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Relative to Consumer Discretionary Sector Median (N=442)
Metric
FIGS
Benchmark
P/E Ratio
159.9x
+554%
EV/EBITDA
209.7x
+4176%
Price / Book
5.1x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-83.8%
$2.32Spot: $14.31
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
3.2%
Sector: 6.2%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, FIGS, Inc. (FIGS) receives a "Hold" rating with a composite score of 51.3/100, ranked #931 out of 4446 stocks. Key factor scores: Quality 50/100, Value 45/100, Momentum 76/100. This is quantitative analysis only — not investment advice.
FIGS, Inc. (FIGS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIGS, Inc. Do?
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. FIGS, Inc. (FIGS) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Apparel industry. The company is led by CEO Catherine Spear and employs approximately 310 people. With a market capitalization of $2.4B, FIGS is one of the notable companies in the Consumer Discretionary sector.
FIGS, Inc. (FIGS) Stock Rating — Hold (April 2026)
As of April 2026, FIGS, Inc. receives a Hold rating with a composite score of 51.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FIGS ranks #931 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, FIGS, Inc. ranks #64 of 442 stocks, placing it in the top quartile of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FIGS Stock Price and 52-Week Range
FIGS, Inc. (FIGS) currently trades at $14.31. The stock lost $0.17 (1.2%) in the most recent trading session. The 52-week high for FIGS is $17.48, which means the stock is currently trading -18.2% from its annual peak. The 52-week low is $3.56, putting the stock 301.3% above its annual trough. Recent trading volume was 290K shares, suggesting relatively thin trading activity.
Is FIGS Overvalued or Undervalued? — Valuation Analysis
FIGS, Inc. (FIGS) carries a value factor score of 45/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 159.94x, compared to the Consumer Discretionary sector average of 24.47x — a premium of 554%. The price-to-book ratio stands at 5.13x, versus the sector average of 1.99x. The price-to-sales ratio is 3.94x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, FIGS trades at 209.72x EV/EBITDA, versus 4.91x for the sector.
Overall, FIGS's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FIGS, Inc. Profitability — ROE, Margins, and Quality Score
FIGS, Inc. (FIGS) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 3.2%, compared to the Consumer Discretionary sector average of 6.2%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.4% versus the sector average of 2.5%.
On a margin basis, FIGS, Inc. reports gross margins of 67.9%, compared to 36.9% for the sector. The operating margin is 1.6% (sector: 3.8%). Net profit margin stands at 2.3%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 5.2% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FIGS Debt, Balance Sheet, and Financial Health
FIGS, Inc. has a debt-to-equity ratio of 33.0%, compared to the Consumer Discretionary sector average of 89.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.94x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $46M.
FIGS has a beta of 1.17, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for FIGS, Inc. is 51/100, reflecting average volatility within the normal range for its sector.
FIGS, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIGS, Inc. reported revenue of $569M and earnings per share (EPS) of $0.21. Net income for the quarter was $14M. Gross margin was 67.9%. Operating income came in at $11M.
In FY 2025, FIGS, Inc. reported revenue of $631M and earnings per share (EPS) of $0.21. Net income for the quarter was $34M. Gross margin was 66.5%. Revenue grew 13.6% year-over-year compared to FY 2024. Operating income came in at $38M.
In Q3 2025, FIGS, Inc. reported revenue of $152M and earnings per share (EPS) of $0.05. Net income for the quarter was $9M. Gross margin was 69.9%. Revenue grew 8.2% year-over-year compared to Q3 2024. Operating income came in at $10M.
In Q2 2025, FIGS, Inc. reported revenue of $153M and earnings per share (EPS) of $0.04. Net income for the quarter was $7M. Gross margin was 67.0%. Revenue grew 5.8% year-over-year compared to Q2 2024. Operating income came in at $10M.
Over the past 8 quarters, FIGS, Inc. has demonstrated a growth trajectory, with revenue expanding from $144M to $569M. Investors analyzing FIGS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FIGS Dividend Yield and Income Analysis
FIGS, Inc. (FIGS) does not currently pay a dividend. This is common among smaller companies in the Apparel industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.
FIGS Momentum and Technical Analysis Profile
FIGS, Inc. (FIGS) has a momentum factor score of 76/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FIGS vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing FIGS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FIGS vs S&P 500 (SPY) comparison to assess how FIGS, Inc. stacks up against the broader market across all factor dimensions.
FIGS Next Earnings Date
No upcoming earnings date has been announced for FIGS, Inc. (FIGS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FIGS? — Investment Thesis Summary
FIGS, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 76/100, suggesting the trend favors buyers.
