FIGS (FIGS) AI Stock Analysis

• Market Cap: $789.85M
• Dividend Yield: N/A
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 332.9
• Beta (1Y): 0.75
• Revenue Growth: 1.82%
• EPS Growth: -87.94%
• Country: US
• Employees: 303
• Sector: Consumer Cyclical
• Sector Strength: 49
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 154,236,570
• 10 Day Avg. Volume: 2,310,683
• 30 Day Avg. Volume: 2,483,665
• 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: $5.25
• Price Target Upside: 8.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

FIGS is financially stable, showcasing strong revenue growth and robust balance sheet metrics, but it faces significant challenges in profitability and cash flow sustainability. The technical indicators suggest a bearish trend with potential for stabilization. Valuation appears stretched, indicating limited upside potential in the short term. The mixed outlook from the earnings call, characterized by growth opportunities and strategic challenges, further tempers the overall score.

Positive Factors

Business Strategy

For a founder-led organization with a long-term focus, there may be some appeal to turning around the business as a private company.

Customer Acquisition

Opportunity for new customer acquisition is clear. With unaided/aided awareness among healthcare professionals at just ~20%/~50%, physical retail does present a clear opportunity to tap into a new customer base.

Market Perception

The stock quickly rallied near the price quoted in the report, indicating the market may feel a higher premium could be warranted in the event the offer is confirmed.

Negative Factors

Financial Performance

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

Guidance and Forecasting

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

Sales and Margins

Sales and margins remain pressured.

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 exhibits strong revenue growth and maintains healthy gross margins, but faces challenges in converting revenue growth into net income, as evidenced by the declining net profit margin. The balance sheet remains strong with low leverage, but cash flow performance has weakened, suggesting potential liquidity issues. Overall, FIGS 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: Neutral
• Last Price: 4.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIGS, the sentiment is Neutral. The current price of 4.86 is above the 20-day moving average (MA) of 4.67, below the 50-day MA of 5.24, and below the 200-day MA of 5.62, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 83.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FIGS.

FIGS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LULU	86 Outperform	$43.34B	24.67	42.42%	―	10.84%	76.07%
SKX	73 Outperform	$8.63B	13.92	15.42%	―	12.11%	19.16%
COLM	63 Neutral	$4.25B	20.01	12.01%	1.57%	-3.35%	-6.09%
NKE	63 Neutral	$97.33B	21.87	31.93%	2.30%	-7.16%	-12.12%
FIGS	61 Neutral	$789.85M	332.88	0.72%	―	1.82%	-87.94%
Sector *	59 Neutral	$12.29B	11.58	0.14%	3.71%	1.32%	-21.01%
UA	52 Neutral	$2.67B	―	-6.12%	―	-7.47%	-131.70%

FIGS Corporate Events

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.