SSG - Shaver Shop Group

[Clansman]

I should probably have a deeper look at SSG.

Correction, you should probably have had a deeper look at SSG.... and many others.

 

[galumay]

I should probably have a deeper look at SSG.

Ok, so far I haven't found anything to put me off in a superficial skim of the business, most of the metrics that interest me seem to be pretty good. I will start reading through all the announcements and reports.

 

[Clansman]

Ok, so far I haven't found anything to put me off in a superficial skim of the business, most of the metrics that interest me seem to be pretty good. I will start reading through all the announcements and reports.

It's just a shame you can't turn that rear vision mirror inside out? You would be on a sure fire winner every time.

 

[galumay]

Ok, I have finished looking at SSG, I dont think its a bad business, but I think there are better homes for spare capital at this time. I cant quite put my finger on why I couldn't get enough conviction. Partly its hard to make much of a case for sustainable growth after the distortions of COVID, also I dont like businesses with so little history, i prefer to be able to look thru financials of at least 5 years and preferably 10 years plus.

Hard to argue its not priced at a discount to range of IV by my metrics, so holders may see a rerate if it can maintain even fairly low growth rates going forward.

 

[Clansman]

Ok, I have finished looking at SSG, I dont think its a bad business, but I think there are better homes for spare capital at this time. I cant quite put my finger on why I couldn't get enough conviction. Partly its hard to make much of a case for sustainable growth after the distortions of COVID, also I dont like businesses with so little history, i prefer to be able to look thru financials of at least 5 years and preferably 10 years plus.

Hard to argue its not priced at a discount to range of IV by my metrics, so holders may see a rerate if it can maintain even fairly low growth rates going forward.

According to your posting history, you don't like businesses with any history at all, particularly those that have been successful during that time.

 

[Knobby22]

Shaver Shop is my pick for the month.
Noticed it acting a bit bullish and hoping for a great profit announcement this month following a good Christmas.
Young people are shaving all their bits these days so should gain from that.
Own.

 

[Dona Ferentes]

Is it just me or does this smells like a flop ala Godfrey style?

I can see the headlines already...

that was from 2016 ..
.
because today, Godfrey's went into admin.

 

[Belli]

Shaver Shop is my pick for the month.
Noticed it acting a bit bullish and hoping for a great profit announcement this month following a good Christmas.
Young people are shaving all their bits these days so should gain from that.
Own.

Bought a water pick from them. Lovely teeth is part of grooming too ya know.

Oral Care | Shaver Shop

We have Australia's best online selection of Oral Care products from a wide range of brands - Shop now

www.shavershop.com.au

 

[InsvestoBoy]

Shaver Shop is my pick for the month.
Noticed it acting a bit bullish and hoping for a great profit announcement this month following a good Christmas.
Young people are shaving all their bits these days so should gain from that.
Own.

Do you reckon the dividend yield quoted is legit/sustainable? Market cap a bit too small for my tastes but I am curious.

 

[Knobby22]

Do you reckon the dividend yield quoted is legit/sustainable? Market cap a bit too small for my tastes but I am curious.

Look at the history. Fantastic niche. You want some product, go there and talk to a rep and choose from range. Not that expensive but much better than a $2 shop or department store.
Note they have been buying back the franchises as they don't want to share.
The more the supermarkets rip us off for razor blades, the more you want to go to shavershop.

Tiny premises. Not like Godfrey's in larger premises trying to sell vacuum cleaners which aren't all that profitable with margins anyway and you can't give as a present.

SSG is not as cheap as it was but still good value.

The dividend is very sustainable and highly resistant to recession.

I suggest you visit one.

 

[InsvestoBoy]

I suggest you visit one.

I am a big fan of the boots on the ground methodology and there is one at the local shops.

 

[Value Hunter]

The problem with Australian retailers is that its a small (and already saturated) consumer market with only 25 million population and a lot of retailers. So the growth runway is limited here and once a retailer matures our retailers are usually not good enough to compete internationally usually when they try they get their ass handed to them over 95% of the time.