In summary, FIGS, Inc. (FIGS) earns a Hold rating with a composite score of 51.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FIGS stock.
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Institutional Research Dossier
FIGS, Inc. (FIGS) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on FIGS, Inc. The company's direct-to-consumer model for healthcare apparel has demonstrated strong revenue growth historically, but recent deceleration and profitability concerns warrant caution. While FIGS boasts a high gross margin and a debt-free balance sheet, its elevated valuation multiples relative to the consumer discretionary sector and negative free cash flow generation raise questions about its current market price. The company's success hinges on its ability to maintain brand loyalty, expand its product offerings, and efficiently manage its operating expenses to drive sustainable profitability.
The Hold rating reflects a balanced view of FIGS' potential and its challenges. The company's strong brand and innovative approach to healthcare apparel provide a foundation for future growth. However, the current valuation appears rich, and the company needs to demonstrate improved profitability and cash flow generation to justify a more bullish outlook. Investors should closely monitor FIGS' ability to navigate increasing competition and maintain its premium pricing strategy.
Business Strategy & Overview
FIGS operates as a direct-to-consumer (DTC) healthcare apparel and lifestyle company. Its core business revolves around designing, manufacturing, and selling scrubs and other related products directly to healthcare professionals through its website and mobile app. This DTC model allows FIGS to control its brand image, customer experience, and pricing strategy, bypassing traditional retail channels. The company's strategy focuses on creating high-quality, comfortable, and stylish apparel that caters specifically to the needs of healthcare workers.
FIGS differentiates itself through its emphasis on product innovation and design. The company invests in research and development to create proprietary fabrics and features that enhance the functionality and comfort of its apparel. It also collaborates with healthcare professionals to gather feedback and incorporate their insights into its product development process. This customer-centric approach has helped FIGS build a strong brand reputation and cultivate a loyal customer base.
Beyond scrubs, FIGS has expanded its product offerings to include lab coats, under scrubs, outerwear, activewear, loungewear, compression socks, footwear, and masks. This diversification strategy aims to increase its share of wallet among existing customers and attract new customers who may be interested in its non-scrub offerings. The company also focuses on building a strong online community through social media and other digital channels to engage with its customers and promote its brand.
FIGS' strategic positioning within the healthcare apparel market is centered on providing a premium alternative to traditional scrub brands. The company's focus on quality, design, and customer experience allows it to command higher prices and maintain strong gross margins. However, this premium pricing strategy also makes it vulnerable to competition from lower-priced alternatives and potential shifts in consumer preferences. The company's future success depends on its ability to maintain its brand image, innovate its product offerings, and effectively manage its operating expenses.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.2%
Sector: 3.3%
+57% VS SCTR
Economic Moat Analysis
FIGS possesses a narrow economic moat, primarily derived from its brand intangible asset and, to a lesser extent, switching costs. The company has successfully cultivated a strong brand reputation within the healthcare community, associating its products with quality, comfort, and style. This brand recognition allows FIGS to command premium pricing and maintain a loyal customer base. The strength of the FIGS brand is evident in its high gross margins, which significantly exceed the sector average.
The switching costs associated with FIGS' products are moderate. While healthcare professionals may develop a preference for FIGS' apparel due to its superior comfort and fit, the cost of switching to alternative brands is relatively low. However, the time and effort required to find a suitable replacement, coupled with the potential for dissatisfaction with lower-quality alternatives, can create some degree of customer stickiness. The company's focus on building a strong online community and fostering customer engagement further enhances these switching costs.
FIGS does not possess a wide economic moat due to the relatively low barriers to entry in the healthcare apparel market. While the company has established a strong brand and differentiated its products through innovation and design, other companies can replicate its business model and offer similar products. The increasing competition in the market, particularly from established apparel brands and emerging DTC players, poses a threat to FIGS' market share and profitability.
The company's ability to widen its economic moat will depend on its continued investment in brand building, product innovation, and customer experience. By consistently delivering high-quality, innovative products and fostering a strong sense of community among its customers, FIGS can strengthen its brand reputation and increase switching costs. However, the company must also effectively manage its operating expenses and maintain its premium pricing strategy to sustain its profitability in the face of increasing competition.
Financial Health & Profitability
FIGS' financial health presents a mixed picture. The company boasts a strong balance sheet with no debt and a current ratio of 4.94, indicating ample liquidity to meet its short-term obligations. However, its profitability and cash flow generation are areas of concern. While the company's gross margin of 67.9% is significantly higher than the sector average of 36.9%, its operating margin of 1.6% and net margin of 2.3% are relatively low, suggesting inefficiencies in its operating expenses.
