Seeking Alpha
Editor's notes: ASNA's strong balance sheet and specialty focus should help it overcome short-term headwinds. Value investor Ariana Research sees 50%+ upside as the company fully integrates recent acquisitions.

Ascena Retail Group, Inc. (NASDAQ: ASNA)

Executive Summary

Ascena Retail Group, Inc. ("Ascena", "ASNA" or the "Company") is a leading retailer that holds a basket of brands focused on women's plus sized and tween categories. The Company has a market cap of $2.62B and an enterprise value of $2.56B. As of TTM 4/27/13, the Company generated $4.5B in revenues and $476.8MM in EBITDA, respectively.

The Company is attractively priced as the market is currently offering a proven retailer and acquisition platform with high inside ownership (~20%) that generates returns on invested capital in excess of 35% at 5.4x depressed EBITDA. Why does this opportunity exist? (1) integration issues and operational hiccups with the acquisition of Charming Shoppes have turned...

Only subscribers can access this article, which is part of the PRO research library covering 3,758 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: