Is Stitch Fix Stock a Good Investment?
Stitch Fix Investment Advice | SFIX |
- Examine Stitch Fix's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Stitch Fix's leadership team and their track record. Good management can help Stitch Fix navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Specialty Retail space and any emerging trends that could impact Stitch Fix's business and its evolving consumer preferences.
- Compare Stitch Fix's performance and market position to its competitors. Analyze how Stitch Fix is positioned in terms of product offerings, innovation, and market share.
- Check if Stitch Fix pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Stitch Fix's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Stitch Fix stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Stitch Fix is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Weak | Details | |
Volatility | Very risky | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Stitch Fix Stock
Researching Stitch Fix's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are owned by institutional investors. The book value of Stitch Fix was at this time reported as 1.5. The company recorded a loss per share of 0.99. Stitch Fix had not issued any dividends in recent years.
To determine if Stitch Fix is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Stitch Fix's research are outlined below:
| Stitch Fix had very high historical volatility over the last 90 days | |
| The company reported the previous year's revenue of 1.34 B. Net Loss for the year was (118.89 M) with profit before overhead, payroll, taxes, and interest of 692.07 M. | |
| Stitch Fix has a strong financial position based on the latest SEC filings | |
| Over 87.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Stitch Fix Announces Date for First Quarter 2025 Financial Results and Conference Call |
Stitch Fix uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Stitch Fix. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Stitch Fix's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 5th of March 2024 Upcoming Quarterly Report | View | |
| 4th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 16th of September 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of July 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Stitch Fix's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Stitch Fix's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-12-20 | 2017-10-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2023-09-18 | 2023-07-31 | -0.21 | -0.24 | -0.03 | 14 | ||
2019-10-01 | 2019-07-31 | 0.04 | 0.07 | 0.03 | 75 | ||
2018-03-12 | 2018-01-31 | 0.06 | 0.02 | -0.04 | 66 | ||
2020-03-09 | 2020-01-31 | 0.06 | 0.11 | 0.05 | 83 | ||
2019-12-09 | 2019-10-31 | -0.06 | -0.0018 | 0.0582 | 97 | ||
2018-06-07 | 2018-04-30 | 0.03 | 0.09 | 0.06 | 200 | ||
2024-06-04 | 2024-04-30 | -0.25 | -0.18 | 0.07 | 28 |
Know Stitch Fix's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Stitch Fix is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Stitch Fix backward and forwards among themselves. Stitch Fix's institutional investor refers to the entity that pools money to purchase Stitch Fix's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2.2 M | Fund 1 Investments Llc | 2024-06-30 | 1.9 M | Nuveen Asset Management, Llc | 2024-06-30 | 1.7 M | State Street Corp | 2024-06-30 | 1.7 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.5 M | D. E. Shaw & Co Lp | 2024-06-30 | 1.3 M | Coatue Management Llc | 2024-06-30 | 790.2 K | Northern Trust Corp | 2024-09-30 | 760.8 K | Verition Fund Managegment, Llc | 2024-06-30 | 708.3 K | Disciplined Growth Investors Inc | 2024-09-30 | 13.7 M | Working Capital Advisors (uk) Ltd. | 2024-09-30 | 12 M |
Stitch Fix's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 492.15 M.Market Cap |
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Stitch Fix's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.26) | (0.01) | |
| Return On Capital Employed | (0.42) | (0.11) | |
| Return On Assets | (0.26) | (0.01) | |
| Return On Equity | (0.69) | (0.02) |
Determining Stitch Fix's profitability involves analyzing its financial statements and using various financial metrics to determine if Stitch Fix is a good buy. For example, gross profit margin measures Stitch Fix's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Stitch Fix's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Stitch Fix's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Stitch Fix. Check Stitch Fix's Beneish M Score to see the likelihood of Stitch Fix's management manipulating its earnings.
