FIGS (FIGS) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 173.4
• Beta (1Y): 1.02
• Revenue Growth: 3.41%
• EPS Growth: -59.78%
• Country: US
• Employees: 303
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.04
• Shares Outstanding: 154,989,560
• 10 Day Avg. Volume: 2,084,232
• 30 Day Avg. Volume: 2,021,457
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 43.57
• 1Y Price Target: $6.56
• Price Target Upside: -7.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: $7.50 ▲(5.49% Upside)

FIGS' strong technical momentum and positive earnings call sentiment are significant strengths, but these are offset by high valuation concerns and moderate financial performance. The stock's overvaluation and cash flow challenges are key risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for FIGS' products and effective market strategies, supporting long-term business expansion.

International Expansion

Successful international expansion diversifies revenue streams and reduces reliance on the U.S. market, enhancing FIGS' global market position.

Customer Engagement

Growing customer base and engagement reflect strong brand loyalty and effective marketing, crucial for sustaining long-term revenue growth.

Negative Factors

Cash Flow Challenges

Challenges in converting revenue into cash can impact FIGS' ability to invest in growth initiatives and manage financial obligations efficiently.

Tariff Impact

Tariff-related cost pressures could affect profitability, necessitating strategic cost management to maintain margin sustainability over time.

Softness in Non-Scrubwear

Decline in non-scrubwear sales suggests potential vulnerability in product diversification efforts, which may affect overall revenue stability.

FIGS Business Overview & Revenue Model

Company Description

FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States. It designs and sells healthcare apparel and other non-scrub offerings, such as lab coats, under scrubs, outerwear, activewear, loungewear, compression socks footwear, and masks. It also offers sports bras, performance leggings, tops, super-soft pima cotton tops, vests, and jackets. The company markets and sells its products through its digital platform comprising website and mobile app. FIGS, Inc. was founded in 2013 and is headquartered in Santa Monica, California.

How the Company Makes Money

FIGS makes money primarily through the direct-to-consumer sales of its medical apparel products, such as scrubs, lab coats, underscrubs, outerwear, activewear, loungewear, and accessories. The company operates an e-commerce platform, which is its main channel for reaching customers, allowing it to bypass traditional retail markups and offer competitive pricing. FIGS focuses on building brand loyalty through high-quality products and community engagement with healthcare professionals. Additionally, the company benefits from customer word-of-mouth and targeted marketing strategies, which contribute to its growing customer base and revenue. While FIGS does not currently report significant partnerships as a major revenue factor, its innovative product offerings and strong consumer base are key contributors to its financial success.

FIGS Financial Statement Overview

Summary

FIGS shows consistent revenue growth and strong gross margins, but faces challenges with low net profit margin and ROE. Cash flow management needs improvement, particularly in free cash flow growth.

Income Statement

FIGS has shown consistent revenue growth over the years, with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.5%. The gross profit margin remains strong at approximately 67%, indicating efficient production and pricing strategies. However, the net profit margin is relatively low at 1.26%, suggesting challenges in controlling operating expenses or other costs. The EBIT and EBITDA margins have improved in the TTM, but remain modest, indicating potential areas for operational efficiency improvements.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.13, indicating prudent financial leverage. The return on equity (ROE) has improved to 1.84% in the TTM, reflecting better utilization of equity capital. The equity ratio is healthy, suggesting a solid capital structure. However, the ROE is still below industry averages, indicating room for improvement in profitability.

Cash Flow

FIGS has experienced a decline in free cash flow growth, with a negative rate of -34.57% in the TTM, which could indicate challenges in converting revenue into cash. The operating cash flow to net income ratio is 0.64, suggesting moderate efficiency in cash generation from operations. The free cash flow to net income ratio is relatively high at 0.80, indicating that a significant portion of net income is being converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	569.58M	555.56M	545.65M	505.83M	419.59M	263.11M
Gross Profit	382.93M	375.62M	376.96M	354.46M	301.22M	190.22M
EBITDA	18.09M	8.96M	36.99M	39.59M	11.52M	58.89M
Net Income	7.18M	2.72M	22.64M	21.19M	-9.56M	49.76M
Balance Sheet
Total Assets	517.12M	509.79M	473.21M	395.06M	311.75M	133.85M
Cash, Cash Equivalents and Short-Term Investments	238.84M	245.11M	246.69M	159.78M	195.37M	58.13M
Total Debt	51.70M	53.03M	47.11M	19.16M	0.00	0.00
Total Liabilities	120.59M	132.66M	96.36M	87.33M	66.18M	36.18M
Stockholders Equity	396.53M	377.13M	376.85M	307.74M	245.57M	97.68M
Cash Flow
Free Cash Flow	39.88M	64.14M	84.57M	-40.68M	63.73M	19.49M
Operating Cash Flow	49.81M	81.16M	100.92M	-35.33M	66.44M	21.75M
Investing Cash Flow	-83.24M	-94.92M	-117.19M	-5.85M	-2.71M	-2.26M
Financing Cash Flow	-47.53M	-44.77M	670.00K	3.52M	75.57M	294.00K

FIGS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIGS, the sentiment is Positive. The current price of 7.11 is above the 20-day moving average (MA) of 6.98, above the 50-day MA of 6.83, and above the 200-day MA of 5.57, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIGS.

FIGS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIII	71 Outperform	$1.16B	6.81	11.32%	―	1.19%	1.62%
FIGS	68 Neutral	$1.16B	173.41	1.80%	―	3.41%	-59.78%
SGC	66 Neutral	$166.07M	20.42	4.22%	5.38%	4.02%	-24.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HBI	55 Neutral	$2.44B	15.52	154.00%	―	-27.88%	―
UA	47 Neutral	$2.14B	21.34	5.50%	―	-8.02%	―
UAA	46 Neutral	$2.14B	21.90	5.50%	―	-8.02%	―

FIGS Corporate Events

FIGS Reports Strong Q2 2025 Financial Results

On August 7, 2025, FIGS, Inc. released its second quarter 2025 financial results, reporting a 5.8% increase in net revenues to $152.6 million, driven by higher order values and increased customer orders. The company achieved a net income margin of 4.7% and an adjusted EBITDA margin of 12.9%, surpassing expectations on both top and bottom lines. Despite a slight decrease in gross margin due to higher inventory reserves and tariffs, FIGS reduced operating expenses by 3.5% year over year. The company also saw a 4.1% increase in active customers, reflecting strong demand and strategic marketing efforts. FIGS raised its full-year 2025 financial outlook, citing confidence in its core business growth and cost mitigation strategies.

FIGS Holds Annual Stockholders Meeting via Webcast

On June 4, 2025, FIGS, Inc. held its annual meeting of stockholders via live webcast, where a quorum was established with over 95% of the combined voting power of its Class A and Class B common stock. During the meeting, stockholders elected three Class I directors to serve until 2028, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers on a non-binding basis.