At the Moscow Exchange 10 In March, trading began in the securities of the Russian retailer Fix Price. The company's capitalization has reached 610 billion rubles., ahead of Tape and Magnet.
Almost all financiers thought, that Fix Price is very overpriced, even despite the strong position - according to the assessment of the consulting company Oliver Wyman, Fix Price market share is eighty-three percent.
Competition from large grocery chains is increasing in the low-price sector, developing?? directions of discounters. From the other side, the advantage of Fix Price is virtually no debt overload and the highest level of appreciation.
To figure it out, how the optimistic assessment of the company is justified, we compared the characteristics of Fix Price and Russian public retail chains: number of stores, retail space, revenue and capitalization. Data are presented by results 2020 G.
Key facts
• At Fix Price stores in 5 times less than, than Magnet, and c 4 times less than, than X5.
• Revenue from 1 sq.m. Fix Price is slightly ahead of Magnet, but lags behind the rest of the retail chains.
• In terms of sales area, Fix Price is the most moderate: close rival Lenta is almost twice as large.
• Fix Price's capitalization exceeded Magnit's capitalization and was almost in 5 times higher than the Ribbon. It is only seven percent behind the X5., despite the fact that Fix Price's revenue is lower in 10 once.
• Highest market share of Fix Price is a plus. However, it also limits the growth of the company to the growth rate of the market..
• As part of the IPO, Fix Price is valued more than in 3 annual revenues. This level is typical for information technology organizations, but for ordinary business it looks like overkill.
• Rough estimate of the term, where investments in Fix Price at current P / E multiples can outstrip investments in regular retail, is over 11 years.
• At the IPO, the shares were sold by the current owners of the shares. The company itself did not receive funds.
An article with an in-depth study of Fix Price, comparison with Russian retail chains and foreign counterparts in terms of multipliers, read here: Analysis of Fix Price before IPO. Not the cheapest discounter
