YETI

YETI Holdings Inc

Consumer


Presented:05/31/2024
Price:$40.74
Cap:$3.47B
Current Price:$41.39
Cap:$3.50B

Presented

Date05/31/2024
Price$40.74
Market Cap$3.47B
Ent Value$3.36B
P/E Ratio20.36x
Book Value$7.59
Div Yield0%
Shares O/S85.24M
Ave Daily Vol1,655,967
Short Int13.78%

Current

Price$41.39
Market Cap$3.50B
YETI Holdings, Inc. engages in the design, marketing, and distribution of products for the outdoor and recreation market. Its products include coolers, drinkware, travel bags, backpacks, multipurpose buckets, outdoor chairs, blankets, dog bowls, apparel, and accessories. The company was founded by Roy J. Seiders and Ryan R. Seiders in 2006 and is headquartered in Austin, TX.

Publicly traded companies mentioned herein: Dick’s Sporting Goods Inc (DKS), Tractor Supply Co (TSCO), YETI Holdings Inc (YETI)

Highlights

The presenter is short shares of YETI Holdings Inc (YETI), which generated $1.68B of revenue in 2023 with a business mix of 61% drinkware, 37% coolers & equipment, and 2% other (apparel, bottle openers, accessories). Although the company has disproven several bear theses in recent years, it is now maturing on the cooler side and facing intense competition in the drinkware category. This creates a difficult setup for YETI to meet growth targets both this year and longer term. He also sees downside to margin expectations based on mix shifts to DTC and international, as well as freight disruptions. As such, he models 2024 EPS of $2.20 – $2.30 (vs. consensus $2.58) and underwrites a LDD earnings multiple to create meaningful downside from the current $40 share price.

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Idea Discussion

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