HAWK
Blackhawk Network Holdings Inc
Finance/Real Estate, Consumer
05/11/2015
Presented
| Date | 05/07/2015 |
| Price | $35.82 |
| Market Cap | N/A |
| Ent Value | $2.11B |
| P/E Ratio | 37.2x |
| Book Value | $12.21 |
| Div Yield | N/A |
| Shares O/S | 53.90M |
| Ave Daily Vol | N/A |
| Short Int | 6.98% |
Current
| Price | $45.15 |
| Market Cap | $2.58B |
| Blackhawk Network Holdings, Inc. provides a range of prepaid gift, telecom, and debit cards; and related prepaid products and payment services. It distributes closed loop gift cards, including digital media and e-commerce, dining, electronics, entertainment, fashion, gasoline, home improvement, and travel; single-use non-reloadable open loop gift cards; and prepaid wireless or cellular cards used to load airtime onto the prepaid handsets, as well as sells handsets. The company also provides prepaid financial services products, such as general purpose reloadable (GPR) cards comprising Green Dot and NetSpend branded cards, as well as PayPower; and Reloadit, a GPR reload network product that allows consumers to reload funds onto their previously purchased GPR cards. In addition, it offers rebate, incentive, and reward processing and validation services; Cardpool, an online gift card exchange product; and GoWallet, which facilitates the registration of gift cards, tracking of balances, delivery of gift card related offers, and purchase of eGifts online. Further, the company offers card production and packaging services to its prepaid gift and telecom content providers. It distributes its products through grocery, convenience, specialty, and online retailers in the Americas, Europe, Africa, Australia, and Asia. The company was founded in 2001 and is headquartered in Pleasanton, California. |
Publicly traded companies mentioned herein: Apple Inc (AAPL), Blackhawk Network Holdings Inc (HAWK), Euronet Worldwide Inc (EEFT), Google Inc (GOOG)
Highlights
The presenter is long shares of Blackhawk Network Holdings (HAWK), and believes the global payment network operator and leader in third-party gift card distribution is poised to benefit from recent M&A activity, deal synergies, stable operating margins and operating leverage, as well as domestic and international growth. The company and InComm (owned by Warburg Pincus) operate in a duopoly in the US market, and HAWK has a “lock” on distribution through grocery stores and mass retailers (InComm focuses on convenience stores). With shares trading at 16x - 17x 2015 earnings expectations (excluding its NOLs) and the top line growing anywhere from 20% - 30% today, HAWK shares appear to be attractively valued.
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