PRTY

Party City Holdco Inc

Consumer


Presented:10/30/2018
Price:$10.51
Cap:$1.01B
Current Price:$0.00
Cap:$0.00B

Presented

Date10/30/2018
Price$10.51
Market Cap$1.01B
Ent Value$3.36B
P/E Ratio5.42x
Book Value$10.31
Div Yield0%
Shares O/S96.47M
Ave Daily Vol1,536,562
Short Int25.00%

Current

Price$0.00
Market Cap$0.00B
Party City Holdco, Inc. is a party goods company, which engages in the design, manufacture, and distribution of decorated party goods. It operates through the Wholesale and Retail segments. The Wholesale segments designs, manufactures, contracts for manufacture and distributes party goods. The Retail segment operates specialty retail party supply stores under the Party City and Halloween City brands; and E-commerce websites through PartyCity.com. The company was founded in 1947 and is headquartered in Elmsford, NY.

Publicly traded companies mentioned herein: Home Depot Inc/The (HD), Michaels Cos Inc/The (MIK), Party City Holdco Inc (PRTY), Ulta Beauty Inc (ULTA)

Highlights

The presenter is short shares of Party City (PRTY) on the basis that poor business execution and a strong competitive environment will continue to negatively impact the company. PRTY is a retailer of commoditized products (e.g., costumes, plastic cups, paper plates) whose private equity owners have invested in vertically integrating the business to conserve margins. However, it is now highly levered and lacks a significant e-commerce presence. Additionally, Halloween sales represent almost 100% of its cash flow, yet its product mix is outdated (e.g., PRTY didn’t have any Fortnite costumes). Even though the stock has declined 30% recently, the presenter sees further downside risk for shareholders.

  • 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.