I have looked at them in the past but this was before they were profitable. I will take another look, although I already have a lot of furniture exposure (ALVU, NTZ).
Interesting idea! Looks like they're historically not very capital efficient (low ROA, ROE, ROIC) paired with an inventory buildup. Nonetheless their projected EBITDA growth and NTM EV/EBITDA are compelling. Certainly on the watchlist for me.
Thanks! I wonder if that includes leases? If you exclude them, then it's mostly a working capital investment, which should be ~20-30m net, so returns should be high (would be a ~30% roic on FY23 numbers).
Have you looked at their German peer Westwing? Similarly cheap, returning to growth, repurchasing shares, and with a slightly higher end focus.
Thanks, Brad! Appreciate the comment.
I have looked at them in the past but this was before they were profitable. I will take another look, although I already have a lot of furniture exposure (ALVU, NTZ).
Interesting idea! Looks like they're historically not very capital efficient (low ROA, ROE, ROIC) paired with an inventory buildup. Nonetheless their projected EBITDA growth and NTM EV/EBITDA are compelling. Certainly on the watchlist for me.
Thanks! I wonder if that includes leases? If you exclude them, then it's mostly a working capital investment, which should be ~20-30m net, so returns should be high (would be a ~30% roic on FY23 numbers).