TPW AU

Temple & Webster Group Ltd

Consumer, TMT


Presented:08/25/2021
Price:A$12.84
Cap:$1.21B
Current Price:A$13.42
Cap:$1.25B

Presented

Date08/25/2021
PriceA$12.84
Market Cap$1.21B
Ent Value$1.04B
P/E Ratio64.88x
Book ValueA$0.67
Div Yield0%
Shares O/S120.45M
Ave Daily Vol617,759
Short IntN/A

Current

PriceA$13.42
Market Cap$1.25B
Temple & Webster Group Ltd. operates as an online retailer of furniture and homewares. It provides furniture, homewares, home décor, arts, gifts, and lifestyle products from Australian and international designers. The firm operates through two brands: Temple & Webster, and Milan Direct. The company was founded by Mark Coulter, Brian Shanahan, Conrad Yiu and Adam McWhinney in July 2011 and is headquartered in St. Peters, Australia.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Harvey Norman Holdings Ltd (HVN AU),Temple & Webster Group Ltd (TPW AU), Wayfair Inc (W)

Highlights

The presenter is long shares of Temple & Webster Group Ltd (TWP AU), an Australian online retailer of furniture and homewares, which operates a similar model to Wayfair (TPW acquired Wayfair’s Australian-based business in 2015). He believes TPW is in a favorable position to capitalize on an underpenetrated e-commerce market for furniture and homewares in Australia, and can effectively take market share in a highly fragmented market. Given the early stage of growth for both Australian e-commerce and online penetration in furniture and homewares, as well as TPW’s competitive positioning, he applies a 3x multiple (Wayfair trades at 2x - 2.5x revenue) to his 2024 revenue estimates, which yields 60% upside to shares (25% IRR).

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Idea Discussion

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