JE/ LN

JUST EAT plc

TMT, Consumer


Presented:05/17/2018
Price:£8.25
Cap:$8.57B
Current Price:£8.61
Cap:$9.05B

Presented

Date05/17/2018
Price£8.25
Market Cap$8.57B
Ent Value$7.72B
P/E RatioN/A
Book Value£1.06
Div Yield0%
Shares O/S676.55M
Ave Daily Vol4,102,422
Short IntN/A

Current

Price£8.61
Market Cap$9.05B
JUST EAT plc operates an online marketplace for food delivery. It provides online takeaway ordering service that allows consumers to search for and order in real-time from their local takeaway restaurants through a single online portal. The websites and mobile apps enable consumers to find an array of local takeaway restaurants and place orders directly through the JUST EAT platform. The firm has operations in Belgium, Brazil, Canada, Denmark, France, India, Ireland, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom. It was founded in 2001 and is headquartered in London, the United Kingdom.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Delivery Hero AG (DHER GR), Grubhub Inc (GRUB), Just Eat PLC (JE/ LN)

Highlights

The presenter is long shares of Just Eat (JE) due to its strong growth, market leading position in numerous countries, and recent investment in delivery capabilities. JE is the #1 market leader in the digital marketplace for takeaway food delivery in 12 countries worldwide (UK, Australia, Canada, France, Italy, etc.). JE has been growing 200-300% every year, and though competitor Delivery Hero is growing faster in some markets, JE has hit its growth numbers and will soon be investing in delivery operations, which was a major catalyst for the stock. Currently trading at ~£800, the presenter believes the stock could increase by 250% to £2,000 over the next 5 years as JE provides more clarity on its corporate strategy. JE currently trades at 30x EBITDA, which is optically expensive, but the presenter sees a 25-35% EBITDA CAGR. JE’s current 2.5% FCF yield should improve to 5%, per his model.

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Idea Discussion

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