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National Vision (EYE)

National Vision Holdings, Inc. is one of the largest optical retail companies in the United States with over 1,200 stores in 44 states plus the District of Columbia and Puerto Rico. With a mission of helping people by making quality eye care and eyewear more affordable and accessible, the company operates five retail brands: America's Best Contacts & Eyeglasses, Eyeglass World, Vision Centers inside select Walmart stores, and Vista Opticals inside select Fred Meyer stores and on select military bases, and several e-commerce websites, offering a variety of products and services for customers' eye care needs.

Company profile

Ticker
EYE
Exchange
CEO
Leonard Fahs
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
Nautilus Acquisition Holdings, Inc. • National Vision, Inc. • Arlington Contact Lens Service, Inc. • NVAL Healthcare Systems, Inc. • FirstSight Vision Services, Inc. • Vision Administrators, Inc. • International Vision Associates, Ltd. • Opti-Vision Finance • VC IV, LLC • Czech Vision Associates, s.r.o. ...

EYE stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$35.50
Low target
$32.00
High target
$39.00
Barclays
Maintains
Overweight
$39.00
17 Aug 22
Goldman Sachs
Upgraded
Buy
$32.00
27 Jun 22

Calendar

11 Aug 22
24 Sep 22
31 Dec 22
Quarter (USD) Jul 22 Apr 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 255.61M 255.61M 255.61M 255.61M 255.61M 255.61M
Cash burn (monthly) 20.12M 12.84M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 55.46M 35.38M n/a n/a n/a n/a
Cash remaining 200.15M 220.23M n/a n/a n/a n/a
Runway (months of cash) 9.9 17.2 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Jun 22 Jose Armario Common Stock Grant Acquire A No No 0 7,832 0 12,005
15 Jun 22 David M Tehle Common Stock Grant Acquire A No No 0 5,036 0 26,466
15 Jun 22 Johnson Susan S Common Stock Grant Acquire A No No 0 7,832 0 12,261
15 Jun 22 Naomi Kelman Common Stock Grant Acquire A No No 0 7,832 0 12,580
15 Jun 22 Cianfrocco Heather Common Stock Grant Acquire A No No 0 6,882 0 15,691
13F holders Current Prev Q Change
Total holders 171 183 -6.6%
Opened positions 34 31 +9.7%
Closed positions 46 34 +35.3%
Increased positions 62 69 -10.1%
Reduced positions 60 68 -11.8%
13F shares Current Prev Q Change
Total value 2.68B 4.2B -36.1%
Total shares 97.46M 95.88M +1.7%
Total puts 0 15K EXIT
Total calls 12.9K 5.7K +126.3%
Total put/call ratio 2.6
Largest owners Shares Value Change
BLK Blackrock 13.04M $358.63M +116.8%
Vanguard 8.62M $237.18M +12.8%
JPM JPMorgan Chase & Co. 7.83M $215.19M -1.7%
William Blair Investment Management 7.76M $213.52M +43.1%
FMR 4.33M $119.07M +57.5%
Clearbridge Advisors 4.2M $115.37M +0.1%
Durable Capital Partners 4.19M $115.21M +22.8%
Alliancebernstein 4.08M $112.09M -21.7%
BK Bank Of New York Mellon 3.27M $89.82M +25.0%
Wellington Management 3.26M $89.73M -8.1%
Largest transactions Shares Bought/sold Change
BLK Blackrock 13.04M +7.03M +116.8%
Adage Capital Partners GP, L.L.C. 0 -4.54M EXIT
Wasatch Advisors 0 -2.99M EXIT
William Blair Investment Management 7.76M +2.34M +43.1%
FMR 4.33M +1.58M +57.5%
Brown Advisory 122.43K -1.38M -91.8%
Bain Capital Public Equity Management II 0 -1.25M EXIT
STT State Street 2.97M +1.24M +71.7%
Alliancebernstein 4.08M -1.13M -21.7%
Vanguard 8.62M +975.68K +12.8%