Evaluate Stitch Fix's management efficiency
Stitch Fix has return on total asset (ROA) of (0.0942) % which means that it has lost $0.0942 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.5474) %, meaning that it created substantial loss on money invested by shareholders. Stitch Fix's management efficiency ratios could be used to measure how well Stitch Fix manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to rise to -0.01 in 2024. Return On Capital Employed is likely to rise to -0.11 in 2024. At this time, Stitch Fix's Total Assets are fairly stable compared to the past year. Net Tangible Assets is likely to rise to about 310 M in 2024, whereas Non Currrent Assets Other are likely to drop slightly above 4.6 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.56 | 4.35 | |
| Tangible Book Value Per Share | 1.56 | 4.35 | |
| Enterprise Value Over EBITDA | (5.87) | (171.44) | |
| Price Book Value Ratio | 2.63 | 12.40 | |
| Enterprise Value Multiple | (5.87) | (171.44) | |
| Price Fair Value | 2.63 | 12.40 | |
| Enterprise Value | 446.3 M | 5.7 B |
The operational strategies employed by Stitch Fix management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Beta 1.877 |
Basic technical analysis of Stitch Stock
As of the 21st of November, Stitch Fix has the Coefficient Of Variation of 1903.88, risk adjusted performance of 0.0484, and Semi Deviation of 7.34. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Stitch Fix, as well as the relationship between them.Stitch Fix's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Stitch Fix insiders, such as employees or executives, is commonly permitted as long as it does not rely on Stitch Fix's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Stitch Fix insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Stitch Fix's Outstanding Corporate Bonds
Stitch Fix issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Stitch Fix uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Stitch bonds can be classified according to their maturity, which is the date when Stitch Fix has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View |
Understand Stitch Fix's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Stitch Fix's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0484 | |||
| Market Risk Adjusted Performance | 0.1184 | |||
| Mean Deviation | 3.51 | |||
| Semi Deviation | 7.34 | |||
| Downside Deviation | 7.85 | |||
| Coefficient Of Variation | 1903.88 | |||
| Standard Deviation | 6.37 | |||
| Variance | 40.59 | |||
| Information Ratio | 0.0375 | |||
| Jensen Alpha | 0.0688 | |||
| Total Risk Alpha | (0.40) | |||
| Sortino Ratio | 0.0305 | |||
| Treynor Ratio | 0.1084 | |||
| Maximum Drawdown | 48.51 | |||
| Value At Risk | (5.67) | |||
| Potential Upside | 9.04 | |||
| Downside Variance | 61.66 | |||
| Semi Variance | 53.84 | |||
| Expected Short fall | (3.95) | |||
| Skewness | (3.54) | |||
| Kurtosis | 23.27 |
| Risk Adjusted Performance | 0.0484 | |||
| Market Risk Adjusted Performance | 0.1184 | |||
| Mean Deviation | 3.51 | |||
| Semi Deviation | 7.34 | |||
| Downside Deviation | 7.85 | |||
| Coefficient Of Variation | 1903.88 | |||
| Standard Deviation | 6.37 | |||
| Variance | 40.59 | |||
| Information Ratio | 0.0375 | |||
| Jensen Alpha | 0.0688 | |||
| Total Risk Alpha | (0.40) | |||
| Sortino Ratio | 0.0305 | |||
| Treynor Ratio | 0.1084 | |||
| Maximum Drawdown | 48.51 | |||
| Value At Risk | (5.67) | |||
| Potential Upside | 9.04 | |||
| Downside Variance | 61.66 | |||
| Semi Variance | 53.84 | |||
| Expected Short fall | (3.95) | |||
| Skewness | (3.54) | |||
| Kurtosis | 23.27 |
Consider Stitch Fix's intraday indicators
Stitch Fix intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Stitch Fix stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Stitch Fix Corporate Filings
| 14th of November 2024 Other Reports | ViewVerify | |
| 13th of November 2024 Other Reports | ViewVerify | |
F4 | 30th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 31st of October 2024 Other Reports | ViewVerify |
Stitch Stock media impact
Far too much social signal, news, headlines, and media speculation about Stitch Fix that are available to investors today. That information is available publicly through Stitch media outlets and privately through word of mouth or via Stitch internal channels. However, regardless of the origin, that massive amount of Stitch data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Stitch Fix news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Stitch Fix relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Stitch Fix's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Stitch Fix alpha.
Stitch Fix Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Stitch Fix can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Stitch Fix Historical Investor Sentiment
Investor biases related to Stitch Fix's public news can be used to forecast risks associated with an investment in Stitch. The trend in average sentiment can be used to explain how an investor holding Stitch can time the market purely based on public headlines and social activities around Stitch Fix. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Stitch Fix's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Stitch Fix and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Stitch Fix news discussions. The higher the estimate score, the more favorable the investor's outlook on Stitch Fix.
Stitch Fix Corporate Management
| Eric Colson | Chief Analytics Officer | Profile | |
| Lillian Reaume | Chief Officer | Profile | |
| Debbie Woloshin | Chief Officer | Profile | |
| Elizabeth Spaulding | CEO Director | Profile | |
| David Aufderhaar | Chief Officer | Profile | |
| Tony Bacos | Chief Officer | Profile |
Additional Tools for Stitch Stock Analysis
When running Stitch Fix's price analysis, check to measure Stitch Fix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Stitch Fix is operating at the current time. Most of Stitch Fix's value examination focuses on studying past and present price action to predict the probability of Stitch Fix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Stitch Fix's price. Additionally, you may evaluate how the addition of Stitch Fix to your portfolios can decrease your overall portfolio volatility.