 

[InsvestoBoy]

The problem with Australian retailers is that its a small (and already saturated) consumer market with only 25 million population and a lot of retailers. So the growth runway is limited here and once a retailer matures our retailers are usually not good enough to compete internationally usually when they try they get their ass handed to them over 95% of the time.

Why is that a problem on a 8% yield (assuming it's sustainable)?

 

[Knobby22]

The problem with Australian retailers is that its a small (and already saturated) consumer market with only 25 million population and a lot of retailers. So the growth runway is limited here and once a retailer matures our retailers are usually not good enough to compete internationally usually when they try they get their ass handed to them over 95% of the time.

Yea, like Smiggle, Cotton On, Domino's.
Foreign companies like ToysRUS always succeed here.

 

[Knobby22]

Profit down 8.6% they say due to reduced foot traffic.
Dividend remains the same. 4.7c interim dividend. (yield 8.2%)
No debt, $431.9 million cash.
Plan to open 2 or 3 stores over next 12 months.

I think this is a pretty good result considering the retail headwinds recently.

 

[finicky]

"Shaver Shop aspires to be the market leader in ‘all things related to hair removal'."
A noble mission Don Quixote.

Read the thread. Looks like another undervalued retailer (following on from the Michael Hill (MHJ) slump today).
Going by the CommSec 7 years of performance stats:
Very low increase in share issuance over 7 years. Mild uptrend of book value. ROE history suggesting 3x book value reasonable, currently below 2x.
Gearing low.
P/E = 9. Div yield ~8% ff.
Worth around $1.90. Is that mad?

Unusual looking monthly price chart. Four attempts to break through $1.25 ceiling resistance.Normally that'd be a knockout blow but it's looking resilient.
As a bottom feeder, I am personally disinclined to buy a stock not far off all time highs, but if I had to bet, I'd tilt to it breaking through eventually?

Not Held

MONTHLY All Data

 

[systematic]

@finicky I feel like I'm following you, lol, but been looking at specialty retail today (only because Joyce Corp came up on my radar, and then had a look at MHJ and SSV).
Yeah, similar to MHJ, sentiment not great - I'd still consider it bottom feeding, as you say.
I'd go more like $1.40 than the CommSec $1.90
If I was going to buy (I'm not) I think I'd have to buy both.

 

[Knobby22]

SSG has exclusive rights to the Skull shaver for 3 years.
Useful for many types here I suspect @Sean K @finicky many others.
Please go out and buy one.

SHAVER SHOP SECURES EXCLUSIVE SKULL SHAVER DISTRIBUTION AGREEMENT Melbourne, 7 June 2024 – Shaver Shop Group Limited (ASX: SSG), the Australian specialty retailer of men’s and women’s personal grooming and beauty products, is pleased to advise that is has secured the exclusive rights to distribute and sell Skull Shaver’s full range of men’s and women’s personal grooming appliances and accessories across Australia and New Zealand.

 

[Sean K]

SSG has exclusive rights to the Skull shaver for 3 years.
Useful for many types here I suspect @Sean K @finicky many others.
Please go out and buy one.

SHAVER SHOP SECURES EXCLUSIVE SKULL SHAVER DISTRIBUTION AGREEMENT Melbourne, 7 June 2024 – Shaver Shop Group Limited (ASX: SSG), the Australian specialty retailer of men’s and women’s personal grooming and beauty products, is pleased to advise that is has secured the exclusive rights to distribute and sell Skull Shaver’s full range of men’s and women’s personal grooming appliances and accessories across Australia and New Zealand.

Global Shop Direct somehow incredibly knew that I needed a MicroTouch Titanium Head Shaver a while ago and it kept coming up in my news feed so I hit the buy button to get rid of the ads. Highly recommended.

 

[finicky]

Picked up 3,000 @ 1.19
I believe it's preparing this time to finally blast through 1.25 resistance. If wrong I will pick up more.
They report FY24 fin results Aug 26

WEEKLY