One-glance verdict
Undervalued
$29.26 our estimate vs market $11.22
Wall Street consensus: $19.75 (-32.5% lower than our fair-value estimate)
62% below our estimate, below the bear case
Fundamentals snapshot
a.k.a. Brands Holding Corp.
AKA · NYQ · Consumer Cyclical · Apparel Retail
Current price
$11.22
52-week range
$8.42 - $16.38
Market cap
$123.32M
Balance sheet
Distressed
-1.81x Concerning
Net debt $195.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 0.6% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Net debt grew 38.4% over 3 years.
- Risk Return on equity was -25.5% last year — the company lost money on shareholders' equity.
What this company does
a.k.a. Brands Holding Corp.
a.k.a. Brands is a company that owns several popular online clothing stores, like Princess Polly and Culture Kings, which sell trendy clothes and streetwear to young adults. It makes money by selling fashion through these different websites to distinct groups of shoppers around the world. This matters because owning a portfolio of brands allows the company to appeal to various styles, so if one trend fades, another brand can help keep sales steady.
How the company got here
a.k.a. Brands Holding Corp. was formed in 2018 with a specific strategy: to buy and grow online fashion brands that are popular with younger shoppers. They started by acquiring Princess Polly, an Australian brand, in 2018. The company then added Petal & Pup in 2019, Culture Kings in 2021, and mnml in 2021, creating a portfolio of distinct but complementary fashion lines. This approach allows them to reach a wide range of young consumers by offering different styles under one corporate umbrella.
What it actually does
a.k.a. Brands is a collection of online-focused fashion retailers that sell clothing, shoes, and accessories to Gen Z and Millennial customers. Think of it as a parent company that owns several different clothing stores you might see online or on social media. They use a data-driven approach, meaning they pay close attention to what's trending and what customers are buying to quickly release new styles. While they primarily sell directly to shoppers online, they are also expanding into physical retail stores and selling through other retailers.
Princess Polly
This brand is a major online fashion destination for young women, particularly those in their late teens and early twenties. It started in Australia and has become very popular through its savvy use of social media and partnerships with influencers (people with large online followings who promote products). Princess Polly sells trendy dresses, tops, and accessories, releasing new items almost every week to keep up with the latest styles. This part of the business is a significant driver for the company and is expanding its physical presence with new stores in the U.S.
Culture Kings
Culture Kings is a global retailer focused on streetwear, which is a style of casual clothing worn by followers of popular culture, particularly in music, sports, and art. It sells a mix of products from well-known brands like Nike and New Era, as well as its own exclusive in-house brands. The brand is known for its unique in-store experience, which often includes live DJs, basketball courts, and celebrity appearances, creating a lot of buzz online. This segment targets a mostly male audience and is a key part of the company's presence in the popular streetwear market.
Petal & Pup
This Australian-born brand offers feminine and stylish clothing for women, often for special occasions like weddings or parties, as well as everyday wear. It targets a slightly older demographic than Princess Polly, typically women in their twenties and thirties. Petal & Pup sells its dresses, tops, and accessories primarily online but has also started selling through well-known department stores. This brand represents the company's effort to capture the market for affordable, on-trend occasion wear.
mnml
Based in Los Angeles, mnml (pronounced 'minimal') focuses on creating modern streetwear for men at affordable prices. The brand is known for its clean and simple designs, especially its denim and other wardrobe staples. By operating almost exclusively online, mnml is able to keep its overhead (the ongoing costs to run a business) low and pass those savings on to customers. This brand is a key part of a.k.a.'s strategy to offer high-demand streetwear styles without the high-end price tag.
What management is betting on now
Management is focused on growing by reaching customers in multiple ways, a strategy known as an omnichannel approach. This includes opening more physical retail stores, particularly for the Princess Polly brand, to build brand awareness and offer an in-person shopping experience. They are also expanding into wholesale (selling their products in bulk to other retailers) and forming partnerships with other online marketplaces. The company continues to rely on its data-driven model to quickly test new styles and restock popular items, which helps manage inventory (the products a company has on hand to sell) and stay on top of trends.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-7.10M
FY2024 Q4
$3.10M
FY2025 Q1
$-5.31M
FY2025 Q2
$7.40M
FY2025 Q3
$317.00K
FY2025 Q4
$-3.04M
FY2026 Q1
$-6.41M
FY2026 Q2
$18.23M
Revenue
$160.07M
Net income
$-161.00K
Diluted EPS
-0.01
Operating cash flow
$22.55M
Free cash flow
$18.23M
Fetching…
Sources
Revenue
$132.46M
Net income
$-7.13M
Diluted EPS
-0.66
Operating cash flow
$-3.83M
Free cash flow
$-6.41M
Fetching…
Sources
Revenue
$163.95M
Net income
$-14.50M
Diluted EPS
-1.35
Operating cash flow
$1.69M
Free cash flow
$-3.04M
Fetching…
Sources
Revenue
$147.08M
Net income
$-4.96M
Diluted EPS
-0.46
Operating cash flow
$4.74M
Free cash flow
$317.00K
Fetching…
Sources
Revenue
$160.52M
Net income
$-3.62M
Diluted EPS
-0.34
Operating cash flow
$11.89M
Free cash flow
$7.40M
Fetching…
Sources
Revenue
$128.66M
Net income
$-8.35M
Diluted EPS
-0.78
Operating cash flow
$-1.88M
Free cash flow
$-5.31M
Fetching…
Sources
Revenue
$159.02M
Net income
$-9.36M
Diluted EPS
-0.88
Operating cash flow
$7.01M
Free cash flow
$3.10M
Fetching…
Sources
Revenue
$149.90M
Net income
$-5.44M
Diluted EPS
-0.51
Operating cash flow
$-2.14M
Free cash flow
$-7.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $29.26 vs current price $11.22
Wall Street consensus is the average analyst price target: $19.75 (-32.5% lower than our fair-value estimate).
Our most-likely fair value is $29.26 a share — about 160.8% above today's price of $11.22, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $195.2M. Interest coverage -1.8x.
Net debt
$195.24M
Interest coverage
-1.81x
a.k.a. Brands Holding Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AKA
BASELINE
a.k.a. Brands Holding Corp.
Total debt $216.29M Interest coverage -1.81x This is the baseline the peer rows are being compared against.
Total debt $25.45M Interest coverage -5.12x Neither company has much profit cushion over interest right now.
Total debt $417.49M Interest coverage 0.67x This peer still has a real interest-payment cushion, while AKA does not.
Total debt $68.34M Interest coverage -3.63x Neither company has much profit cushion over interest right now.
Total debt $16.63M Interest coverage -2.99x Neither company has much profit cushion over interest right now.
What you should know
The case for and against AKA
2 Rewards
2 Risks
Rewards
-
Revenue grew 0.6% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Net debt grew 38.4% over 3 years.
-
Return on equity was -25.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-9.89x
P/B
1.29x
P/S
0.20x
EV/EBITDA
31.38x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
59.6%
Operating margin
0.7%
Net margin
-4.4%
ROE
-25.5%
ROA
-1.3%
Health
Liquidity and balance-sheet strength
Debt / equity
2.26x
Current ratio
1.11x
Quick ratio
0.28x
Total debt
$216.29M
Total cash
$21.05M
Growth
How the business has been compounding
Revenue TTM
$603.56M
Revenue 5Y CAGR
1.6%
EPS TTM
-2.47
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$25.15M
Free CF TTM
$-633.00K
FCF margin
-0.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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