FIGS Inc. Class A Common Stock (FIGS)

FairStock Score: 45/100 — MIXED

Key Financials

Strengths

• Generates $46 million in annual free cash flow (1.7% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.14, providing financial flexibility
• Altman Z-Score of 12.6 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 33.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($3) with negative 373% margin of safety—limited downside protection

AI Analysis

FIGS Inc. Class A Common Stock is a small-cap consumer cyclical company valued at $2.6 billion. The business generates $631 million in annual revenue with a 2.9% net margin and $46 million in free cash flow. From a quality standpoint, FIGS shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 12.6 confirms fortress-level solvency. On valuation, the stock is commanding a steep 84.8x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 33.0% and profit growth of 881.8%. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

FIGS's 33% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $46 million in annual free cash flow (1.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 85x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer