Anyone run their eye over BBN (Baby Bunting) result today and how this compares to AX1 (both pure retail plays - apples with apples here)
Baby Bunting has reported an increase in sales through the 2020 financial year despite the impact of COVID-19. The group reported total tales of $405 million, up around 12% against the previous year. The company said it expects pro forma earnings before interest, tax, depreciation and amortisation for the 2020 financial year of between $33 million and $34 million, up 22 to 25% on last year. Statutory net profit after tax is expected to be between $9.5 million and $10.5 million, down the from $11.6 million (restated for AASB 16) reported last year. BBN closed 11.1% higher at A$3.50.
BBN trades on a PE of 23 x
AX1 trades on a PE of 11 x (after guidance of a 10% increase to EBITDA for fy 2020 which was in line with Morgan's estimates Pre Covid, go figure)
Either BBN is overvalued or AX1 is undervalued you decide? the difference in valuations is ridiculous.
AX1 Price at posting:
$1.28 Sentiment: Buy Disclosure: Held
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