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Allbirds (BIRD)
NASDAQ:BIRD
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Allbirds
(NASDAQ:BIRD)41Neutral
Positive Factors
Brand Innovation
BIRD is focused on injecting newness and freshness into the brand by incorporating texture, color, and new materials, all while leaning into the 'codes' that make Allbirds shoes easily identifiable.
Negative Factors
Profitability Concerns
Investor focus remaining on the lack of profitability and cash burn rate, which we don't believe is likely to inflect near-term.
Sales Challenges
Fundamentals remain objectively challenged with significant sales decline, and are expected to continue facing challenges in future quarters.
Allbirds (BIRD) vs. S&P 500 (SPY)
Market Cap
$50.85M
Dividend YieldN/A
Average Volume (3M)48.18K
Price to Earnings (P/E)―
Beta (1Y)2.62
Revenue Growth-22.67%
EPS Growth-0.21%
CountryUS
Employees927
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-16.03
Shares Outstanding5,390,015
10 Day Avg. Volume44,725
30 Day Avg. Volume48,181
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.26
Price to Cash Flow (P/CF)-1.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside20.66% Upside
Rating ConsensusHold
Number of Analyst Covering1
Allbirds Business Overview & Revenue Model
Company DescriptionAllbirds (BIRD) is a sustainable footwear and apparel company that designs and sells eco-friendly products. Known for its commitment to sustainability, Allbirds uses natural materials such as merino wool, eucalyptus tree fiber, and sugarcane to produce comfortable and stylish shoes, apparel, and accessories. The company operates in the retail and fashion sectors, with a focus on reducing its carbon footprint and promoting environmentally responsible manufacturing practices.
How the Company Makes MoneyAllbirds makes money primarily through the direct sale of its footwear and apparel products to consumers via its e-commerce platform and physical retail locations. The company's revenue model is based on selling premium products at a higher price point, justified by their sustainable materials and manufacturing processes. Allbirds also leverages strategic partnerships to expand its reach and enhance its product offerings, though specific partnership details are not publicly disclosed. Additionally, Allbirds invests in marketing and branding efforts to strengthen its position in the eco-conscious consumer market, which contributes indirectly to its revenue generation.
Allbirds Financial Statement Overview
Summary
Allbirds is facing significant financial challenges with declining revenues, negative profitability, and cash flow difficulties. While there is potential for improvement through strategic changes, current indicators reflect inefficiencies and a need for operational improvements.Income Statement
Allbirds has experienced declining revenues, with a significant drop compared to previous periods. The company is also facing challenges with negative net profit margins and EBIT margins, indicating ongoing profitability issues. Despite these challenges, there is potential for improvement with strategic changes.35
Negative
Balance Sheet
The balance sheet shows a relatively high debt-to-equity ratio, though it has decreased over time, indicating efforts to manage leverage. However, the negative return on equity highlights inefficiencies in generating profits from equity. The equity ratio suggests a moderate level of equity compared to assets, but improvements are needed for financial stability.45
Neutral
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, reflecting cash management challenges. The free cash flow to net income ratio is negative, highlighting the need for better cash generation. However, the company has been able to maintain some cash reserves, providing a buffer for short-term needs.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 205.90M | 254.06M | 297.77M | 277.47M | 219.30M | 193.67M | Gross Profit |
| 77.84M | 104.23M | 129.63M | 146.66M | 112.74M | 98.83M | EBIT |
| -99.03M | -153.00M | -96.22M | -32.88M | -29.22M | -9.01M | EBITDA |
| -85.83M | -97.85M | -83.93M | -34.36M | -22.59M | -7.38M | Net Income Common Stockholders |
| -124.42M | -152.46M | -101.35M | -45.37M | -25.86M | -14.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 74.31M | 130.03M | 167.14M | 288.58M | 126.55M | 74.31M | Total Assets |
| 0.00 | 312.70M | 462.36M | 488.43M | 244.04M | 154.58M | Total Debt |
| 0.00 | 93.95M | 105.85M | 0.00 | 204.05M | 102.30M | Net Debt |
| 74.31M | -36.08M | -61.29M | -288.58M | 77.50M | 27.99M | Total Liabilities |
| 0.00 | 127.38M | 145.59M | 91.42M | 269.55M | 163.70M | Stockholders Equity |
| 99.78M | 185.33M | 316.77M | 397.00M | -25.51M | -9.12M |
| Cash Flow | Free Cash Flow | ||||
| -64.59M | -41.09M | -121.95M | -75.03M | -48.93M | -13.08M | Operating Cash Flow |
| -60.30M | -30.22M | -90.58M | -50.85M | -34.58M | 42.00K | Investing Cash Flow |
| 2.55M | -7.71M | -32.29M | -25.64M | -16.28M | -15.18M | Financing Cash Flow |
| 433.00K | 640.00K | 3.58M | 238.15M | 102.19M | 25.70M |
Allbirds Technical Analysis
Negative
6.63
Price Trends
6.77
Negative
7.81
Negative
9.98
Negative
Market Momentum
-0.14
Positive
45.63
Neutral
66.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIRD, the sentiment is Negative. The current price of 6.63 is below the 20-day moving average (MA) of 6.73, below the 50-day MA of 6.77, and below the 200-day MA of 9.98, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 66.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIRD.
