- The company is executing and generating substantial FCF. Massive industry tailwinds will drive further earnings growth and a rerate to a reasonable multiple. Fair Value is over $14/share today.
- LL trades at 10x forward EV/EBITDA and should be categorized as more of a commodity retailer versus The Tile Shop as a luxury retailer, TTSH has over 2x the margins.
- TTSH will reach $14 share based on 10.5x EV/2022 EBITDA which would equate to a 7.8% after tax FCF yield. TTSH currently trades at a ~16.5% FCF yield on 2022.
- Impending uplisting will help close the gap to $14 fair value.
For further details see:
Tile Shop: 115% Upside To Fair Value