– Manufacturer of branded apparel, with 17% sales from $WMT.
– At depressed valuation relative to peers and historical multiples.
– The market does not recognize the inflection in the business.
– The new CEO is making the right structural changes/divestments to bring the company ‘back to basics’.
– These efforts already show signs of paying off.
– Recently increased 2024 revenue and margin guidance.
– Initiated repurchase program for 15% of current market cap.
– Trades at the low end of historical absolute and relative multiple ranges.
– Well below peers.
– Currently at 6x normalized PE vs 12.4x historical valuation.
– Expected to re-rate closer to historical levels.
Exp. gain: +100% to $24/share in 2-3 years.
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