Not many comments on this one.
But it looks worth having a look, for at least 2 reasons :
- focus on the interesting demographics (young adults, average age of their customers was 32 in 2019) while this demographics continues to spend for discretionary items*,
- strong recovery for their margins during the last 4 quarters (from 13.7 % in Q3 22 to 21.6 % in Q2 23).
One of the main drivers of their margins is the utilisation rate which keeps increasing from 65.6 % in Jan 22 to 73.6 % in Jan 23.
Another thing I like : they have been able to increase prices, without affecting the level of their utilisation rate.
They increased their member fees twice in 2022 (total increase of 6.5 %) expected to cover their expense increase of 6.5 %e (like for like) in FY 23.
Good that the company reaffirmed their guidance of 28-30 m of EBITDA 23.
Reminder : market cap of 121 m (at 1.34 $), net financial debt of 12 m and 240 m of lease liabilities.
They have a rather good level of free cash flow** of 8.1 m (taking only maintenance Capex, rather than total Capex).
However, the cash flow from operation (24.6 m) look high versus the EBITDA (14 m), so I need to understand the difference between the 2 elements to see if this level of free cash flow is sustainable.
Tough element with them is the valuation, given that they have a high level of leases.
So, we have to decide if we include these leases in their debt or not, when we calculate valuation ratios like FCF yield and EV/EBITDA.
Or we can just look at the PE 23 of 14.4 (based on H1 23 annualised).
The stock has also a rather poor liquidity, so you'd better have a strong conviction if you go with this one.
Still need to look deeper at this company.
* no sign of slowdown for VVA revenues so far in H2 23
** after repayment of lease
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Last
$1.40 |
Change
0.000(0.00%) |
Mkt cap ! $141.3M |
Open | High | Low | Value | Volume |
$1.40 | $1.40 | $1.40 | $1.509K | 1.078K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 4000 | $1.38 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.40 | 14072 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 4000 | 1.380 |
2 | 1600 | 1.360 |
1 | 752 | 1.330 |
1 | 3039 | 1.325 |
1 | 4184 | 1.320 |
Price($) | Vol. | No. |
---|---|---|
1.400 | 14072 | 3 |
1.405 | 2917 | 1 |
1.415 | 581 | 1 |
1.430 | 5000 | 1 |
1.435 | 35421 | 1 |
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