GO

Grocery Outlet Holding Corp

Consumer


Presented:09/11/2019
Price:$36.65
Cap:$3.24B
Current Price:$16.45
Cap:$1.61B

Presented

Date09/11/2019
Price$36.65
Market Cap$3.24B
Ent Value$3.51B
P/E RatioN/A
Book Value$8.12
Div Yield0%
Shares O/S88.36M
Ave Daily Vol806,518
Short Int2.05%

Current

Price$16.45
Market Cap$1.61B
Grocery Outlet Holding Corp. engages in the operation of retail stores. It offers name-brand consumables and fresh products through a network of independently operated stores. The company was founded by Jim Read in 1946 and is headquartered in Emeryville, CA.

Publicly Traded Companies mentioned Herein: At Home Group Inc (HOME), Beyond Meat Inc (BYND), Big Lots Inc (BIG), Burlington (BURL), Costco Wholesale Corporation (COST), Dunkins’ Brands Group Inc (DNKN), Ollie's Bargain Outlet Holdings Inc (OLLI), Ross Stores Inc (ROST), Walmart Inc (WMT). 

Highlights

The presenter is short shares of Grocery Outlet (GO), as he sees meaningful downside risk from current mid-$30 levels. The extreme-value grocery retailer, which comps itself to discount retailers such as Ollies and 5 Below, appears to be overvalued in an increasingly competitive retail market. In the presenters opinion, sustaining a mid-20x EBITDA multiple and a >50x P/E multiple seems “a bit crazy” since comps with similar growth levels trade at ~16x EBITDA. 

With a ~$3.2B market cap, GO offers discounted, overstocked and closeout products from name brand and 1,500 private label suppliers across its ~330 stores in California, Idaho, Nevada, Oregon, Pennsylvania and Washington, providing a full grocery store experience. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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