The share price of Stitch Fix, Inc. [NASDAQ: SFIX] inclined by $23.18, presently trading at $24.65. The company’s shares saw 45.09% gains compared to the lowest price in the period of the last 52 weeks, set at $16.99 recorded on Jan 13, 2020. The last few days have been benevolent to the share price as SFIX fall by -0.44% during the last week, even though the stock is still down by -0.96% compared to -0.11 of all time high it touched on 01/07/20. However, the stock had a strong performance during the past 3 months, roughly losing -10.53%, while additionally gaining 19.72% during the last 12 months. Stitch Fix, Inc. is said to have a 12-month price target set at $30.92. That means that the stock has a strong potential to acquire 6.27% increase from the current trading price.
Stitch Fix, Inc. [NASDAQ:SFIX]: Analyst Rating and Earnings
Its stock price has been found in the range of 16.99 to 37.72. This is compared to its latest closing price of $23.18.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Mon 9 Mar (In 56 Days).
Fundamental Analysis of Stitch Fix, Inc. [SFIX]
Now let’s turn to look at profitability: with a current Operating Margin for Stitch Fix, Inc. [SFIX] sitting at +1.49 and its Gross Margin at +43.55, this company’s Net Margin is now 1.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 6.61, and its Return on Invested Capital has reached 7.50%. Its Return on Equity is 10.37, and its Return on Assets is 6.72. These metrics suggest that this Stitch Fix, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
What about valuation? This company’s Enterprise Value to EBITDA is 56.70. The Enterprise Value to Sales for this firm is now 1.36. Stitch Fix, Inc. [SFIX] has a Price to Book Ratio of 6.36, a Price to Cash Flow Ratio of 32.75 and P/E Ratio of 97.97. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Stitch Fix, Inc. [SFIX] earns $197,195 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 2.87. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.99 and its Current Ratio is 2.64. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Stitch Fix, Inc. [SFIX] has 105.24M shares outstanding, amounting to a total market cap of $2.59B. Its stock price has been found in the range of 16.99 to 37.72. At its current price, it has moved down by -34.65% from its 52-week high, and it has moved up 45.09% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 51.08. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Stitch Fix, Inc. [SFIX] a Reliable Buy?
Stitch Fix, Inc. [SFIX] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.