Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Difco	2/5/2016 7:42:23 PM
	Read Replies (3) of 78940

TCS (Container Store Group): IPO: Nov. 2013 at $18 (management received their stock awards at that point) High/low: $43/$4 Current valuation approx. 1/4 of sales. Comps are slightly negative compared to prior year, but holding better than other retailers. Overall sales higher as they are opening new stores. MV=BV Introduced new TCS closets product line with ave. ticket price of $10K. They sell approx. 2 a month per store and trending up. Strong brand and loyal customers. Average household income of shopper is around $100K and average ticket price is between $60-$70. High debt in part due to PE owner (special dividends) who bought them back in 2007. Historically no debt and very conservative with their cash. Per CEO's book, Buffett approached them first to buy but price wasn't right. Negative free cash flow, but once new store additions are eliminated from the equation you get into positive territory. My estimate FV between $8-12/share. If it weren't for the debt to mess up the EV, I would have estimated higher.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next