One-glance verdict
Within fair range
$2.10 our estimate vs market $2.85
Wall Street consensus: $4.60 (119.4% higher than our fair-value estimate)
36% above our estimate
Fundamentals snapshot
Stitch Fix, Inc.
SFIX · NMS · Consumer Cyclical · Apparel Retail
Current price
$2.85
52-week range
$2.81 - $5.94
Market cap
$380.26M
Balance sheet
Healthy
-3.63x Concerning
Net cash $112.28M. 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 5.3% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -9.5% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 4.9% (peer median: 7.2%).
What this company does
Stitch Fix, Inc.
Stitch Fix is an online personal styling company that sends customers a box of clothes and accessories chosen specifically for them by stylists and software. The company makes money when a customer decides to keep and pay for items from their box, creating a model built on repeat purchases. This means Stitch Fix's success depends on how accurately it can predict what people will like and buy, turning one-time shoppers into loyal, long-term customers.
How the company got here
Stitch Fix was started in 2011 by Katrina Lake, who had the idea while she was a student at Harvard Business School to make shopping for clothes more personal and convenient. The company began by sending curated boxes of clothing, selected by stylists with the help of data, to women. Over the years, it expanded to include clothing for men, kids, and a wider range of sizes. The company became publicly traded in 2017, but later faced challenges with slowing growth, leading to a change in leadership and a renewed focus on its core business in the United States.
What it actually does
Stitch Fix is an online personal styling service that sends clothing and accessories directly to customers. Instead of customers endlessly scrolling through websites, the company uses a combination of computer algorithms (a set of rules for a computer to follow) and human stylists to pick out items suited to each person's taste, size, and budget. Customers fill out a style profile online to get started. The service is designed for people who want a more personalized way to shop for clothes without having to go to a physical store.
Fix
This is the company's original and best-known service, where customers receive a box of curated clothing and accessories, called a "Fix." For each Fix, the customer pays a styling fee (a charge for the stylist's time and expertise), which can be applied as a credit towards any items they decide to purchase. They can try on the items at home, keep what they like, and send back the rest for free. This service makes up the core of Stitch Fix's business and is the primary way it builds a relationship with its customers.
Freestyle
Freestyle is a newer way for customers to shop with Stitch Fix, allowing them to buy individual items directly from a personalized online store. Unlike the Fix, there's no need to order a full box of clothes; customers can browse and purchase items whenever they want. The items shown in the Freestyle shop are still tailored to each customer's style preferences and size. This part of the business offers more flexibility and is designed to complement the core Fix service, letting customers shop between their scheduled shipments.
What management is betting on now
The company's current focus is on improving its core personal styling service and returning to profitable growth. Management is concentrating on enhancing the quality of the "Fix" experience to better meet customer expectations. They are also working to expand the variety of clothing offered and are using artificial intelligence (computer systems that can perform tasks that normally require human intelligence) to help with everything from clothing design to personalized recommendations. The strategy is to create a more efficient and engaging shopping experience that keeps customers coming back.
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
$4.49M
FY2025 Q1
$9.95M
FY2025 Q2
$-19.44M
FY2025 Q3
$16.00M
FY2025 Q4
$2.77M
FY2026 Q1
$5.57M
FY2026 Q2
$3.35M
FY2026 Q3
$6.52M
Revenue
$340.28M
Net income
$-1.52M
Diluted EPS
-0.01
Operating cash flow
$11.77M
Free cash flow
$6.52M
Fetching…
Sources
Revenue
$341.30M
Net income
$-2.65M
Diluted EPS
-0.02
Operating cash flow
$7.32M
Free cash flow
$3.35M
Fetching…
Sources
Revenue
$342.13M
Net income
$-6.36M
Diluted EPS
-0.05
Operating cash flow
$10.91M
Free cash flow
$5.57M
Fetching…
Sources
Revenue
$311.23M
Net income
$-8.58M
Diluted EPS
-0.06
Operating cash flow
$7.00M
Free cash flow
$2.77M
Fetching…
Sources
Revenue
$325.02M
Net income
$-7.38M
Diluted EPS
-0.06
Operating cash flow
$20.52M
Free cash flow
$16.00M
Fetching…
Sources
Revenue
$312.11M
Net income
$-6.53M
Diluted EPS
-0.05
Operating cash flow
$-16.21M
Free cash flow
$-19.44M
Fetching…
Sources
Revenue
$318.82M
Net income
$-6.26M
Diluted EPS
-0.05
Operating cash flow
$14.27M
Free cash flow
$9.95M
Fetching…
Sources
Revenue
$319.55M
Net income
$-36.50M
Diluted EPS
-0.29
Operating cash flow
$8.20M
Free cash flow
$4.49M
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.10 vs current price $2.85
Wall Street consensus is the average analyst price target: $4.60 (119.4% higher than our fair-value estimate).
Our most-likely fair value is $2.10 a share — about 26.4% away from today's price of $2.85, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $112.3M - more cash than debt. Interest coverage -3.6x.
Net debt
$-112.28M
Interest coverage
-3.63x
Stitch Fix, Inc.'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.
Healthy
Worse cushion
Baseline
Better cushion
SFIX
BASELINE
Stitch Fix, Inc.
Total debt $74.53M Interest coverage -3.63x This is the baseline the peer rows are being compared against.
Total debt $196.00M Interest coverage -2.83x Neither company has much profit cushion over interest right now.
Total debt $50.61M Interest coverage -11.33x Neither company has much profit cushion over interest right now.
Total debt $463.31M Interest coverage -0.86x Neither company has much profit cushion over interest right now.
Total debt $25.45M Interest coverage -5.12x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SFIX
2 Rewards
2 Risks
Rewards
-
Revenue grew 5.3% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -9.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 4.9% (peer median: 7.2%).
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
-36.22x
P/B
1.89x
P/S
0.28x
EV/EBITDA
-1,960.64x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
43.7%
Operating margin
-1.2%
Net margin
-1.4%
ROE
-9.5%
ROA
-3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.37x
Current ratio
1.50x
Quick ratio
0.74x
Total debt
$74.53M
Total cash
$186.81M
Growth
How the business has been compounding
Revenue TTM
$1.33B
Revenue 5Y CAGR
-11.9%
EPS TTM
-0.14
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$37.01M
Free CF TTM
$9.28M
FCF margin
0.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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