Solo Brands: Too Cheap To Ignore

Oct. 06, 2022 11:29 PM ETSolo Brands, Inc. (DTCB) StockDTCB8 Comments

Summary

  • Shares of outdoor lifestyle brand owner Solo Brands, Inc. (DTC) are down over 85% from their all-time high, which was set on their first day of trading in October 2021.
  • Most of the decline had occurred before the company revised its FY22 forecast lower due to weak paddleboard sales and conservative assumptions about the economy from a new CFO.
  • Trading at under four times FY23E EPS and a price-to-FY23E net sales of 0.61, the recent insider buying by the CFO merited a deeper dive.
  • A full investment analysis follows in the paragraphs below.
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summer sunset lake paddleboarding detail

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A wise man gets more use from his enemies than a fool from his friends.”― Baltasar Gracian

Today, we take an in depth look at a small retail stock that appears dirt cheap even in an

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of DTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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