Last Updated: 19 Sep 2024
Executive Summary
Original Bark Co (BARK) is a pet care company that offers products, services, and content for dogs. Despite strong revenue growth in recent years, BARK has faced profitability challenges, with negative EBITDA and EPS. The company's valuation metrics are relatively low, with a Price-to-Sales ratio of 0.607 and a Price-to-Book ratio of 2.304. Analysts are cautiously optimistic about BARK's future, with two Strong Buy ratings, one Buy rating, and one Hold rating.
Company Overview
BARK was founded in 2012 and is headquartered in New York City. The company's products include subscription boxes, toys, treats, and apparel. BARK also offers a variety of services, such as dog walking, training, and grooming. The company's content platform includes a blog, podcast, and social media channels.
Fundamental Analysis
BARK's revenue has grown significantly in recent years, from $230 million in 2019 to $486 million in 2023. However, the company has struggled to achieve profitability, with negative EBITDA and EPS in each of the past three years. BARK's gross profit margin has also declined in recent quarters, from 64.5% in 2021 to 63.4% in 2023.
BARK's balance sheet is relatively strong, with $102 million in cash and equivalents as of June 30, 2023. The company also has $140 million in long-term debt.
Technical Analysis
BARK's stock price has been in a downtrend since early 2023. The stock is currently trading at $1.7, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 30, which indicates that the stock is oversold.
Short Term Outlook
BARK's short-term outlook is uncertain. The company is facing profitability challenges and its stock price is in a downtrend. However, BARK's revenue growth is strong and the company has a loyal customer base.
Long Term Outlook
BARK's long-term outlook is more positive. The pet care industry is expected to grow significantly in the coming years, and BARK is well-positioned to benefit from this growth. The company has a strong brand and a loyal customer base.
Analyst Recommendations
Analysts are cautiously optimistic about BARK's future. Two analysts have a Strong Buy rating on the stock, one analyst has a Buy rating, and one analyst has a Hold rating. The average analyst target price is $2.27, which represents a potential upside of 34% from the current price.
