Johnson Outdoors ($JOUT) Value Play - I Hate Camping and Kayaking But I Like The Stock

Warren Buffett is famously quoted as saying "buy the fucking dip you pussy". So in this case I took a page out of his book and decided to go hunting for undervalued companies. I happened to stumble upon Johnson Outdoors ($JOUT). If i had to describe it, I would call it the inbred bastard child of Canadian Tire and Dick's Outdoors Sporting Goods. Apparantly they produces outdoor recreational products such as watercraft, diving equipment, camping gear, and outdoor clothing. They have operations in 24 locations worldwide and employ 1,400 people.  Their market cap is $1.12B with sales of $750.10M and income of $92M YTD. So far my exposure to outdoors camping equipment has been through the shitty 1980's hand-me-downs the Canadian Armed Forces reserves issued me during my stint, and doing shrooms once in a Cabela's and giggling at all the taxidermies. Thankfully, you don't have to understand much about a business to invest in it - just skim some funancial ratios you pretend to understand and YOLO what's left of your trust fund after your abusive step-dad snorted it into a single ticker. For a retail business, I think their fundamentals are solid and arguably undervalued for the following reasons: P/E of 12.46 Forward P/E of 13.54 PEG of 0.89 Current Ratio of 3.70 Quick Ratio of 2.70 EPS Q/Q of 122.20% Sales Q/Q of 54.30% ROA of 15.30% ROE of 22.30% ROI of 13.90% Gross Margin of 45.30% Operating Margin of 15.60% Profit Margin of 12.30% $JOUT is currently trading at $113.09, -26.66% off its 52 high of $154.18. In my opinion this could be an excellent entry point.

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Johnson Outdoors ($JOUT) Value Play - I Hate Camping and Kayaking But I Like The Stock

bullish

Warren Buffett is famously quoted as saying "buy the fucking dip you pussy". So in this case I took a page out of his book and decided to go hunting for undervalued companies.

I happened to stumble upon Johnson Outdoors ($JOUT). If i had to describe it, I would call it the inbred bastard child of Canadian Tire and Dick's Outdoors Sporting Goods. Apparantly they produces outdoor recreational products such as watercraft, diving equipment, camping gear, and outdoor clothing. They have operations in 24 locations worldwide and employ 1,400 people.  Their market cap is $1.12B with sales of $750.10M and income of $92M YTD.

So far my exposure to outdoors camping equipment has been through the shitty 1980's hand-me-downs the Canadian Armed Forces reserves issued me during my stint, and doing shrooms once in a Cabela's and giggling at all the taxidermies. Thankfully, you don't have to understand much about a business to invest in it - just skim some funancial ratios you pretend to understand and YOLO what's left of your trust fund after your abusive step-dad snorted it into a single ticker.

For a retail business, I think their fundamentals are solid and arguably undervalued for the following reasons:

  1. P/E of 12.46
  2. Forward P/E of 13.54
  3. PEG of 0.89
  4. Current Ratio of 3.70
  5. Quick Ratio of 2.70
  6. EPS Q/Q of 122.20%
  7. Sales Q/Q of 54.30%
  8. ROA of 15.30%
  9. ROE of 22.30%
  10. ROI of 13.90%
  11. Gross Margin of 45.30%
  12. Operating Margin of 15.60%
  13. Profit Margin of 12.30%

$JOUT is currently trading at $113.09, -26.66% off its 52 high of $154.18. In my opinion this could be an excellent entry point.

 

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1 min

150.00

Target Price

7/ 10

Confidence

6-12 Months

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