SIG

Signet Jewelers Limited

Consumer


Presented:02/25/2014
Price:$94.28
Cap:$7.56B
Current Price:$99.53
Cap:$4.38B

Presented

Date02/25/2014
Price$94.28
Market Cap$7.56B
Ent Value$7.52B
P/E Ratio29.2x
Book Value$32.95
Div Yield0.6%
Shares O/S80.22M
Ave Daily Vol1,070,000
Short Int4.03%

Current

Price$99.53
Market Cap$4.38B
Signet Jewelers Limited engages in the retail sale of jewelry and watches in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company operates through US and UK divisions. As of February 2, 2013, the US division operated a network of 1,443 stores in 50 states, including stores that trade nationally in malls and off-mall locations as ‘Kay Jewelers’, and regionally under the mall-based brands; and destination superstores under the ‘Jared The Galleria Of Jewelry’ brand, as well as Ultra stores. The UK division operated a network of 511 stores, including 14 stores in the Republic of Ireland and 3 in the Channel Islands under the ‘H.Samuel’, ‘Ernest Jones’, and ‘Leslie Davis’ trade names in regional shopping malls and high street locations. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.

Highlights

Signet (SIG) announced the acquisition of Zale earlier this month (2/19) for $1.4 billion, or $21 per-share in cash. Pro-forma, the deal creates a $9 billion EV jewelry chain, the largest in the US. Despite SIG being up 20% in under one month, the presenter is long shares and thinks the risk/ reward is favorable at present levels (mid-$90s). Based on his estimates, the deal appears to be at least 40-80% accretive to earnings, and one of the biggest pieces of the bear case (competition from Zale) is now nullified.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.