Bullboard - Stock Discussion Forum Kits Eyecare Ltd T.KITS

Alternate Symbol(s): KTYCF

Kits Eyecare Ltd. is a Canada-based provider of vertically integrated and digitally native eyecare platforms. The Company operates through the sale of eyewear products to consumers. It offers customers access to a selection of contact lenses and eyeglasses, including its own KITS-designed products, as well as an advanced suite of online vision tools. Its collections include South Beach, Little... see more

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TSX:KITS - Post Discussion

Kits Eyecare Ltd > Multiples of Upside Upon Recognition of Value

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Post by nozzpack on Aug 16, 2022 9:51pm

Multiples of Upside Upon Recognition of Value

"While there are no perfect public comparable companies to Kits Eyecare, we believe the broader eye wear retail peer set is an appropriate barometer, with the group trading at an average of 3.8 times 2022 sales.

In our view, Kits Eyecare should trade at a premium to these peers, given its earlier stage in the growth cycle, higher expected revenue growth, healthy balance sheet, and strong management team."

Kits is on track for $95 million in Revenue this year, with rapidly increasing recurring sales which are higher margin.

At 3.8 times 2022 revenue of $95 million, fair peer based market cap would be about $350 million which equates to about $11+ dollars per share.

$19 million in cash and now cash flow positive with margins creeping up to very robust levels.

A great disruptive model as well.

In fact, buying your eyeglasses and contacts online is easy , cheaper and very convenient, as I found out.

I am now a proud customer..