Interesting to see the valuation gap between JB Hifi and SSG : PE 24 of 18.9 for JBH vs 9.3 for SSG (based on their NPAT, flat around 16.8 m$ during the last 3 years).
My point is not to say that SSG should have a similar PE than JBH. It is just that JBH could offer to buy SSG at a premium, which would still be earning enhancing for JBH, before any synergies (due to better purchasing conditions with suppliers and probably optimisation of the logistics).
Such an outcome (sale of Shaver Shop to JBH or another company, including a private equity*) looks to me more and more logical, as the company struggles to find new sources of growth, while the share price is still at the same level than its IPO price (in 2016).
Shaver Shop should probably do a strategic review in order to better value its assets.
* the main interest for a private equity is probably the stable cash flow of SSG, its low level of capex and good financial situation.
Interesting to see the valuation gap between JB Hifi and SSG :...
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Last
$1.19 |
Change
-0.005(0.42%) |
Mkt cap ! $155.9M | |||
| Open | High | Low | Value | Volume |
| $1.20 | $1.20 | $1.19 | $146.5K | 122.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 26687 | $1.19 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.20 | 70178 | 2 |
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| Last trade - 15.41pm 16/08/2024 (20 minute delay) ? |
| SSG (ASX) Chart |