FIGS, Inc.
FIGS, Inc. Fundamental Analysis
FIGS, Inc. (FIGS) shows weak financial fundamentals with a PE ratio of 48.21, profit margin of 6.10%, and ROE of 9.69%. The company generates $0.7B in annual revenue with strong year-over-year growth of 13.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FIGS's fundamental strength across five key dimensions:
Efficiency Score
WeakFIGS struggles to generate sufficient returns from assets.
Valuation Score
ModerateFIGS shows balanced valuation metrics.
Growth Score
ExcellentFIGS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFIGS maintains a strong and stable balance sheet.
Profitability Score
WeakFIGS struggles to sustain strong margins.
Key Financial Metrics
Is FIGS Expensive or Cheap?
P/E Ratio
FIGS trades at 48.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FIGS's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values FIGS, Inc. at 4.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.85 times EBITDA. This signals the market has high growth expectations.
How Well Does FIGS Make Money?
Net Profit Margin
For every $100 in sales, FIGS, Inc. keeps $6.10 as profit after all expenses.
Operating Margin
Core operations generate 6.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.69 in profit for every $100 of shareholder equity.
ROA
FIGS, Inc. generates $7.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FIGS, Inc. generates limited operating cash flow of $48.90M, signaling weaker underlying cash strength.
Free Cash Flow
FIGS, Inc. produces free cash flow of $39.59M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.24 in free cash annually.
FCF Yield
FIGS converts 1.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FIGS Stacks Against Its Sector Peers
| Metric | FIGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.21 | 23.70 | Worse (Expensive) |
| ROE | 9.69% | 1185.00% | Weak |
| Net Margin | 6.10% | 2505.00% | Weak |
| Debt/Equity | 0.14 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 5.39 | 2.86 | Strong Liquidity |
| ROA | 7.21% | -8133.00% (disorted) | Weak |
FIGS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FIGS, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
136.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-32.25%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
176.85%
Industry Style: Cyclical, Growth, Discretionary
High Growth