– One of the largest clothing thrift shops online.
– At 0.5x sales trades significantly below industry transactions.
– 33% market cap and another ~40% is in unique PP&E.
– Minimal capex needs going forward and positive EBITDA expected for H2 2023.
– Company operates a “Ship it and forget it” model which resonates with a lot of women.
– TDUP has already tapped into a very significant source of supply without much effort.
– The demand side needs further scaling. 80% of customers are repeat buyers.
– Current capacity allows to reach $500m in revenues by FY 25 and achieve 8-10% EBITDA margins.
– At 10x-12x EBITDA multiple, TDUP would be worth $5-$7/share.
Exp. gain: 150-220%
Full write-up (free guest account required):
ThredUp (TDUP), mcap=$241m