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 5 out of 10 in our fundamental rating. WRBY was compared to 121 industry peers in the Specialty Retail industry. While WRBY has a great health rating, its profitability is only average at the moment. 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.
In the past year WRBY had a positive cash flow from operations.
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 -3.01%, WRBY is doing worse than 67.77% of the companies in the same industry.
WRBY has a Return On Equity (-6.00%) which is in line with its industry peers.
WRBY's Return On Invested Capital of 35.86% is amongst the best of the industry. WRBY outperforms 98.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.01% | ||
| ROE | -6% | ||
| ROIC | 35.86% |
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 Operating Margin (32.14%) than 98.35% of its industry peers.
WRBY's Gross Margin of 55.34% is amongst the best of the industry. WRBY outperforms 84.30% of its industry peers.
In the last couple of years the Gross Margin of WRBY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.14% | ||
| PM (TTM) | N/A | ||
| GM | 55.34% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WRBY is creating value.
Compared to 1 year ago, WRBY has more shares outstanding
WRBY has more shares outstanding than it did 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 4.29. This indicates that WRBY is financially healthy and has little risk of bankruptcy at the moment.
WRBY's Altman-Z score of 4.29 is amongst the best of the industry. WRBY outperforms 87.60% 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 | 4.29 |
ROIC/WACC3.87
WACC9.26%
2.3 Liquidity
WRBY has a Current Ratio of 2.50. This indicates that WRBY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.50, WRBY belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that WRBY has no problem at all paying its short term obligations.
WRBY has a better Quick ratio (2.10) than 91.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
WRBY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.00%, which is quite impressive.
Looking at the last year, WRBY shows a quite strong growth in Revenue. The Revenue has grown by 15.16% in the last year.
Measured over the past years, WRBY shows a quite strong growth in Revenue. The Revenue has been growing by 15.79% on average per year.
EPS 1Y (TTM)160%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)15.16%
Revenue growth 3Y12.56%
Revenue growth 5Y15.79%
Sales Q2Q%17.79%
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 39.37% 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 Y31.99%
EPS Next 2Y35.16%
EPS Next 3Y39.37%
EPS Next 5YN/A
Revenue Next Year15.45%
Revenue Next 2Y14.59%
Revenue Next 3Y15.36%
Revenue Next 5Y13.81%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WRBY is valuated quite expensively with a Price/Earnings ratio of 55.31.
WRBY's Price/Earnings is on the same level as the industry average.
WRBY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.33.
With a Price/Forward Earnings ratio of 41.90, WRBY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as WRBY.
WRBY is valuated expensively when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.31 | ||
| Fwd PE | 41.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRBY is valued cheaper than 80.17% of the companies in the same industry.
WRBY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.07 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WRBY's earnings are expected to grow with 39.37% in the coming years.
PEG (NY)1.73
PEG (5Y)N/A
EPS Next 2Y35.16%
EPS Next 3Y39.37%
5. Dividend
5.1 Amount
No dividends for WRBY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.38
+0.38 (+2.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98%
Inst Owner Change-7.26%
Ins Owners7.08%
Ins Owner Change1.95%
Market Cap1.74B
Analysts74.55
Price Target27.9 (94.02%)
Short Float %9.86%
Short Ratio5.04
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)0
Avg EPS beat(2)-16.78%
Min EPS beat(2)-27.05%
Max EPS beat(2)-6.5%
EPS beat(4)2
Avg EPS beat(4)19.28%
Min EPS beat(4)-27.05%
Max EPS beat(4)58.59%
EPS beat(8)5
Avg EPS beat(8)-6.08%
EPS beat(12)7
Avg EPS beat(12)20.44%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.32%
PT rev (3m)20.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.61%
EPS NY rev (1m)1.22%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.31 | ||
| Fwd PE | 41.9 | ||
| P/S | 2.25 | ||
| P/FCF | 50.07 | ||
| P/OCF | 17.6 | ||
| P/B | 5.11 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 4.89 |
EPS(TTM)0.26
EY1.81%
EPS(NY)0.34
Fwd EY2.39%
FCF(TTM)0.29
FCFY2%
OCF(TTM)0.82
OCFY5.68%
SpS6.38
BVpS2.81
TBVpS2.81
PEG (NY)1.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.01% | ||
| ROE | -6% | ||
| ROCE | 45.39% | ||
| ROIC | 35.86% | ||
| ROICexc | 67.07% | ||
| ROICexgc | 67.07% | ||
| OM | 32.14% | ||
| PM (TTM) | N/A | ||
| GM | 55.34% | ||
| FCFM | 4.5% |
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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 139.61% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 1007.67 | ||
| Cash Conversion | 33.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 4.29 |
F-Score6
WACC9.26%
ROIC/WACC3.87
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)160%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y31.99%
EPS Next 2Y35.16%
EPS Next 3Y39.37%
EPS Next 5YN/A
Revenue 1Y (TTM)15.16%
Revenue growth 3Y12.56%
Revenue growth 5Y15.79%
Sales Q2Q%17.79%
Revenue Next Year15.45%
Revenue Next 2Y14.59%
Revenue Next 3Y15.36%
Revenue Next 5Y13.81%
EBIT growth 1Y444.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year770.16%
EBIT Next 3Y136.05%
EBIT Next 5Y79.97%
FCF growth 1Y374.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.9%
OCF growth 3YN/A
OCF growth 5Y35.79%