National Vision Holdings, Inc.
National Vision Holdings, Inc. Fundamental Analysis
National Vision Holdings, Inc. (EYE) shows weak financial fundamentals with a PE ratio of -938.64, profit margin of -0.12%, and ROE of -0.27%. The company generates $1.9B in annual revenue with weak year-over-year growth of -14.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 1.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EYE's fundamental strength across five key dimensions:
Efficiency Score
WeakEYE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEYE trades at attractive valuation levels.
Growth Score
ModerateEYE shows steady but slowing expansion.
Financial Health Score
ModerateEYE shows balanced financial health with some risks.
Profitability Score
WeakEYE struggles to sustain strong margins.
Key Financial Metrics
Is EYE Expensive or Cheap?
P/E Ratio
EYE trades at -938.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EYE's PEG of -11.07 indicates potential undervaluation.
Price to Book
The market values National Vision Holdings, Inc. at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.19 times EBITDA. This signals the market has high growth expectations.
How Well Does EYE Make Money?
Net Profit Margin
For every $100 in sales, National Vision Holdings, Inc. keeps $-0.12 as profit after all expenses.
Operating Margin
Core operations generate 1.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.27 in profit for every $100 of shareholder equity.
ROA
National Vision Holdings, Inc. generates $-0.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Vision Holdings, Inc. generates limited operating cash flow of $163.59M, signaling weaker underlying cash strength.
Free Cash Flow
National Vision Holdings, Inc. produces free cash flow of $83.05M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.05 in free cash annually.
FCF Yield
EYE converts 3.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-938.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How EYE Stacks Against Its Sector Peers
| Metric | EYE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -938.64 | 25.25 | Better (Cheaper) |
| ROE | -0.27% | 1170.00% | Weak |
| Net Margin | -0.12% | 742.00% | Weak |
| Debt/Equity | 0.81 | 0.77 | Neutral |
| Current Ratio | 0.53 | 9.19 | Weak Liquidity |
| ROA | -0.12% | -6467.00% (disorted) | Weak |
EYE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Vision Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.76%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-186.91%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-19.02%
Industry Style: Cyclical, Growth, Discretionary
Declining