peterHK Posted August 11, 2019 Share Posted August 11, 2019 Founder led, big insider ownership beauty brand company growing at 20-30% a year trading at 11x LTM EBITDA and 7.5x on consensus. Focus on mass prestige, which is hugely popular and growing very fast. Put together through acquisitions of a few companies. Makeup/beauty is a great business, very high gross margin, can get some good brand loyalty going. Very high ROIC if you get it right, so coupling high ROIC with growth means the business should trade at a good multiple if all else is equal (e.g EL trades at like 30x). Bought back shares last quarter as they've tanked from the IPO, so nice to see some good capital allocation there. Knock against it is net debt to EBITDA is 4.8x, but if they can execute then this becomes sort of a levered growth story. What am I missing here? Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now