WRBY is valued expensively.
With a Price/Forward Earnings ratio of 75.75, WRBY can be considered very expensive at the moment.
65.52% of the companies in the same industry are cheaper than WRBY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, WRBY is valued quite expensively.
Industry RankSector Rank
PE 106.87
Fwd PE 75.75
WRBY Price Earnings VS Forward Price EarningsWRBY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

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 71.55% 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 RankSector Rank
P/FCF 90.7
EV/EBITDA 1648.55
WRBY Per share dataWRBY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

WRBY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WRBY's earnings are expected to grow with 53.04% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y80.14%
EPS Next 3Y53.04%

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0

5. Dividend

5.1 Amount

WRBY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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WARBY PARKER INC-CLASS A

NYSE:WRBY (1/17/2025, 8:04:00 PM)

After market: 24.55 -0.03 (-0.12%)

24.58

-1.64 (-6.25%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)N/A N/A
Inst Owners96.69%
Inst Owner Change0.01%
Ins Owners7.14%
Ins Owner Change1.09%
Market Cap2.96B
Analysts78.1
Price Target23.07 (-6.14%)
Short Float %11.85%
Short Ratio6.46
Dividend
Industry RankSector 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)22.79%
Min EPS beat(2)-6.5%
Max EPS beat(2)52.09%
EPS beat(4)2
Avg EPS beat(4)-31.33%
Min EPS beat(4)-229.51%
Max EPS beat(4)58.59%
EPS beat(8)6
Avg EPS beat(8)78.85%
EPS beat(12)8
Avg EPS beat(12)23.78%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-0.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.52%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.69%
PT rev (3m)33.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)117.17%
EPS NY rev (1m)0%
EPS NY rev (3m)8.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.85%
Valuation
Industry RankSector Rank
PE 106.87
Fwd PE 75.75
P/S 3.98
P/FCF 90.7
P/OCF 31.98
P/B 8.78
P/tB 8.78
EV/EBITDA 1648.55
EPS(TTM)0.23
EY0.94%
EPS(NY)0.32
Fwd EY1.32%
FCF(TTM)0.27
FCFY1.1%
OCF(TTM)0.77
OCFY3.13%
SpS6.17
BVpS2.8
TBVpS2.8
PEG (NY)0.62
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.1%
ROE -9.67%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 55.32%
FCFM 4.39%
ROA(3y)-22.01%
ROA(5y)-22.26%
ROE(3y)-38.17%
ROE(5y)-42.19%
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-2.54%
GM growth 5Y-1.96%
F-Score7
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 136.38%
Cap/Sales 8.06%
Interest Coverage N/A
Cash Conversion 5632.95%
Profit Quality N/A
Current Ratio 2.47
Quick Ratio 2.06
Altman-Z 5.7
F-Score7
WACC10.23%
ROIC/WACCN/A
Cap/Depr(3y)183.3%
Cap/Depr(5y)176.77%
Cap/Sales(3y)9.02%
Cap/Sales(5y)8.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)101.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y173.16%
EPS Next 2Y80.14%
EPS Next 3Y53.04%
EPS Next 5YN/A
Revenue 1Y (TTM)13.47%
Revenue growth 3Y19.38%
Revenue growth 5Y19.67%
Sales Q2Q%13.3%
Revenue Next Year14.77%
Revenue Next 2Y13.93%
Revenue Next 3Y13.52%
Revenue Next 5Y13.9%
EBIT growth 1Y41.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year208.91%
EBIT Next 3Y55.96%
EBIT Next 5Y39.72%
FCF growth 1Y130.83%
FCF growth 3Y-16.76%
FCF growth 5YN/A
OCF growth 1Y304.09%
OCF growth 3Y23.02%
OCF growth 5YN/A