Professional
Added to YB: 2024-05-24
Pitch date: 2024-04-18
BSET [bullish]
Bassett Furniture Industries, Incorporated
+42.57%
current return
Author Info
Merion Road Capital is a fund in Miami focused on value-oriented investing through rigorous fundamental analysis of a company's operations. Follow on Twitter/X.
Company Info
Bassett Furniture Industries, Incorporated, together with its subsidiaries, manufactures, markets, and retails home furnishings in the United States.
Market Cap
$130.5M
Pitch Price
$11.90
Price Target
22.00 (+30%)
Dividend
5.32%
EV/EBITDA
4.20
P/E
16.77
EV/Sales
0.51
Sector
Household Durables
Category
value
Merion Road Capital Portfolio Holding: Bassett Furniture Industries, Incorporated
BSET: 120yr old furniture mfr, owns facilities & 57 stores. Historical 4-5% EBIT margin, now slight loss on $390M LTM rev. Plan to cut warehouse/delivery costs 2%, improve wholesale via custom upholstery focus. $13.50 price vs $19+ TBVPS (incl $8/share cash), 8 stores at $119/sqft vs $300+ market. $25M EBIT at 5x = $22 PT (66% upside). $120M MCap, no conf calls.
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