Warby Parker (WRBY) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: N/A
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): 6978.9
• Beta (1Y): 1.40
• Revenue Growth: 14.55%
• EPS Growth: N/A
• Country: US
• Employees: 2,218
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.12
• Shares Outstanding: 105,727,104
• 10 Day Avg. Volume: 8,447,858
• 30 Day Avg. Volume: 4,830,926
• PEG Ratio: 2.09
• Price to Book (P/B): 8.57
• Price to Sales (P/S): 3.78
• P/FCF Ratio: 83.96
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 4.01
• Enterprise Value/Gross Profit: 7.37
• Enterprise Value/Ebitda: 77.89
• 1Y Price Target: $26.36
• Price Target Upside: -0.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.37
• Revenue Forecast (FY): $873.17M

• Rating: 60 Neutral
• Price Target: $29.00 ▲(9.35% Upside)

Warby Parker's overall stock score is driven by strong technical momentum and strategic partnerships, particularly in AI innovation. However, the high P/E ratio and challenges in achieving profitability weigh heavily on the score. The absence of a dividend yield and concerns over macroeconomic impacts further contribute to a cautious outlook.

Positive Factors

Strategic Partnerships

These partnerships enhance Warby Parker's innovation capabilities and market position, potentially driving long-term growth in the tech-integrated eyewear sector.

Revenue Growth

Strong revenue growth, particularly in retail, indicates robust demand and effective expansion strategies, supporting long-term business sustainability.

Retail Expansion

Expanding retail presence and productivity improvements suggest enhanced customer reach and operational efficiency, bolstering future revenue potential.

Negative Factors

Profitability Challenges

Ongoing profitability issues and cash flow constraints may limit Warby Parker's ability to reinvest and grow, impacting long-term financial health.

Macro Economic Concerns

Economic uncertainty can dampen consumer spending, particularly among younger demographics, potentially affecting sales and growth prospects.

Program Adjustments

Adjusting or retiring programs may indicate strategic misalignment or shifting consumer preferences, potentially impacting customer acquisition and retention.

Warby Parker Business Overview & Revenue Model

Company Description

Warby Parker Inc. provides eyewear products. It offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, and contact lenses, as well as accessories, including cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray. The company also offers eye exams and vision tests directly to consumers through its retail stores, website, and mobile apps. As of May 16, 2022, it had 160 retail stores in the United States and Canada. The company was formerly known as JAND, Inc. and changed its name to Warby Parker Inc. in June 2021. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

How the Company Makes Money

Warby Parker primarily generates revenue through the sale of prescription eyeglasses, sunglasses, and contact lenses. Its direct-to-consumer model allows the company to sell products at competitive prices, often significantly lower than traditional optical retailers. Key revenue streams include the sale of frames, lenses, and accessories, as well as the provision of eye exams in its retail locations. Additionally, the company has developed partnerships with various organizations and initiatives that enhance its brand visibility and customer reach. Warby Parker's innovative Home Try-On program, which allows customers to test frames at home before purchasing, also contributes to higher conversion rates and customer satisfaction, ultimately boosting sales.

Warby Parker Financial Statement Overview

Summary

Warby Parker is experiencing moderate revenue growth but continues to face challenges in achieving profitability. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Cash flow generation is under pressure, with a significant decline in free cash flow. The company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

Warby Parker has shown a modest revenue growth rate of 3.56% in the TTM, indicating a positive trend. However, the company is struggling with profitability as evidenced by negative net profit and EBIT margins. The gross profit margin remains healthy at 54.49%, but the net profit margin is negative, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.63, indicating a moderate level of leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio stands at 52.28%, showing a reasonable proportion of equity financing.

Cash Flow

Warby Parker's free cash flow has decreased by 27.83% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.86, indicating that operating cash flows are relatively strong compared to net income. However, the free cash flow to net income ratio is 0.45, suggesting limited free cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	850.58M	771.32M	669.76M	598.11M	540.80M	393.72M
Gross Profit	462.66M	426.83M	365.22M	341.06M	317.75M	231.94M
EBITDA	43.79M	15.75M	-33.44M	-78.03M	-121.70M	-37.26M
Net Income	717.00K	-20.39M	-63.20M	-110.39M	-144.27M	-55.92M
Balance Sheet
Total Assets	706.92M	676.49M	580.31M	568.71M	440.65M	444.75M
Cash, Cash Equivalents and Short-Term Investments	280.36M	254.16M	216.89M	208.59M	256.42M	314.08M
Total Debt	232.53M	225.35M	174.46M	173.38M	0.00	0.00
Total Liabilities	337.30M	336.42M	278.52M	282.06M	154.65M	136.34M
Stockholders Equity	369.63M	340.07M	301.79M	286.65M	286.00M	308.41M
Cash Flow
Free Cash Flow	37.79M	34.71M	7.32M	-49.81M	-80.51M	12.69M
Operating Cash Flow	107.44M	98.74M	60.99M	10.37M	-31.99M	32.76M
Investing Cash Flow	-69.65M	-66.03M	-54.67M	-60.18M	-48.51M	-20.07M
Financing Cash Flow	-8.48M	4.96M	2.87M	3.29M	23.00M	245.94M

Warby Parker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRBY, the sentiment is Positive. The current price of 26.52 is above the 20-day moving average (MA) of 23.17, above the 50-day MA of 20.98, and above the 200-day MA of 21.63, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRBY.

Warby Parker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRBY	60 Neutral	$3.22B	6,978.95	0.20%	―	14.55%	―
BLCO	55 Neutral	$6.01B	-19.59	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUCY	35 Underperform	$7.38M	-0.53	-74.10%	―	53.22%	72.69%

Warby Parker Corporate Events

Warby Parker Partners with Google on AI Glasses

Warby Parker and Google have announced their collaboration on developing lightweight AI glasses, which are expected to launch in 2026. This partnership marks a significant step in Warby Parker’s product innovation strategy, potentially impacting its market position and offering new opportunities for stakeholders in the tech and eyewear industries.