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Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
Brian Wells Hibbett Pitch Edit
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Brian Wells Hibbett Pitch Edit

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Foolish intern Brian Wells recently put together a slide deck on Hibbett Sports as a potential investment idea.

Foolish intern Brian Wells recently put together a slide deck on Hibbett Sports as a potential investment idea.

Published in: Business
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Transcript

  • 1. Brian Wells July 10, 2014 HIBBETT SPORTS (NASDAQ: HIBB) 1
  • 2. 2 HIBBETT SPORTS
  • 3. Valuation Free Cash Flow Returns on Capital Growth Share Buy Back 3 THE VIRTOUS CIRCLE
  • 4. • 19% below 52 week high • Fair Value $54 - $61 4 28.0 23.6 18.4 17.9 20.9 21.6 24.0 20.8 19.5 17.7 13.9 10.7 10.6 11.9 12.1 13.9 12 11.9 2006 2007 2008 2009 2010 2011 2012 2013 2014 P/E EV/EBIT WHAT IS THE COMPANY WORTH?
  • 5. 5 $27 $51 $42 $65 $2 $0 $10 $20 $30 $40 $50 $60 $70 2010 2011 2012 2013 2014 In Millions of Dollars Cap Ex 2010 – $9.6M 2011 – $10.5M 2012 – $13M 2013 – $22M 2014 – $50.5M FREE CASH FLOW
  • 6. 6 RETURNS ON CAPITAL 5% 10% 15% 20% 25% 30% 35% 2010 2011 2012 2013 2014 ROIC HIBB DKS BGFV
  • 7. 7 RETURNS ON CAPITAL 5% 10% 15% 20% 25% 30% 35% 2010 2011 2012 2013 2014 ROE HIBB DKS BGFV
  • 8. 8 Improving Margins 25% 27% 29% 31% 33% 35% 37% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Gross Margin HIBB DKS BGFV
  • 9. 9 SMALL MARKET FOCUS 939 Stores in 31 States
  • 10. 10 SMALL MARKET FOCUS
  • 11. 11 COMPETETIVE OVERLAP 0% 5% 10% 15% 20% 25% 1 mile 3 miles 5 miles 10 miles Overlap with competitors by mile radius Source: Hibbett Roadshow Presentation
  • 12. 12 • FY 2013 – 900K shares at $49.9M – Avg Cost Basis $55/share • FY 2014 – 400K shares at $20.1M – Avg Cost Basis $50/share • All time – 12.4M shares at $343.4M – Avg Cost Basis $28/share • FY 2015 – Planned 4% SHARE REPURCHSES
  • 13. • Separate Chairman and CEO – Chairman started in 1965 as retail clerk • Comparable pay to competitors • Glassdoor rating 3.2, CEO 66% approval • IT focus to improve efficiency • Return capital to shareholders • Conservative with debt 13 MANAGEMENT
  • 14. 14 Wonderful Company + Fair Price + Long-Term Thinking = Outsized Returns – Andy Cross SOLVING FOR X
  • 15. • Store Model Prototype • Financial Highlights 1 • Financial Highlights 2 15 Appendix
  • 16. 16 HIBBETT STORE MODEL Appendix Source: Hibbett Roadshow Presentation
  • 17. 17 FINANCIAL HIGHLIGHTS 1 Appendix Source: Hibbett Roadshow Presentation
  • 18. 18 FINANCIAL HIGHLIGHTS 2 Appendix Source: Hibbett Roadshow Presentation

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