One-glance verdict
Undervalued
$19.08 our estimate vs market $3.15
83% below our estimate, below the bear case
Fundamentals snapshot
LightInTheBox Holding Co., Ltd.
LITB · NYQ · Consumer Cyclical · Internet Retail
Current price
$3.15
52-week range
$1.63 - $4.17
Market cap
$62.14M
Balance sheet
Healthy
468.59x Strong cushion
Net cash $12.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 9.4% last year.
- Reward Free cash flow was positive in 4/10 years.
- Reward Trades at 6.4x P/E vs peer median 23.5x (72.7% cheaper).
- Risk Stock trades 37.8% above its 5-year average P/E.
What this company does
LightInTheBox Holding Co., Ltd.
LightInTheBox is an online retailer that sells its own designed clothing and other lifestyle products directly to customers, mainly in Europe and North America. The company makes money from these sales on its websites and apps, meaning its success depends on attracting online shoppers and efficiently managing its supply chain (the entire process of creating and delivering a product to the customer).
How the company got here
Founded in 2007, LightInTheBox started as an online retailer shipping a wide variety of products directly from Chinese manufacturers to customers around the world. [1, 5, 11] In 2013, it became the first company of its kind from China to be listed on the New York Stock Exchange. [11] After facing heavy competition in the online retail space, the company began a major strategic shift. [21] It has been transforming from a general marketplace selling many different items to a more focused "consumer lifestyle company," concentrating on its own unique brands and specialized products. [4, 21]
What it actually does
LightInTheBox is an online store that sells lifestyle products to people in over 200 countries through its websites and mobile apps. [12, 17] Think of it as a global e-commerce platform where you can buy items like clothing, home and garden decor, and small electronics. [1, 9] The company is particularly known for offering made-to-order items, such as customized wedding dresses and evening gowns, which allows for personalization and helps reduce the cost of holding inventory (unsold products sitting in a warehouse). [1, 5]
Proprietary Apparel Brands
A key and growing part of the business is selling clothing under its own private brands, such as Ador. [2, 10, 14] This is a newer focus for the company, targeting customers (primarily women over 30) looking for outfits for specific life events like vacations, parties, or social gatherings. [20, 21] By designing and selling its own brands, the company can offer unique products that aren't easily found elsewhere and earn higher profit margins (the portion of sales revenue that turns into actual profit). [13] This segment represents a significant shift from simply reselling other manufacturers' goods. [4]
Online Marketplace
This is the company's original and largest business, operating websites like LightInTheBox.com that connect customers with thousands of suppliers. [1, 3] Instead of selling generic, everyday items, this marketplace now focuses on customizable and event-driven products, like costumes for Halloween or decorations for Christmas. [20, 21] Customers pay for the products and shipping, and LightInTheBox manages the transaction and logistics (the process of getting the product from the supplier to the customer's door). [1] This part of the business often uses a direct-to-consumer model, shipping directly from the manufacturer to the end buyer. [13]
Services for E-commerce Companies
A smaller part of the company's business involves offering a range of services to other online retail companies. [10, 22] This includes things like advertising, managing the supply chain (the entire process of making and delivering a product), handling payments, and arranging for order fulfillment (packing and shipping). [14, 22] Essentially, LightInTheBox leverages its own experience and infrastructure in global e-commerce to help other businesses operate. This provides another, though smaller, stream of revenue (income) for the company.
What management is betting on now
The company's main strategy is to deeply integrate artificial intelligence (AI) into its operations, from predicting fashion trends to personalizing marketing for customers. [2, 16] This is part of a plan to become an "AI-enabled consumer platform" that can more efficiently meet shopper demands. [2] Management is also betting heavily on its own proprietary brands and a shift to a "Manufacturer-to-Consumer" model, where it produces more goods in-house in small batches. [10] This approach is designed to increase control over product quality, improve profit margins (the percentage of revenue that is profit), and reduce the risk of being stuck with unsold inventory. [10, 13]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-48.95M
FY2025 Q4
$6.17M
Revenue
—
Net income
$8.28M
Diluted EPS
0.04
Operating cash flow
$6.21M
Free cash flow
$6.17M
Fetching…
Sources
Revenue
—
Net income
$-2.49M
Diluted EPS
-0.01
Operating cash flow
$-48.16M
Free cash flow
$-48.95M
Fetching…
Sources
Is it cheap or expensive?
Fair value $19.08 vs current price $3.15
Our most-likely fair value is $19.08 a share — about 505.7% above today's price of $3.15, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $12.2M - more cash than debt. Interest coverage 468.6x.
Net debt
$-12.24M
Interest coverage
468.59x
LightInTheBox Holding Co., Ltd.'s profit covers its interest bill about 468.6 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
LITB
BASELINE
LightInTheBox Holding Co., Ltd.
Total debt $3.73M Interest coverage 468.59x This is the baseline the peer rows are being compared against.
Total debt $4.17M Interest coverage 13.35x -97% vs LITB Carries about 35.1x less debt cushion than LITB.
Total debt $18.51M Interest coverage -271.12x -100% vs LITB This peer has almost no interest-payment cushion compared with LITB.
Total debt $7.74M Interest coverage -1.22x -100% vs LITB This peer has almost no interest-payment cushion compared with LITB.
Total debt $281.24M Interest coverage 1.68x -100% vs LITB Carries about 278.7x less debt cushion than LITB.
What you should know
The case for and against LITB
3 Rewards
1 Risk
Rewards
-
Revenue grew 9.4% last year.
-
Free cash flow was positive in 4/10 years.
-
Trades at 6.4x P/E vs peer median 23.5x (72.7% cheaper).
Risks
-
Stock trades 37.8% above its 5-year average P/E.
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)
6.43x
Forward P/E
3.50x
P/B
-55.26x
P/S
0.27x
EV/EBITDA
3.93x
PEG ratio
18.57x
Profitability
How much profit each dollar creates
Gross margin
65.0%
Operating margin
3.6%
Net margin
3.9%
ROE
—
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
0.42x
Quick ratio
0.28x
Total debt
$3.73M
Total cash
$15.97M
Growth
How the business has been compounding
Revenue TTM
$1.32B
Revenue 5Y CAGR
2.3%
EPS TTM
0.49
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-26.84M
Free CF TTM
$6.17M
FCF margin
0.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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