Bark, Inc. (NYSE: BARK)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0001819574
Market Cap 133.07 Mn
P/B 1.64
P/E -4.11
P/S 0.31
ROIC (Qtr) -23.99
Div Yield % 0.00
Rev 1y % (Qtr) -22.14
Total Debt (Qtr) 38.31 Mn
Debt/Equity (Qtr) 0.47
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About

Bark, Inc., also known as BARK, is a company that operates in the pet industry, specifically focusing on creating products and services for dogs and their owners. The company's mission is to "make all dogs happy" and it achieves this through its two main business segments: Direct-to-Consumer (DTC) and Commerce. The DTC segment is the primary source of revenue for BARK, accounting for 89% of the company's total revenue in fiscal 2024. This segment includes the sale of BARK's products, such as toys, treats, and chews, directly to consumers through...

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Investment thesis

Bull case

  • Healthy cash reserves of 21.68M provide 4.03x coverage of short-term debt 5.38M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 186.90M provides 4.88x coverage of total debt 38.31M, indicating robust asset backing and low credit risk.
  • Tangible assets of 186.90M provide exceptional 8.43x coverage of deferred revenue 22.16M, showing strong service capability backing.
  • Operating cash flow of (32.06M) fully covers other non-current liabilities (22.02M) by 1.46x, showing strong long-term stability.
  • Tangible assets of 186.90M provide robust 4.02x coverage of other current liabilities 46.53M, indicating strong asset backing.

Bear case

  • With cash reserves of 21.68M against inventory of 91.36M, the 0.24 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (32.06M) provides insufficient coverage of deferred revenue obligations of 22.16M, which is -1.45x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (32.06M) shows concerning coverage of stock compensation expenses of 13.85M, with a -2.32 ratio indicating potential earnings quality issues.
  • Free cash flow of (36.50M) provides weak coverage of capital expenditures of 4.43M, with a -8.23 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (29.87M) show weak coverage of depreciation charges of 14.19M, with a -2.11 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.81 2.23
EV to Cash from Ops. EV/CFO -4.75 14.70
EV to Debt EV to Debt 3.97 79.39
EV to EBIT EV/EBIT -5.10 -40.16
EV to EBITDA EV/EBITDA -7.45 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF -4.17 -286.14
EV to Market Cap EV to Market Cap 1.14 6.33
EV to Revenue EV/Rev 0.36 2.39
Price to Book Value [P/B] P/B 1.64 32.78
Price to Earnings [P/E] P/E -4.11 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 14.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 18.58
Interest Coverage Int. cover (Qtr) -11.72 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 32.44 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -81.19 33.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -3.22 -272.99
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.96 588.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -3.22 29.27
EBT Growth (1y) % EBT 1y % (Qtr) -2.21 -92.23
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -121.86
FCF Growth (1y) % FCF 1y % (Qtr) -724.42 71.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -14.41 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.25 1.24
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.29 0.74
Current Ratio Curr Ratio (Qtr) 1.85 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 25.92
Interest Cover Ratio Int Coverage (Qtr) -11.72 4.43
Times Interest Earned Times Interest Earned (Qtr) -11.72 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3.70 -42.64
EBIT Margin % EBIT Margin % (Qtr) -7.05 -131.12
EBT Margin % EBT Margin % (Qtr) -7.65 -64.70
Gross Margin % Gross Margin % (Qtr) 61.60 30.93
Net Profit Margin % Net Margin % (Qtr) -7.70 -65.71