Forensic Analysis · Retail / Consumer Discretionary · as of Jun 27, 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
-0.8
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-9.3%
ROE
$606M
Market cap
Stitch Fix, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -0.8, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+114.6%Accruals ratio.Net operating assets grew +114.6% relative to their average in FY2025 — the accrual component of earnings. 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.
61dInventory days.Days inventory outstanding moved from 48 to 61 FY2024→FY2025 (against cost of goods sold; inventory +21% vs -6% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-19%Return on invested capital.Return on invested capital is -19% and rising from -43% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+6.1%/yrShare-count dilution.Diluted share count changed +18% over the last 3 years to FY2025 (+6.1%/yr). The count is GROWING — existing holders are being diluted. That's ~6.1% 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 ~18%.
stoppedShareholder 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; understand why before reading it as neutral.
Key fundamentals
Net Margin-2.3%
Free Cash Flow$11.9M
Latest Revenue$1.27B
Return on Equity-14.2%
Revenue Growth YoY-5.3%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Stitch Fix, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about SFIX's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown