YETI

YETI Holdings Inc

Consumer


Presented:07/13/2023
Price:$42.20
Cap:$3.66B
Current Price:$41.39
Cap:$3.50B

Presented

Date07/13/2023
Price$42.20
Market Cap$3.66B
Ent Value$3.47B
P/E Ratio49.25x
Book Value$6.26
Div Yield0%
Shares O/S86.65M
Ave Daily Vol1,122,161
Short IntN/A

Current

Price$41.39
Market Cap$3.50B
YETI Holdings, Inc. engages in the design, marketing, and distribution of products for the outdoor and recreation market. Its products include coolers, drinkware, travel bags, backpacks, multipurpose buckets, outdoor chairs, blankets, dog bowls, apparel, and accessories. The company was founded by Roy J. Seiders and Ryan R. Seiders in 2006 and is headquartered in Austin, TX.

Publicly traded companies mentioned herein: Dick’s Sporting Goods Inc (DKS), Helen of Troy Ltd (HELE), Walmart Inc (WMT), YETI Holdings Inc (YETI)

Highlights

The presenter is short shares of YETI Holdings Inc (YETI), which is best known for its coolers and water bottles. Management has communicated to the Street that the soft cooler recall will impact this year’s growth, and YETI is therefore guiding to 2023 revenue growth of 3% – 5%, which assumes a reacceleration to DD% in Q4 with the return of the full soft cooler line. However, the presenter is less optimistic about the reacceleration based on a slowdown in the category and YETI market share declines. He models EPS of $1.90 in 2023 (vs. consensus $2.20 and guidance of $2.12 - $2.23) and $2 in 2024 (vs. consensus $2.75), and underwrites a 15x earnings multiple to reach a fair value $30 per share, which represents ~30% downside from the current $42 share price. 

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Idea Discussion

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