Allbirds Risk Analysis
Allbirds disclosed 77 risk factors in its most recent earnings report. Allbirds reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allbirds Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.67B | 6.33 | 57.76% | ― | 3.53% | 24.55% | |
76 Outperform | $18.38B | 19.66 | 39.80% | ― | 19.40% | 32.70% | |
73 Outperform | $8.21B | 13.24 | 15.42% | ― | 12.11% | 19.16% | |
72 Outperform | $113.01B | 24.28 | 34.67% | 1.92% | -4.77% | -5.99% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
45 Neutral | $1.63B | 139.82 | 0.62% | ― | 0.04% | -641.38% | |
41 Neutral | $50.85M | ― | -68.41% | ― | -22.67% | -0.21% |
* Consumer Cyclical Sector Average
Performance Comparison
BIRD
Allbirds
6.41
-10.19
-61.39%
CROX
Crocs
101.10
-25.60
-20.21%
DECK
Deckers Outdoor
121.11
-29.17
-19.41%
FL
Foot Locker
17.17
-6.98
-28.90%
NKE
Nike
76.40
-22.83
-23.01%
SKX
Skechers USA
54.98
-5.28
-8.76%
Allbirds Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: -40.48% | Next Earnings Date: Mar 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with significant highlights such as product launches receiving positive feedback, expansion of international distribution, and improved gross margins. However, these are offset by challenges including revenue decline, store closures, and projected losses in adjusted EBITDA. The company is focused on long-term growth through strategic initiatives and sustainability efforts.Highlights
Strong Execution and Product Launches
Introduced two new products, Tree Glider and Lounger Lift, which received positive consumer response and media coverage. The Lounger Lift was featured on the Today Show's trend report.
Expansion of International Distributor Model
Secured two new distributor agreements covering 12 countries in Latin America and Europe, expected to start in mid-2025.
Gross Margin Improvement
Gross margin expanded by 90 basis points year-over-year to 44.4% due to lower freight and duty costs and healthier inventory positions.
Inventory and Cash Flow Management
Inventory reduced by 28% year-over-year, leading to better cash flow management with operating cash used at $11 million, improved from $16 million in Q2.
Continued Focus on Sustainability
Achieved a 22% reduction in per-unit carbon footprint. The M0.0NSHOT Zero shoe, set to launch next year, was recognized by Time Magazine as one of the best inventions of 2024.
Lowlights
Revenue Decline and Store Closures
Net revenue for Q3 2024 was $43 million, reflecting lower unit sales, impacted by international distributor transitions and 15 retail store closures in the U.S. throughout 2024.
Adjusted EBITDA Loss
Full year adjusted EBITDA loss expected to be between $75 million and $71 million, with Q4 expected to show a loss of $25 million to $21 million.
Lower Revenue Guidance
Full year net revenue guidance lowered to $187 million to $193 million due to structural changes and lower promotional activity expectations compared to last year.
Company Guidance
During the Allbirds Third Quarter 2024 earnings call, the company provided several key metrics and insights into their financial outlook and strategic initiatives. They reported a net revenue of $43 million for Q3, with a gross margin expansion of 90 basis points to 44.4%, driven by lower freight and duty costs and healthier inventory positions. The guidance for full-year net revenue was revised to $187 million to $193 million, with a gross margin expected to be in the range of 43% to 46%. The company also highlighted a significant reduction in SG&A expenses, down 24% year-over-year, and a narrowed adjusted EBITDA loss range of $75 million to $71 million. Additionally, Allbirds completed 15 U.S. store closures in 2024 and transitioned five international regions to a distributor model, impacting year-over-year revenue by $23 million to $28 million. Looking forward, they anticipate lower promotional activity, with strategic marketing efforts planned to boost brand awareness and position the company for growth in the latter half of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.