Container Store Group (TCS), mcap=$366m, price $7.32 vs $8.12

Pitch: Retail turnaround story with star management now in place. Leveraged retailer of storage containers and custom closet solutions. Despite being perceived as a melting ice-cube, the concept still resonates very well with customers and has been COVID over-earner. Multiple initiatives by new management are expected to push profitability back to COVID levels.

Valuation: TCS did ~$90m of EBITDA every year from ’12-’19 vs an EV of $600m today. During the last two years EBITDA stood at $150m (COVID boost).

Exp. gain: 3x to $24 in one or two years, assuming EBITDA returns to $150m and 9x multiple.

Full TCS write-up (free guest account required):

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