Is Warby Parker Stock a Good Investment?
Warby Parker Investment Advice | WRBY |
- Examine Warby Parker'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 Warby Parker's leadership team and their track record. Good management can help Warby Parker navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Other Specialty Retail space and any emerging trends that could impact Warby Parker's business and its evolving consumer preferences.
- Compare Warby Parker's performance and market position to its competitors. Analyze how Warby Parker is positioned in terms of product offerings, innovation, and market share.
- Check if Warby Parker pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Warby Parker'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 Warby Parker 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 Warby Parker is a good investment.
Sell | Buy |
Buy
Market Performance | Solid | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Warby Parker Stock
Researching Warby Parker'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 97.0% of the company outstanding shares are owned by institutional investors. The company recorded a loss per share of 0.27. Warby Parker had not issued any dividends in recent years.
To determine if Warby Parker 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 Warby Parker's research are outlined below:
| The company reported the previous year's revenue of 669.76 M. Net Loss for the year was (63.2 M) with profit before overhead, payroll, taxes, and interest of 341.06 M. | |
| Over 97.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from news.google.com: Jennison Associates LLC Has 31.67 Million Position in Warby Parker Inc. - MarketBeat |
Warby Parker Quarterly Liabilities And Stockholders Equity |
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Warby Parker 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 Warby Parker. 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 Warby Parker'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.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Warby Parker'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 Warby Parker's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-05-09 | 2023-03-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2022-08-11 | 2022-06-30 | -0.02 | -0.01 | 0.01 | 50 | ||
2022-03-17 | 2021-12-31 | -0.09 | -0.08 | 0.01 | 11 | ||
2024-02-28 | 2023-12-31 | 0.01 | -0.01 | -0.02 | 200 | ||
2023-08-09 | 2023-06-30 | 0.02 | 0.04 | 0.02 | 100 | ||
2024-08-08 | 2024-06-30 | 0.05 | 0.08 | 0.03 | 60 | ||
2024-05-09 | 2024-03-31 | 0.07 | 0.11 | 0.04 | 57 | ||
2022-05-16 | 2022-03-31 | 0.01 | -0.03 | -0.04 | 400 |
Know Warby Parker's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Warby Parker is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Warby Parker backward and forwards among themselves. Warby Parker's institutional investor refers to the entity that pools money to purchase Warby Parker'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 | State Street Corp | 2024-06-30 | 2.1 M | Rock Springs Capital Management Lp | 2024-06-30 | 2.1 M | Geode Capital Management, Llc | 2024-09-30 | 2 M | Jennison Associates Llc | 2024-09-30 | 1.9 M | Timessquare Capital Management, Llc | 2024-09-30 | 1.9 M | Renaissance Technologies Corp | 2024-09-30 | 1.7 M | D. E. Shaw & Co Lp | 2024-09-30 | 1.6 M | Loomis, Sayles & Company Lp | 2024-06-30 | 1.5 M | Marshall Wace Asset Management Ltd | 2024-06-30 | 1.4 M | Vanguard Group Inc | 2024-09-30 | 9.8 M | Durable Capital Partners Lp | 2024-09-30 | 8.2 M |
Warby Parker's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.78 B.Market Cap |
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Warby Parker's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.11) | (0.12) | |
| Return On Capital Employed | (0.16) | (0.17) | |
| Return On Assets | (0.11) | (0.11) | |
| Return On Equity | (0.21) | (0.22) |
Determining Warby Parker's profitability involves analyzing its financial statements and using various financial metrics to determine if Warby Parker is a good buy. For example, gross profit margin measures Warby Parker'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 Warby Parker's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Warby Parker's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Warby Parker. Check Warby Parker's Beneish M Score to see the likelihood of Warby Parker's management manipulating its earnings.
