John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Coast Distribution System Is An Emerging Value Play With An Overlooked Catalyst

Key takeaways

  • Coast Distribution System (NYSEMKT:CRV) continues to benefit from a strong RV market, which is driving significant margin expansion, free cash flow growth and debt reduction.
  • Moreover, the shift to higher margin proprietary products used on a recurring basis by customers and new distribution channels should drive further top and bottom line growth as well as reduce its dependence on the RV market.
  • Furthermore, the high tangible book value (even assuming a significant discount for inventories and accounts receivable) limits the downside risk.

Company overview

CRV is one of the largest aftermarket suppliers of replacement parts, accessories and supplies for the RV and outdoor recreation industries. CRV supplies >10,000 products to >10,000 customers (primarily to retail parts/supplies...

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