National Vision Holdings, headquartered in Duluth, Georgia, operates retail optical brands and an e-commerce platform, employing nearly 14,000 people since its IPO on October 26, 2017. Its subsidiary, FirstSight Vision Services, offers individual vision plans in California, while AC Lens manages e-commerce operations.
Based on our analysis, National Vision Holdings has been assigned an undervalued rating of 4 out of 5 stars by Cashu due to several key financial ratios that indicate the company is trading below its intrinsic value.
The price-to-book (PB) ratio for National Vision stands at 0.97, significantly lower than the sector average of 1.97. A PB ratio below 1 suggests that the stock may be undervalued, as it indicates that the market price is less than the company's book value per share. This discrepancy may present an attractive opportunity for investors.
The company's net profit margin is reported at -1.56, compared to the sector average of 0.09. A negative profit margin indicates that the company is currently experiencing losses, which can be seen as a concern. However, it also suggests potential for recovery as the company works towards profitability.
Additionally, National Vision's return on equity (ROE) ratio is -3.49, while the sector average is 1.09. A negative ROE indicates that the company is not generating profit from its shareholders' equity, but it may also reflect short-term challenges that could be resolved, leading to improved financial performance.
Finally, the return on assets (ROA) ratio is -1.42, compared to the sector's -0.10. This negative ROA suggests that the company is currently not utilizing its assets effectively to generate earnings, yet it also points to the potential for operational improvements in the future.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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