Dr Martens (DOCS)

[Wasron]

My teenage daughter has been badgering me for nearly a year now to buy her a pair of Docs, but at £150 a pop I’ve resisted until her feet finish growing.

I remember loving my own pair 30 years ago, and they seem to garner a significant amount of brand loyalty.

Price has halved over the last couple of years, but op margin and roce have been improving at 25% and 32% respectively.

PE only 13 and now paying a divi, currently yielding 2.2%

Debt seems stable while turnover is increasing. At the superficial level this all looks very attractive as a long term investment.

Does anyone have any views on this company, as I’m definitely tempted, and feel the brand loyalty will help to mitigate the impact of the cost of living crisis on this company?

Wasron

[GrahamPlatt]

What with the prophets of doom around at the mo, the thing I’d be wondering is “are they edible?”

[monabri]

Private Equity (Permira) took over Doc M's.

https://www.theguardian.com/money/2019/ ... tens-brand

"Dr Martens is now owned by Permira, a £30bn group headquartered in Pall Mall, London, which bought it in 2013 from the Griggs family for £300m."


In the next article ( Jan 22, look at the comment on market cap for DOCS....and compare to Permira's purchase cost).

https://www.reuters.com/world/uk/dr-mar ... 022-01-27/

"Dr. Martens shares sank 13% to 281 pence in late morning trading, giving it a market capitalisation of 2.82 billion pounds.The stock has lost a quarter of its value since listing at 370 pence in January 2021."

Permira have nicely buffed up the brand shareprice.

( Private Equity are involved...I'd be very cautious ..well, TBH, I wouldn't go there).

[nicster]

In terms of the actual product, from what i've heard, the quality has dropped off over the last few years. Possibly due to most being made in China now, and using cheaper materials.

If you're looking for quality boots now, i think the alternatives that get recommended are Red Wing Shoes, Grinders and Solovair.

[Wasron]

Private Equity (Permira) took over Doc M's.

https://www.theguardian.com/money/2019/ ... tens-brand

"Dr Martens is now owned by Permira, a £30bn group headquartered in Pall Mall, London, which bought it in 2013 from the Griggs family for £300m."


In the next article ( Jan 22, look at the comment on market cap for DOCS....and compare to Permira's purchase cost).

https://www.reuters.com/world/uk/dr-mar ... 022-01-27/

"Dr. Martens shares sank 13% to 281 pence in late morning trading, giving it a market capitalisation of 2.82 billion pounds.The stock has lost a quarter of its value since listing at 370 pence in January 2021."

Permira have nicely buffed up the brand shareprice.

( Private Equity are involved...I'd be very cautious ..well, TBH, I wouldn't go there).

I agree to a significant extent, but the price is almost 50% down on the IPO 18 months ago.

Over time, the impact of any smoke and mirrors/obfuscation from the IPO prospectus must decline (as things become clearer), so I guess that’s what I’m struggling with.

I wouldn’t have bought 18 months ago, but at a much lower price and PE, combined with decent margins and ROCE, are they attractive now…?