One-glance verdict
Undervalued
$32.59 our estimate vs market $9.70
Wall Street consensus: $19.50 (-40.2% lower than our fair-value estimate)
70% below our estimate, below the bear case
Fundamentals snapshot
a.k.a. Brands Holding Corp.
AKA · NYQ · Consumer Cyclical · Apparel Retail
Current price
$9.70
52-week range
$8.42 - $14.38
Market cap
$107.29M
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 2.9% 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 Holding Corp. sells trendy clothing and accessories, like dresses and streetwear, online and in some stores to young adults and women. Their money mostly comes from selling these fashion items, and this matters because it shows how well they are doing at reaching their target customers and selling their products.
How the company got here
a.k.a. Brands Holding Corp. was founded in 2018 with the goal of acquiring and growing online fashion brands that appeal to younger consumers. The company was established by the private equity firm Summit Partners, which saw an opportunity to consolidate popular direct-to-consumer (DTC) brands under one umbrella. DTC means the company sells directly to customers, cutting out middlemen. a.k.a. Brands uses a data-driven approach, meaning they analyze trends and customer behavior, especially on social media, to quickly bring new styles to market. This strategy allows them to "test and repeat" designs, investing more in styles that prove popular. The company has expanded its reach by acquiring brands like Princess Polly, Culture Kings, Petal & Pup, and mnml, and has also begun opening physical retail stores to complement its online presence.
What it actually does
a.k.a. Brands operates as a platform for several distinct online fashion brands, primarily targeting Gen Z and Millennial shoppers. These consumers are highly influenced by social media trends and prefer to shop online. The company's core strategy involves identifying popular styles, quickly producing them, and marketing them heavily through digital channels. They aim to offer a constant stream of new and trendy items to keep their customers engaged. In addition to online sales, a.k.a. Brands is increasingly investing in physical retail stores to provide a more comprehensive shopping experience for its customers.
Princess Polly
Princess Polly is a women's fashion brand that focuses on trendy, fun styles, including dresses, tops, shoes, and accessories. It primarily targets young women aged 15 to 25 who are looking for fashionable items inspired by social media. The brand has been expanding its physical presence with new stores in the U.S. and Australia, in addition to its strong online sales channel. Princess Polly is one of the foundational brands of a.k.a. Brands, having joined the platform in 2018.
Petal & Pup
Petal & Pup offers a range of feminine and flattering styles, with a particular emphasis on dresses for special occasions. This brand caters to women aged 25 to 34 who are looking for quality and value in their fashion choices. Petal & Pup also engages in wholesale partnerships, for example, with Nordstrom, to reach a broader customer base. The brand was founded in Australia in 2015 and became part of a.k.a. Brands in 2018.
Culture Kings
Culture Kings is a streetwear brand that offers apparel, footwear, headwear, and accessories for style-conscious male consumers between the ages of 18 and 35. It's known for its premium streetwear and experiential retail approach, often featuring unique store designs with elements like bars and basketball courts. The brand also carries a mix of its own in-house designed brands and exclusive products from over 100 third-party streetwear labels. Culture Kings was founded in Australia in 2008 and joined a.k.a. Brands in 2021.
mnml
mnml is a streetwear brand that focuses on providing on-trend wardrobe staples at competitive prices. It aims to offer accessible streetwear fashion to consumers. This brand, like the others, leverages social media for inspiration and sales, contributing to the overall portfolio of a.k.a. Brands' offerings in the streetwear market.
What management is betting on now
a.k.a. Brands' management is focused on expanding its physical retail footprint, viewing it as a significant growth opportunity. They are also committed to attracting and retaining customers through their direct-to-consumer channels and increasing brand awareness via both online and physical retail. The company is streamlining operations and strengthening its financial foundation, with a particular emphasis on leveraging data and AI (artificial intelligence) to drive efficiency and margin expansion. This includes optimizing product imagery, marketing efforts, and inventory management. Management is also working on transforming its supply chain to be more flexible and less reliant on single sourcing locations.
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 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
FY2026 Q3
$-7.43M
Revenue
$161.34M
Net income
$-7.73M
Diluted EPS
-0.70
Operating cash flow
$-2.52M
Free cash flow
$-7.43M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $32.59 vs current price $9.70
Wall Street consensus is the average analyst price target: $19.50 (-40.2% lower than our fair-value estimate).
Our most-likely fair value is $32.59 a share — about 236.0% above today's price of $9.70, 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 -2.51x 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 2.9% 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
-8.94x
P/B
1.07x
P/S
0.18x
EV/EBITDA
30.59x
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
$617.82M
Revenue 5Y CAGR
1.6%
EPS TTM
-2.73
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$17.89M
Free CF TTM
$-633.00K
FCF margin
-0.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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