SIG

Signet Jewelers Limited

Consumer


Presented:11/05/2014
Price:$119.97
Cap:$9.62B
Current Price:$99.53
Cap:$4.38B

Presented

Date11/05/2014
Price$119.97
Market Cap$9.62B
Ent Value$10.82B
P/E Ratio29.39x
Book Value$33.47
Div Yield0.6%
Shares O/S80.22M
Ave Daily Vol1,140,000
Short Int2.23%

Current

Price$99.53
Market Cap$4.38B
Signet Jewelers Limited is engaged 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 1, 2014, the US division operated a network of 1,471 stores in 50 states, including stores that trade nationally in malls and off-mall locations under the Kay Jewelers brand, and regionally under the mall-based brands; and destination superstores under the Jared The Galleria Of Jewelry brand, as well as Ultra stores. As of February 1, 2014, the UK division operated a network of 493 stores, including 14 stores in the Republic of Ireland and 3 in the Channel Islands under the H.Samuel, Ernest Jones, and Leslie Davis brands in regional shopping malls and high street locations. The company also operates a diamond polishing factory, which is involved in rough diamond sourcing and manufacturing activities. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.

Publicly traded companies mentioned herein: Signet Jewelers Ltd (SIG)

Highlights

The presenter is long shares of Signet Jewelers (SIG) and thinks the dominant player in the largely fragmented domestic (US) jewelry market is attractively valued at ~$120 per share. SIG should be able to leverage economies of scale to grow earnings at a rapid pace over the next two years, and outperform Street estimates which do not appear to reflect the potential synergies of optimizing the Zale store base.

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Idea Discussion

Commentor 1 - 2 weeks ago

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