Financial report summary

?
Competition
Warby Parker
Risks
  • An overall decline in the health of the economy and other factors impacting consumer spending, including inflation, recessionary conditions, the timing and issuance of tax refunds, governmental instability and natural disasters, may affect consumer purchases, which could reduce demand for our products and materially harm our sales, profitability and financial condition.
  • If we fail to open and operate new stores in a timely and cost-effective manner or fail to successfully enter new markets, our financial performance could be materially and adversely affected.
  • Failure to recruit and retain vision care professionals for our stores could adversely affect our business, financial condition and results of operations.
  • Future operational success depends on our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors.
  • If the performance of our Host and Legacy brands declines or we are unable to maintain or extend our operating relationships with our Host and Legacy partners, our business, profitability and cash flows may be adversely affected and we may be required to incur impairment charges.
  • We are subject to extensive state, local and federal vision care and healthcare laws and regulations and failure to adhere to such laws and regulations would adversely affect our business.
  • We are subject to managed vision care laws and regulations.
  • We require significant capital to fund our expanding business. If we are unable to maintain sufficient levels of cash flow from our operations, we may not be able to execute or sustain our growth strategy or we may require additional financing, which may not be available to us on satisfactory terms or at all.
  • We depend on our distribution centers and optical laboratories. The loss of, or disruption in the operations of, one or more of these facilities may adversely affect our ability to process and fulfill customer orders and deliver our products in a timely manner, or at all, and may result in quality issues, which would adversely affect our reputation, our business and our profitability.
  • We face risks associated with vendors from whom our products are sourced and are dependent on a limited number of suppliers.
  • The optical retail industry is highly competitive, and if we do not compete successfully, our business may be adversely impacted.
  • We rely heavily on our information technology systems, as well as those of our vendors, for our business to effectively operate and to safeguard confidential information; any significant failure, inadequacy, interruption or security breach could adversely affect our business, financial condition and operations.
  • We are a low-cost provider and our business model relies on the low cost of inputs. Factors such as wage rate increases, inflation, cost increases, increases in raw material prices and energy prices could have a material adverse effect on our business, financial condition and results of operations.
  • Our growth strategy could strain our existing resources and cause the performance of our existing stores to suffer.
  • Our success depends upon our marketing, advertising and promotional efforts. If we are unable to implement them successfully or efficiently, or if our competitors are more effective than we are, it could have a material adverse effect on our business, financial condition and results of operations.
  • We are subject to risks associated with leasing substantial amounts of space, including future increases in occupancy costs.
  • Certain technological advances, greater availability of, or increased consumer preferences for, vision correction alternatives to prescription eyeglasses or contact lenses, and future drug development for the correction of vision-related problems may reduce the demand for our products and adversely impact our business and profitability.
  • If we fail to retain our existing senior management team or attract qualified new personnel, such failure could have a material adverse effect on our business, financial condition and results of operations.
  • Our profitability and cash flows may be negatively affected if we are not successful in managing our inventory balances and inventory shrinkage.
  • Our operating results and inventory levels fluctuate on a seasonal basis.
  • We rely on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues, the future reduction of which could adversely affect our results of operations.
  • Our e-commerce and omni-channel business faces distinct risks, and our failure to successfully manage it could have a negative impact on our profitability.
  • We could be adversely affected by product liability, product recall or personal injury issues.
  • Failure to comply with laws, regulations and enforcement activities or changes in statutory, regulatory, accounting and other legal requirements could potentially impact our operating and financial results.
  • Adverse litigation judgments or settlements resulting from legal proceedings relating to our business operations could materially adversely affect our business, financial condition and results of operations.
  • We may incur losses arising from our investments in technological innovators in the optical retail industry, which would negatively affect our financial results.
  • We may not be able to adequately protect our intellectual property, which could harm the value of our brand and adversely affect our business.
  • Environmental, social and governance (ESG) issues, including those related to climate change, could have a material adverse effect on our business, financial condition and results of operations.
  • A change in interest rates or discontinuation, reform or replacement of LIBOR and other benchmark rates, or uncertainty related to the potential for any of the foregoing, may adversely affect our business.
  • Our credit agreement contains restrictions that limit our flexibility in operating our business.
  • Conversion of the 2025 Notes could dilute the ownership interest of existing stockholders or may otherwise depress the price of our common stock.
  • Our stock price may be volatile or may decline regardless of our operating performance.
  • Because we have no current plans to pay cash dividends on our common stock, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.
  • We are a holding company with no operations of our own and, as such, we depend on our subsidiaries for cash to fund all of our operations and expenses, including future dividend payments, if any.
  • If securities or industry analysts do not publish research or reports about our business or if they downgrade our stock or our sector, our stock price and trading volume could decline.
  • Maintaining the requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain qualified board members.
  • Ineffective internal controls could have a material adverse effect on our business and stock price, and could result in our financial statements becoming unreliable.
  • Anti-takeover provisions in our organizational documents could delay or prevent a change of control.
  • Our Board of Directors is authorized to issue and designate shares of our preferred stock in additional series without stockholder approval.
  • Our amended and restated certificate of incorporation provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for certain stockholder litigation matters, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, associates or stockholders.
Management Discussion
  • (1)We calculate total comparable store sales based on consolidated net revenue excluding the impact of (i) Corporate/Other segment net revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth is calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 10. “Segment Reporting” in our unaudited condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q, with the exception of the Legacy segment, which is adjusted as noted in clause (ii) of footnote (3) below.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Good
New words: antidilutive, Essilor, exclusive, high, letter, shifting, targeted
Removed: April, closure, exercised, fact, previously, remotely, ship, shutdown, temporary