CAB
Cabela's Incorporated
Consumer
05/30/2014
Presented
| Date | 05/28/2014 |
| Price | $60.29 |
| Market Cap | $4.28B |
| Ent Value | $7.48B |
| P/E Ratio | 19.75x |
| Book Value | $25.57 |
| Div Yield | N/A |
| Shares O/S | 71.02M |
| Ave Daily Vol | 820,000 |
| Short Int | 17.32% |
Current
| Price | $61.50 |
| Market Cap | $4.24B |
| Cabela's Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company operates through three segments: Retail, Direct, and Financial Services. The Retail segment sells products and services through its retail stores. As of December 31, 2013, it had 46 retail stores located in 26 states of the United States; and 4 stores in Canada. The Direct segment sells products through its e-commerce Websites, such as Cabelas.com and Cabelas.ca, as well as direct mail catalogs. The Financial Services segment issues Cabela’s CLUB Visa credit card, a reward based credit card program; certificates of deposits; and underwriting services. It offers its Cabela’s CLUB Visa credit cards through various channels comprising Website, retail stores, inbound telemarketing, and catalogs. The company’s product portfolio includes hunting equipment, such as firearms, ammunition, optics, archery products, and related accessories and supplies; a range of equipment and accessories for outdoor activities comprising fishing and tackle products, boats, electronics, marine accessories and equipments, camping gear and equipment, food preparation and outdoor cooking products, and gifts and home furnishings, as well as all-terrain vehicles and accessories for automobiles and all-terrain vehicles; and clothing and footwear products, such as fieldwear apparel and footwear, sportswear apparel and footwear, and workwear products, as well as apparel and footwear for the casual customers. Cabela’s Incorporated was founded in 1961 and is headquartered in Sidney, Nebraska. |
Publicly traded companies mentioned herein: Cabela’s Incorporated (CAB), Dick's Sporting Goods Inc. (DKS)
Highlights
The presenter is short shares of outdoor retailer Cabela’s (CAB). At $62 and a ~$4.4 billion market cap, shares appear to be expensive (17.5x EPS and 9x EBITDA based on his numbers), suggesting there may be minimal upside risk to the position. The potential for a reversion to more normal levels of annual gun sales in the US would be negative for CAB as ~20% of sales are derived from guns and ammo, and high attachment rates (cross selling complementary items) and ammo sales help support margins.
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