DeZwarteRidder schreef op 24 juni 2023 12:29:
[...]
JET is currently trading at 0.6x LTM revenue and 12.5x NTM Adj. EBITDA.
The sub-1x revenue value reflects the current sentiment of markets. There is little confidence around consistent profitability in the near term. This assessment looks very much warranted given the difficult trading conditions and lack of long-term outlook on how the industry will be.
Directionally, we like the business. Growth should be good and the scope for expansion is clear. Begin with food, expand to other things while innovating the overarching offering (such as Subscriptions, partnerships, etc), and continuing to offer convenience through technology.
The problem, however, is that the bottom line is a mess. We believe the route to profitability remains uncertain and is likely predicated on the development of the overarching business. Uber, for example, has developed a suite of products utilizing cross-selling and shared competencies/costs, Amazon is using Grubhub to increase the value of Prime, etc. As a standalone business, we struggle to see the value.
With this said, investors are assigning little value to revenue while there is potential for short-term price action. If a sale for Grubhub is agreed, or the adj. EBITDA of >200m is achieved, investors may perceive either or both as a positive development and price accordingly.We see no evidence to suggest the stock is materially overvalued.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.