Forensic Analysis · Retail / Consumer Discretionary · as of Aug 11, 2026
Stitch Fix, Inc. (SFIX)
A forensic read on Stitch Fix, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
0.3
Distress distance
Clean
Earnings quality
5
Forensic signals
-29.2
P / E (ttm)
-14.2%
ROE
$499M
Market cap
0.00%
Dividend yield
-5.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Stitch Fix, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 0.3, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+114.6%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +114.6% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by inventory up +21% against -6% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 96% of net operating assets, diverging from the balance-sheet accrual read.
-19.2%
FY2025
Return on invested capital.Return on invested capital is -19.2% in the latest fiscal year and rising from -43% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+5.8%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +18% over the last 3 years to FY2025 (+5.8%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~16%.
4% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 4% of revenue and 611% of free cash flow in FY2025 — about $0.44 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 5.8% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
Key fundamentals
Latest Revenue$1.27B
Revenue Growth YoY-5.3%
Net Margin-2.3%
Free Cash Flow$9.3M
Return on Equity-14.2%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Stitch Fix, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
Stitch Fix, Inc. (SFIX) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
stopped
FY2022→FY2024
Shareholder returns — halted.Capital returns have STOPPED — $30M of buybacks + dividends in FY2022, but ~$0 in FY2024. A halt usually means the company is conserving cash.