BSFFF - Basic-Fit: Fundamentals Offer Downside Protection With Great Upside
2024-03-07 10:16:48 ET
Summary
- Basic-Fit is the European market leader in the fitness industry, with a strong brand image and recognition.
- Thanks to its size and scale, they are able to offer significant value to customers starting at €24.99 per 4 weeks which is among the most competitive pricing out there.
- Basic-Fit has a track record of consistent and methodic growth, at a faster pace than any peer through their strong cash generation, advanced technology, and experienced management.
- Valuation allows for a 2.0x - 2.5x money multiple within 3 years, and a 4x-5x by 2030, in a conservative scenario.
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Investment thesis
Basic-Fit N.V. ( BSFFF ) presents a healthy combination of relatively low execution risk on a huge growth runway ahead, trading at an enormous discount to intrinsic value. At current levels an investment would enjoy significant margin of safety while allowing for multi-bagger potential. Additionally this investment is protected by a large and defined MOAT which puts it ahead of its competitors.