ZUMZ - Zumiez: My No. 1 Retail Post-Pandemic Play
- As the country continues to reopen from the pandemic, America’s malls are likely to attract a wave of reinvigorated consumers, including teenagers.
- ZUMZ has consistently grown revenue above 23% a year since 2015. Zumiez has continued churning out cash flow, surging FCF by almost 50% and EPS by 15% during the pandemic.
- The company’s financial position looks strong. Zumiez has no long-term debt outside of leases and current assets (excluding inventory) of $430M – nearly half the current market cap.
- My P/S, PEG, and DCF valuations imply significant undervaluation as they average to an intrinsic valuation of $90 (implying 100% upside).
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Zumiez: My No. 1 Retail Post-Pandemic Play