Every metric I look at tells me this company is undervalued. Low multiples, solid margins, decent growth, great CEO, top notch marketing and two legitimately good products. The debt from the HeyDude acquisition is the only black mark but I don’t see that as much of a risk given the financials.
As I look for bear arguments, the only thing I see over and over is “it’s a fad”. This doesn’t hold water with me. When people find a quality product they like, they stick with it. How many times have we heard the “It’s a fad” argument be used against FB/Insta over the years? How did that work out? Crocs became “cool” because of the great marketing strategies they employed. I don’t foresee this changing with the same leadership in charge. Speaking from personal experience, as a 30 year old man I don’t care whether they are cool or not, I love both products (particularly my HeyDudes).
So, help me understand what I am missing. Why is this company valued like it’s dying?
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