Evaluate Warby Parker's management efficiency
Warby Parker has return on total asset (ROA) of (0.0422) % which means that it has lost $0.0422 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1015) %, meaning that it created substantial loss on money invested by shareholders. Warby Parker's management efficiency ratios could be used to measure how well Warby Parker manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.12 in 2024. Return On Capital Employed is likely to drop to -0.17 in 2024. At this time, Warby Parker's Net Tangible Assets are fairly stable compared to the past year. Other Assets is likely to rise to about 10.3 M in 2024, whereas Total Assets are likely to drop slightly above 486.3 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.57 | 1.76 | |
| Tangible Book Value Per Share | 2.47 | 1.70 | |
| Enterprise Value Over EBITDA | (53.38) | (50.71) | |
| Price Book Value Ratio | 5.48 | 5.21 | |
| Enterprise Value Multiple | (53.38) | (50.71) | |
| Price Fair Value | 5.48 | 5.21 | |
| Enterprise Value | 1.6 B | 1.5 B |
Warby Parker's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 1.806 |
Basic technical analysis of Warby Stock
As of the 25th of November, Warby Parker maintains the Market Risk Adjusted Performance of 0.5967, mean deviation of 2.34, and Downside Deviation of 2.54. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Warby Parker, as well as the relationship between them.Warby Parker'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 Warby Parker insiders, such as employees or executives, is commonly permitted as long as it does not rely on Warby Parker'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 Warby Parker 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.
Warby Parker's Outstanding Corporate Bonds
Warby Parker 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. Warby Parker 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 Warby bonds can be classified according to their maturity, which is the date when Warby Parker 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.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Warby Parker's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Warby Parker'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 | 0.2051 | |||
| Market Risk Adjusted Performance | 0.5967 | |||
| Mean Deviation | 2.34 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.54 | |||
| Coefficient Of Variation | 388.28 | |||
| Standard Deviation | 3.21 | |||
| Variance | 10.32 | |||
| Information Ratio | 0.2168 | |||
| Jensen Alpha | 0.6491 | |||
| Total Risk Alpha | 0.3114 | |||
| Sortino Ratio | 0.274 | |||
| Treynor Ratio | 0.5867 | |||
| Maximum Drawdown | 18.67 | |||
| Value At Risk | (3.47) | |||
| Potential Upside | 6.18 | |||
| Downside Variance | 6.46 | |||
| Semi Variance | 4.29 | |||
| Expected Short fall | (2.88) | |||
| Skewness | 0.7868 | |||
| Kurtosis | 1.96 |
| Risk Adjusted Performance | 0.2051 | |||
| Market Risk Adjusted Performance | 0.5967 | |||
| Mean Deviation | 2.34 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.54 | |||
| Coefficient Of Variation | 388.28 | |||
| Standard Deviation | 3.21 | |||
| Variance | 10.32 | |||
| Information Ratio | 0.2168 | |||
| Jensen Alpha | 0.6491 | |||
| Total Risk Alpha | 0.3114 | |||
| Sortino Ratio | 0.274 | |||
| Treynor Ratio | 0.5867 | |||
| Maximum Drawdown | 18.67 | |||
| Value At Risk | (3.47) | |||
| Potential Upside | 6.18 | |||
| Downside Variance | 6.46 | |||
| Semi Variance | 4.29 | |||
| Expected Short fall | (2.88) | |||
| Skewness | 0.7868 | |||
| Kurtosis | 1.96 |
Consider Warby Parker's intraday indicators
Warby Parker 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 Warby Parker 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.
Warby Parker Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 22nd 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 |
F3 | 5th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Warby Stock media impact
Far too much social signal, news, headlines, and media speculation about Warby Parker that are available to investors today. That information is available publicly through Warby media outlets and privately through word of mouth or via Warby internal channels. However, regardless of the origin, that massive amount of Warby 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 Warby Parker 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 Warby Parker 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 Warby Parker's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Warby Parker alpha.
Warby Parker Historical Investor Sentiment
Investor biases related to Warby Parker's public news can be used to forecast risks associated with an investment in Warby. The trend in average sentiment can be used to explain how an investor holding Warby can time the market purely based on public headlines and social activities around Warby Parker. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Warby Parker'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 Warby Parker 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 Warby Parker news discussions. The higher the estimate score, the more favorable the investor's outlook on Warby Parker.
Warby Parker Corporate Management
| Sandy Gilsenan | SVP Officer | Profile | |
| Chris Utecht | General VP | Profile | |
| Tina Romani | VP Relations | Profile | |
| Lori Krauss | Senior Officer | Profile | |
| Steve Miller | VP CFO | Profile | |
| Stephanie Hart | VP Operations | Profile |
Already Invested in Warby Parker?
The danger of trading Warby Parker is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Warby Parker is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Warby Parker. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Warby Parker is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Warby Stock Analysis
When running Warby Parker's price analysis, check to measure Warby Parker'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 Warby Parker is operating at the current time. Most of Warby Parker's value examination focuses on studying past and present price action to predict the probability of Warby Parker's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Warby Parker's price. Additionally, you may evaluate how the addition of Warby Parker to your portfolios can decrease your overall portfolio volatility.