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JD SPORTS WOULD EARN YOU A 1,500% IN THE LAST TEN YEARS

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WalbrockResearch821
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JD SPORTS WOULD EARN YOU A 1,500% IN THE LAST TEN YEARS

#38441

Postby WalbrockResearch821 » March 13th, 2017, 1:53 pm

JD Sports is one of the most successful companies in the last decade with share price gains of 1,584%!

These factors contribute to the following gains:
1. RISING PROFITS AND INCREASING MARGINS; - Profits grew from £8m to £133m in 12 years, whereas margins rose from 1.5% to 7%.
2. Revenue growth grew at a compound rate of 12.2% per year.
3. The value placed on JD Sports is close to 40X earnings and EV/EBIT of 25X (a record).
4. For every BRITISH POUND spent, JD manages to produce an extra £2.45 in sales within one year of implementing capex.
5. JD Sports has a net cash position of over £112m.

The funny thing is the previous decade (1996 to 2006) saw shareholders lose 8% on the stock.

Having analysed this business, the roots of its success has come from buying other sportswear businesses on the cheap. That gives JD Sports an advantage in price competitiveness, more market share and less competition.

PeterGray
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Re: JD SPORTS WOULD EARN YOU A 1,500% IN THE LAST TEN YEARS

#38444

Postby PeterGray » March 13th, 2017, 2:08 pm

Has your "research" showed you what JD will do over the next ten years?

WalbrockResearch821
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Re: JD SPORTS WOULD EARN YOU A 1,500% IN THE LAST TEN YEARS

#39081

Postby WalbrockResearch821 » March 16th, 2017, 12:59 pm

No one knows what the next ten years will bring.

If there are more cheap acquisitions, JD will make them, if not they will grow organically. Meaning at the same pace as the sportswear and outdoor apparel market. Wouldn't be surprised if JD trade sideways in the next ten years!

dspp
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Re: JD SPORTS WOULD EARN YOU A 1,500% IN THE LAST TEN YEARS

#39184

Postby dspp » March 16th, 2017, 9:00 pm

Moderator Message:
Walbrock & any similar outfits, can I suggest you tone down your titles a tad, and perhaps even back off on the content, before the mods find it necessary to reach for the big edit. regards, dspp


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