| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.56 | 303 |
| Intrinsic value (DCF) | 2.35 | -78 |
| Graham-Dodd Method | 2.31 | -79 |
| Graham Formula | 0.16 | -99 |
FIGS, Inc. (NYSE: FIGS) is a disruptive direct-to-consumer (DTC) healthcare apparel and lifestyle brand revolutionizing the medical scrubs market. Founded in 2013 and headquartered in Santa Monica, California, FIGS combines technical fabrics, innovative designs, and a digitally native business model to serve healthcare professionals. The company offers a premium portfolio of scrubs, lab coats, compression socks, footwear, and lifestyle apparel, all marketed through its proprietary e-commerce platform. FIGS operates in the $12B+ U.S. medical apparel industry, differentiating itself through sustainability initiatives (like its Threads for Threads recycling program) and community-building marketing. As healthcare workforce demographics shift toward younger, style-conscious professionals, FIGS' brand resonance and omnichannel strategy position it for long-term growth in the underpenetrated healthcare apparel sector.
FIGS presents a compelling growth story with its asset-light DTC model (80%+ gross margins) and untapped international expansion potential. However, valuation risks exist at ~3x forward revenue given recent profitability challenges (Q4 2023 net income declined 89% YoY). The company's $86M cash position provides runway, but rising customer acquisition costs and competition from traditional players like Cherokee Uniforms adopting DTC strategies warrant monitoring. FIGS' product innovation pipeline (e.g., antimicrobial fabric technology) and loyalty program (1.8M+ active customers as of 2023) provide competitive moats, but macroeconomic pressures on discretionary healthcare spending could impact near-term growth.
FIGS dominates the premium healthcare apparel DTC segment through three key advantages: 1) Vertical integration controlling design, marketing, and distribution, allowing rapid product iteration (4-6 week design cycles vs. competitors' 6-9 months); 2) Data-driven personalization leveraging 50M+ customer data points to optimize inventory and marketing; 3) Community engagement with 3.4M+ social media followers driving 40%+ repeat purchase rates. However, FIGS faces intensifying competition as traditional players like Barco Uniforms digitize operations and new entrants like Jaanuu scale. FIGS' $150+ average order value creates vulnerability to trade-down risk in economic downturns. The company's focus on technical fabrics (37 patents pending) and sustainability (100% recycled packaging) provides product differentiation, but supply chain concentration (80%+ production in China/Vietnam) remains a structural risk. FIGS' asset-light model enables 25%+ EBITDA margins at scale, but requires continuous brand investment to maintain its ~30% market share in the online scrub category.