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Stitch Fix Piotroski F-Score

: 3 (As of Today)
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Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Stitch Fix has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

NAS:SFIX' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 4   Max: 6
Current: 3
1
6

During the past 5 years, the highest Piotroski F-Score of Stitch Fix was 6. The lowest was 1. And the median was 4.

Stitch Fix Piotroski F-Score Historical Data

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stitch Fix Annual Data
Jul16 Jul17 Jul18 Jul19 Jul20
Piotroski F-Score - - 6.00 5.00 3.00

Stitch Fix Quarterly Data
Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 1.00 3.00 4.00 3.00
Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Stitch Fix Piotroski F-Score Distribution

* The bar in red indicates where Stitch Fix's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jan21) TTM:Last Year (Jan20) TTM:
Net Income was -33.903 + -44.467 + 9.541 + -21.039 = $-90 Mil.
Cash Flow from Operations was -58.73 + 63.365 + 57.359 + -51.693 = $10 Mil.
Revenue was 371.726 + 443.408 + 490.423 + 504.087 = $1,810 Mil.
Gross Profit was 151.611 + 199.11 + 219.451 + 216.343 = $787 Mil.
Average Total Assets from the begining of this year (Jan20)
to the end of this year (Jan21) was
(799.728 + 781.629 + 769.429 + 880.224 + 856.022) / 5 = $817.4064 Mil.
Total Assets at the begining of this year (Jan20) was $800 Mil.
Long-Term Debt & Capital Lease Obligation was $134 Mil.
Total Current Assets was $539 Mil.
Total Current Liabilities was $275 Mil.		 Net Income was 7.048 + 7.179 + -0.178 + 11.431 = $25 Mil.

Revenue was 408.893 + 432.149 + 444.815 + 451.784 = $1,738 Mil.
Gross Profit was 184.448 + 190.364 + 201.302 + 202.187 = $778 Mil.
Average Total Assets from the begining of last year (Jan19)
to the end of last year (Jan20) was
(557.051 + 591.482 + 616.066 + 797.328 + 799.728) / 5 = $672.331 Mil.
Total Assets at the begining of last year (Jan19) was $557 Mil.
Long-Term Debt & Capital Lease Obligation was $126 Mil.
Total Current Assets was $486 Mil.
Total Current Liabilities was $220 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Stitch Fix's current Net Income (TTM) was -90. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Stitch Fix's current Cash Flow from Operations (TTM) was 10. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jan20)
=-89.868/799.728
=-0.11237321

ROA (Last Year)=Net Income/Total Assets (Jan19)
=25.48/557.051
=0.04574087

Stitch Fix's return on assets of this year was -0.11237321. Stitch Fix's return on assets of last year was 0.04574087. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Stitch Fix's current Net Income (TTM) was -90. Stitch Fix's current Cash Flow from Operations (TTM) was 10. ==> 10 > -90 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jan21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jan20 to Jan21
=134.341/817.4064
=0.16435032

Gearing (Last Year: Jan20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jan19 to Jan20
=125.925/672.331
=0.18729614

Stitch Fix's gearing of this year was 0.16435032. Stitch Fix's gearing of last year was 0.18729614. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jan21)=Total Current Assets/Total Current Liabilities
=539.321/274.709
=1.96324474

Current Ratio (Last Year: Jan20)=Total Current Assets/Total Current Liabilities
=486.33/220.071
=2.20987772

Stitch Fix's current ratio of this year was 1.96324474. Stitch Fix's current ratio of last year was 2.20987772. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Stitch Fix's number of shares in issue this year was 105.545. Stitch Fix's number of shares in issue last year was 104.638. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=786.515/1809.644
=0.43462416

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=778.301/1737.641
=0.44790667

Stitch Fix's gross margin of this year was 0.43462416. Stitch Fix's gross margin of last year was 0.44790667. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jan20)
=1809.644/799.728
=2.26282436

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jan19)
=1737.641/557.051
=3.11935711

Stitch Fix's asset turnover of this year was 2.26282436. Stitch Fix's asset turnover of last year was 3.11935711. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+0+0+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Stitch Fix has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

Stitch Fix  (NAS:SFIX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.

Stitch Fix Piotroski F-Score Related Terms

Stitch Fix Piotroski F-Score Headlines

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