The company's revenue growth has decelerated in recent periods. While the company's revenue grew by 5.2% in the most recent TTM period, this is a significant slowdown compared to its historical growth rates. The company's net income has also fluctuated significantly, with a net income of $34.25M in the most recent TTM period, compared to $2.72M in the prior year. The company's free cash flow is negative, at $-15.22M, indicating that it is not generating enough cash from its operations to cover its capital expenditures.
Analyzing the quarterly financial history reveals a trend of declining operating margins. While the company's gross margins have remained relatively stable, its operating margins have fluctuated significantly, with a low of -6.2% in Q3 FY2024 and a high of 7.0% in Q3 FY2023. This volatility in operating margins suggests that the company is struggling to control its operating expenses and maintain its profitability.
Compared to the consumer discretionary sector, FIGS' ROE of 3.2% is lower than the sector average of 5.8%. This indicates that the company is not generating as much profit from its equity as its peers. The company's debt-to-equity ratio of 33.00 is lower than the sector average of 91.00, reflecting its conservative capital structure. However, its negative free cash flow and declining operating margins raise concerns about its long-term financial sustainability.
Valuation Assessment
FIGS' valuation appears stretched based on several key metrics. The company's P/E ratio of 67.7x is significantly higher than the consumer discretionary sector average of 28.0x, suggesting that investors are paying a premium for its earnings. Similarly, its EV/EBITDA ratio of 15.5x is also higher than the sector average of 5.3x, indicating that the company is expensive relative to its earnings before interest, taxes, depreciation, and amortization.
Given the company's decelerating revenue growth and negative free cash flow, its current valuation multiples seem difficult to justify. While FIGS has demonstrated strong revenue growth historically, its recent performance suggests that its growth rate is slowing down. The company's negative free cash flow also raises concerns about its ability to fund its future growth initiatives and generate returns for its shareholders.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of FIGS' stock. However, given the company's negative free cash flow and uncertain future growth prospects, it is likely that a DCF analysis would yield a valuation that is lower than its current market price. The company's valuation is highly dependent on its ability to improve its profitability and generate positive free cash flow in the future.
The market's current valuation of FIGS seems to be predicated on the expectation of a significant turnaround in its financial performance. Investors appear to be betting that the company can successfully execute its growth strategy, improve its profitability, and generate positive free cash flow. However, given the challenges facing the company, including increasing competition and declining operating margins, there is a significant risk that it will not be able to meet these expectations.
Risk & Uncertainty
FIGS faces several key risks that could negatively impact its business and financial performance. One of the most significant risks is increasing competition in the healthcare apparel market. The company faces competition from established apparel brands, emerging DTC players, and lower-priced alternatives. This increasing competition could put pressure on its pricing strategy and market share.
Another risk is the potential for changes in consumer preferences. FIGS' success is based on its ability to cater to the evolving needs and preferences of healthcare professionals. If the company fails to anticipate and adapt to these changes, it could lose market share to competitors who are better able to meet the needs of its target market.
The company's reliance on its DTC model also poses a risk. While the DTC model allows FIGS to control its brand image and customer experience, it also makes it vulnerable to disruptions in its online sales channels. Any technical issues with its website or mobile app, or any changes in search engine algorithms or social media policies, could negatively impact its sales and profitability.
FIGS' relatively concentrated customer base also presents a risk. While the company does not disclose the specific concentration of its customer base, it is likely that a significant portion of its revenue comes from a relatively small number of customers. If the company were to lose one or more of these key customers, it could negatively impact its sales and profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFIGS' strong brand and direct-to-consumer model provide a competitive advantage, allowing it to command premium pricing and maintain high gross margins.
BULL VIEWThe company's expansion into new product categories and international markets offers significant growth opportunities, driving future revenue and profitability.
The Bear Case
BEAR VIEWFIGS' high valuation multiples are unsustainable given its decelerating revenue growth and negative free cash flow, making the stock overvalued.
BEAR VIEWIncreasing competition in the healthcare apparel market will erode FIGS' market share and put pressure on its pricing strategy, leading to lower profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FIGS and 4,400+ other equities.
FIGS, Inc. exhibits a 1562% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.4%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
67.9%
Sector: 36.9%
Operating Margin
Core business profitability
1.6%
Sector: 3.8%
Net Margin
Bottom-line profitability
2.3%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
