In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Kidpik's Net-Net Working Capital for the quarter that ended in Sep. 2024 was $-3.25.
The industry rank for Kidpik's Net-Net Working Capital or its related term are showing as below:
PIKM's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 5.98 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Kidpik (OTCPK:PIKM) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Kidpik Net-Net Working Capital Related Terms
Kidpik Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Kidpik's Net-Net Working Capital can be seen below:
* 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.
PIKM vs AMZN, BABA, PDD: Net-Net Working Capital Comparison
For the Internet Retail subindustry, Kidpik's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Kidpik Price-to-Net-Net-Working-Capital vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Kidpik's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Kidpik's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-3.25 mean?
Kidpik (PIKM) has a Net-Net Working Capital of $-3.25 as of Sep. 2024. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Kidpik
Is Kidpik's Net-Net Working Capital too high?
Kidpik's current Net-Net Working Capital is $-3.25. Overall, Kidpik has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Kidpik's Net-Net Working Capital compare to AMZN and BABA?
Kidpik's Net-Net Working Capital of $-3.25 can be compared against companies in the Retail - Cyclical industry. The industry median Net-Net Working Capital is 5.98. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Retail - Cyclical company?
The median Net-Net Working Capital among Retail - Cyclical companies is 5.98, based on 328 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Kidpik For the Retail - Cyclical industry, the median Net-Net Working Capital is 5.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kidpik's current Net-Net Working Capital is $-3.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kidpik stock overvalued right now?
Kidpik (PIKM) has a current Net-Net Working Capital of $-3.25. The current Net-Net Working Capital is $-3.25. Kidpik's overall GF Score™ is 16/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Kidpik (PIKM), the current Net-Net Working Capital is $-3.25 as of Sep. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Kidpik Corp is a subscription-based e-commerce business geared toward kid products for girl's and boy's apparel, footwear, and accessories. The Company serves its customers through the clothing subscription box business, its retail website and 3rd party websites. It makes shopping easy, convenient, and accessible for parents by delivering, in a box, fashionable and personalized outfits for kids. kidpik provides kids clothing subscription boxes for boys and girls of varying sizes from toddler to youth that includes mix-and-match coordinated outfits that are personalized based on each member's style preferences. The company focuses on providing entire outfits from head-to-toe (including shoes) by designing each seasonal collection in-house from concept to box.
16GF Score
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