![]() ![]() What do BarkBox, Katapult ( KPLT), and Cano Health ( CANO) have in common? All three are fundamentally sound companies trading at a discount to their peers, and their collective price action has been terrible since their mergers closed. Don't believe me? Check out these charts:ĭata by YCharts Data by YCharts Data by YCharts "All SPACs are frauds" seems to be what the market thinks right now. Chewy was the only publicly traded "pure-play" pet accessory stock during the bulk of the pandemic, but BarkBox should trade close to parity if not higher. As more eyes turn to this stock, it has a lot of room to run. At $8.31, BARK is trading at a lower revenue and gross profit multiple than Chewy while posting higher sales growth and higher gross margins. Valuation ComparisonīarkBox is dirt cheap compared to competitor Chewy.Ĭhewy is the closest public market comparison to BarkBox. The BarkBox bull thesis can be summarized in one sentence: people love pampering their dogs. Americans love their pets, and they have a ton of pets right now. Many will live for another decade+, and someone will have to take care of them. The world may be slowly reopening, but those pups aren't going anywhere. ![]() PetPoint estimates that adoption rates jumped from 58% in the beginning of March 2020 to 85% by the end of the month. COVID-19 created an explosion in pet adoption rates as Americans coped with lockdowns. There is a massive growth opportunity here. Meanwhile, BARK is only expected to hit $516M in revenue, or less than 1% of this market, in 2022. Statista showed $100B in pet industry sales in 2020. Guess what? Those dogs are going to be around for a while. Why was the last year so big for BarkBox? Lockdowns led to mass animal adoptions. Looking to fiscal year 2022, the company is projecting net revenue of $516M vs.
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