FIGS (FIGS) AI Stock Analysis

• Market Cap: $619.20M
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 261.0
• Beta (1Y): 0.97
• Revenue Growth: 1.82%
• EPS Growth: -87.94%
• Country: US
• Employees: 303
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 154,236,570
• 10 Day Avg. Volume: 1,679,259
• 30 Day Avg. Volume: 2,077,347
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.27
• Price to Cash Flow (P/CF): 5.80
• P/FCF Ratio: 6.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.60
• Price Target Upside: 20.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

FIGS' overall stock score reflects its strong financial stability and growth potential, tempered by challenges in profitability and valuation concerns. The technical analysis indicates bearish momentum, and the earnings call highlights mixed sentiment with strategic adjustments for future growth. The recent board appointment is a positive corporate event, suggesting potential for strategic improvements.

Positive Factors

Brand positioning

Elevating the brand is paramount. Although there are medical supply and uniform stores, other scrubs brands largely do not have individual locations. This puts FIGS in a unique position to define the category in a fresh perspective, similar to what the brand did online.

Potential acquisition

A take private, were it to occur, could be sensible given the company is in the midst of a turnaround.

Negative Factors

Consumer demand

FIGS has been impacted by a weakening consumer with revenue flat year over year.

Financial performance

Shares are indicating down mid-teens following a Q3 miss and a downward revision to FY24 guidance.

FIGS Business Overview & Revenue Model

Company Description

FIGS (FIGS) is a healthcare apparel company that specializes in designing and selling high-quality, comfortable, and stylish medical scrubs and other healthcare-related clothing. Founded in 2013, FIGS aims to revolutionize the healthcare apparel industry by providing healthcare professionals with innovative and performance-oriented apparel. The company's product line includes scrub tops, scrub pants, lab coats, underscrubs, and other accessories tailored to meet the needs of healthcare workers.

How the Company Makes Money

FIGS makes money primarily through the direct-to-consumer sales of its healthcare apparel products via its e-commerce platform. The company leverages a digital-first business model, which allows it to maintain a strong online presence and reach a wide audience of healthcare professionals. FIGS generates revenue by selling its diverse range of products, including scrubs, lab coats, and accessories, directly to consumers who value the brand's emphasis on quality, comfort, and style. The company also benefits from its brand loyalty and strong community engagement, often partnering with healthcare organizations and influencers to expand its market reach and enhance its brand visibility.

FIGS Financial Statement Overview

Summary

FIGS displays strong revenue growth and healthy gross margins but faces challenges in converting revenue into net income, with a declining net profit margin. Despite low leverage, cash flow performance has weakened, suggesting potential liquidity issues. The company is financially stable but must address profitability and cash flow sustainability.

Income Statement

FIGS has demonstrated consistent revenue growth over the years, with a strong gross profit margin of 67.6% in 2024. However, the net profit margin has decreased to 0.5% from 4.1% in 2023, indicating pressure on net income generation despite revenue growth.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.14, indicating low leverage. Return on equity decreased from 6.0% in 2023 to 0.7% in 2024, highlighting a decline in profitability. The equity ratio remains strong at 74.0%, suggesting financial stability.

Cash Flow

FIGS has a positive operating cash flow, though it has decreased from the previous year. The free cash flow to net income ratio stands at 23.6, suggesting solid cash flow generation relative to net income. However, free cash flow growth has turned negative, indicating cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
555.56M	545.65M	505.83M	419.59M	263.11M
	Gross Profit
375.62M	376.96M	354.46M	301.22M	190.22M
	EBIT
2.27M	34.05M	37.67M	10.98M	57.94M
	EBITDA
2.27M	36.99M	39.59M	11.52M	58.89M
	Net Income Common Stockholders
2.72M	22.64M	21.19M	-9.56M	49.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
245.11M	246.69M	159.78M	195.37M	58.13M
	Total Assets
509.79M	473.21M	395.06M	311.75M	133.85M
	Total Debt
53.03M	47.11M	19.16M	0.00	0.00
	Net Debt
-32.62M	-97.06M	-140.61M	-195.37M	-58.13M
	Total Liabilities
132.66M	96.36M	87.33M	66.18M	36.18M
	Stockholders Equity
377.13M	376.85M	307.74M	245.57M	97.68M
Cash Flow		Free Cash Flow
64.14M	84.57M	-40.68M	63.73M	19.49M
	Operating Cash Flow
81.16M	100.92M	-35.33M	66.44M	21.75M
	Investing Cash Flow
-94.92M	-117.19M	-5.85M	-2.71M	-2.26M
	Financing Cash Flow
-44.77M	670.00K	3.52M	75.57M	294.00K

FIGS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIGS, the sentiment is Negative. The current price of 3.81 is below the 20-day moving average (MA) of 4.24, below the 50-day MA of 4.68, and below the 200-day MA of 5.54, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIGS.

FIGS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIII	67 Neutral	$1.08B	5.75	11.99%	―	2.66%	14.16%
FIGS	60 Neutral	$619.20M	260.96	0.72%	―	1.82%	-87.94%
AIN	60 Neutral	$1.92B	22.43	9.20%	1.69%	7.20%	-21.29%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
UA	57 Neutral	$2.40B	―	-6.12%	―	-7.47%	-131.70%
UFI	52 Neutral	$96.34M	―	-12.60%	―	1.57%	38.38%
OXM	47 Neutral	$672.20M	7.70	15.71%	5.98%	-3.49%	52.67%

FIGS Corporate Events

FIGS Appoints Jerry Jao as Independent Director

On April 1, 2025, FIGS, Inc., a leading healthcare apparel brand, appointed Jerry Jao as an independent director to its board, also naming him Chair of the Audit Committee and a member of the Compensation Committee. Jao, with extensive experience in marketing, technology, and finance, is expected to contribute valuable insights to accelerate FIGS’ growth and enhance its board’s functionality, particularly in digital marketing and AI solutions.

FIGS Expands Share Repurchase Program by $50 Million

On February 27, 2025, FIGS announced a $50 million increase in its share repurchase program, bringing the total authorization to $100 million. This move is part of the company’s strategy to return value to shareholders and reflects confidence in its financial position. The company reported mixed financial results for 2024, with a 1.8% increase in net revenues driven by existing customer orders, despite a decrease in average order value. International sales saw significant growth, while U.S. revenues slightly declined. Operating expenses rose due to higher costs at a new fulfillment center and marketing expenses. FIGS plans to focus on product innovation and reducing reliance on promotions to support long-term brand health.