Nuclia Waste

Main Menu

  • Home
  • Gross Margin
  • Forex Rates
  • Liquidity ratios
  • Waiver
  • Capital

Nuclia Waste

Nuclia Waste

  • Home
  • Gross Margin
  • Forex Rates
  • Liquidity ratios
  • Waiver
  • Capital
Liquidity ratios
Home›Liquidity ratios›Pitch – Gear4Music (LON: G4M)

Pitch – Gear4Music (LON: G4M)

By Ricky Bagby
June 4, 2021
59
0



Gear4music collections (LON: G4M) is a UK leader in online sales of musical instruments and equipment which is growing rapidly throughout Europe.

Started in 2003 by Andrew Wass, current CEO and 30% shareholder, revenue has grown every year since its inception and has grown from £ 12million in fiscal 2013 to £ 157.5million sterling in FY 21. The European musical instrument market is estimated at around £ 5 billion, which points to further growth.

There is competition with Thomann, but G4M was designed from the start as a website-based e-commerce platform and has invested in its own software and logistics capabilities.

Despite this obvious specialization and the recent revaluation, G4M is trading at a notable discount to other online retailers such as BooHoo and Asos. On this basis, actions were launched at Stockopedia Investment Club on May 20, 2021 at 890p per share.

There is no doubt that companies have been aided by the Covid lockdowns, so there is a possibility that the recent outperformance will return to some extent.

That said, brokers expect a drop of more than 50% in net income over the coming year. Is this caution justified or are G4M’s growth prospects unduly dismissed?

summary

Bull points: growth in turnover over several years and market share gains in several territories (growth in sales every year since 2003); improved profitability; trades with a P / S discount on other e-commerce stocks; UK and European operations; end-to-end proprietary e-commerce platform; founder-owner CEO; range of own-brand products built up over 17 years; efficient logistics system

Bear points: increase in Covid trade could subside; profitability has been an issue in the past; looks expensive on the basis of TTM; easy rerate has already taken place

Profile

About the action:

Gear4music is a Cyclical consumption company in the Specialized retailers industrial group.

He negotiates on the LSE AIM Market, with a market capitalization of £ 183.3million. Liquidity is a slight issue – although you can buy around £ 6,500 of shares in the market, the spread is 343bp.

The group is classified as a Speculative Small cap Neutral, despite being on the cusp of becoming High Flyer, with a Q rank of 93, V rank of 45, and M rank of 76.

The stock price leveled off recently after a dramatic rally, but relative strength measures remain positive. Meanwhile, the 5-year revenue CAGR is 37.8% and the operating profit CAGR is around 80.7%.

Most of this profit growth has come …



Related posts:

  1. SPAQ Motion – Now or By no means: Denbury Inc. (DEN) and Spartan Acquisition Corp. II (SPRQ) | Zoom Fintech
  2. UAL motion: a rebound might come for United, however it’s nonetheless too dangerous
  3. MarineMax, Quanex Constructing Product Corp, LouisianaPacific Corp, STMicroelectronics and Franklin Electrical Co
  4. India Rankings and Rankings maintains secure outlook for NBFCs for fiscal 22
Tagsmarket share
Previous Article

Chinese yuan: China aims to slow yuan ...

Next Article

Despite facing federal ax, state Medicaid exemption ...

Recent Posts

  • Dave Ramsey says debt consolidation solves nothing. Is he right ?
  • RBC BEARINGS INC – 10-K/Y OF OPERATIONS
  • Weakening USD Forex Market Regains Ground
  • (( 2022 )) Wyndham Championship: Live Now, Golf Line Today at TANTARA in San Francisco – August 4, 2022
  • Gold Dollar Holds Steady Ahead of ISM Services PMI as Yields Rise

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • March 2021
  • February 2021

Categories

  • Capital
  • Forex Rates
  • Gross Margin
  • Liquidity ratios
  • Waiver
  • TERMS AND CONDITIONS
  • PRIVACY AND POLICY