LONDON, UK / ACCESSWIRE / December 21, 2021 / Studio Retail Group (SRG) is a focused play on the growth of online value non-food retail. Management's aspiration to accelerate medium-term revenue growth, to a CAGR of 10-15% over four to six years, is expected from gains in active credit customer numbers and spend per customer. SRG's valuation is at a significant discount to its own historical multiples (despite an improved medium-term growth aspiration), its peers and our DCF-based valuation of c 420p per share if it can achieve its aspirations.
SRG's FY22e EV/sales multiple of 0.3x and P/E multiple of 5.0x are well below its long-term averages despite it now offering a more focused portfolio with an improved medium-term growth outlook. It also trades at a significant discount to online and offline peers despite attractive relative margins. A DCF-based valuation, which includes the assumption that management meets its £1bn revenue target by FY27 (year six), indicates a share price of 420p/share. The Frasers Group shareholding of c 27% represents an overhang to share price performance.
Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website
www.edisongroup.com
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Russell Pointon +44 (0)20 3077 5700 consumer@edisongroup.com
Sara Welford +44 (0)20 3077 5700 consumer@edisongroup.com
Learn more atwww.edisongroup.com and connect with Edison on:
LinkedIn www.linkedin.com/company/edison-group-/
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv
SOURCE: Edison Investment Research Limited
View source version on accesswire.com:
https://www.accesswire.com/678816/Studio-Retail-Group-STU-Revenue-Aspiration-with-a-Wow-Factor
