FIGS' Recent Rally Is Not Justified By Fundamentals, The Stock Is Still A Hold

FIGS (NYSE:FIGS) is a healthcare apparel retailer famous for its high-quality, trendy scrubs. I started covering the company in March 2024 with a Hold rating. The rating was based on the company's low operating margins, dilutive stock-based compensation, decelerating growth trends, and increasing competition. The company's adjusted EV was too high in comparison with its operating profitability. Management's 'strong' cash flow: The company's management talked about strong and robust cash flow generation seve ...