HOME

At Home Group Inc

Consumer


Presented:01/22/2020
Price:$6.11
Cap:$0.39B
Current Price:$36.99
Cap:$2.37B

Presented

Date01/22/2020
Price$6.11
Market Cap$0.39B
Ent Value$2.52B
P/E Ratio10.31x
Book Value$12.96
Div Yield0%
Shares O/S64.11M
Ave Daily Vol2,220,760
Short Int22.62%

Current

Price$36.99
Market Cap$2.37B
At Home Group Inc. operates home decor superstores in the United States. The company's stores offer home furnishings, including accent furniture, furniture, mirrors, patio cushions, rugs, and wall art; and accent décor, such as artificial flowers and trees, bath, bedding, candles, garden and outdoor décor, holiday accessories, home organization, pillows, pottery, vases, and window treatments. As of August 21, 2019, it operated 205 stores in 39 states. The company was founded in 1979 and is headquartered in Plano, Texas.

Publicly traded companies mentioned herein: At Home Group Inc (HOME), Five Below Inc (FIVE), TJX Cos Inc/The (TJX)

Highlights

The presenter is long shares of At Home Group Inc (HOME), the home décor retailer. HOME’s stock has had a disastrous last eighteen months, falling from a June 2018 peak of ~$40 to the current ~$6 per share. According to the presenter, this poor performance can be attributed to a multitude of factors including accounting, macroeconomic, and seasonal issues. Going forward, however, he sees HOME as a strong recovery candidate with the potential for performance to inflect in the first quarter of FY2021 (FY2020 ends January 25, 2020), which could drive improvement in the medium- and long-term sentiment. In this case, he would anticipate upward Street revisions, P/E multiple reflation from ~10x consensus FY2021 estimates to ~15x, and a price target of $10 – $12 per share with additional upside over the longer term. Meanwhile, he doesn’t see significant downside to current valuation, as his bear case yields a price target of $4.50 – $5 per share. 

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