Today I will be going over my Stitch Fix (SFIX) stock analysis. The stock is down 90% from its’ highs so I am asking the question, “Is $SFIX growth stock a buy now?”
#stockstobuynow #SFIXstock #growthstocks
Today we’re going to:
– Take a look at SFIX stock historical financials of 10 years
– Figure out what kind of free cash flow WSFIXIX stock will generate
– Figure out what kind of free cash flow will SFIX stock generate in the future
– Figure out what we think we could earn by buying the SFIX stock today and holding it over long term
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0:00 Intro
0:54 Stock Chart
1:49 Business Overview
12:54 Moat
14:09 Management
15:00 Super Investors
15:33 Financial Data
21:33 Analyst Growth Rates
23:56 Valuation
28:50 Investment Commandments
30:47 Thanks Watching
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NYSE: SFIX
Disclosure: I am not a financial advisor and all comments expressed in this video are my opinions only. This video is not investment advice and each investor is responsible for all buys/sells within their stock portfolio.
Is Stitch Fix a Buy? What do you think?
They probably got wayyy too excited by the pandemic revenue jump and hired too many people. Kind of like peloton
Great section at the end with the questions!! thank you Justin!
A lot of those employees are part time consultants. Aka my ex-wife 😅
I see no durable competitive advantage with this type of business. I put it in the too difficult box.
in the long term, Stitch is in great shape with their unique loot box business model
Not a service I’d buy so it’s hard to have any real conviction.
I'd put this stock in the too much work category. Not a clear but I'll pass unless it's dirt dirt cheap
Appreciate as always!
I think it goes into my 'too hard' pile.
Interesting thing these, 11000 employees. In fact, they added 3000 in last year alone.
Can you do fdx?
Business seems like the customer base is too niche. Quick pass. Like the content.
Hello Justin,
I've got a question regarding the payback time calculation. In the table there is "MC" so I assume it is market capitalization. Isn't it better to use Enterprise Value in that case?
Regarding Stitch Fix, the difference between EV and MC isn't big, but if you look at AT&T for example, the payback time using free cash flow with the MC would seem quite nice, however the Enterprise Value is nearly double the size of the MC and the payback time using EV wouldn't look nice at all.
I mean – just in case that I would have enough dollars available to buy AT&T, I would have to pay the EV value so shouldn't payback time not be made against the Enterprise Value?
One of the reasons for this question is I'm looking at several japanese small caps and they often have an EV of about half the market cap (often absolutely no debt and hordes of cash on the balance sheet) or even less – if you would use payback time with the EV, you would end up with sometimes 4-5 or even less years…