Hey Guys, here is another great stock idea (a post i made on HC as well). So currently the market is quite hot, rightfully so or not, some companies are trading at insane multiples (XRO). However, i think i may have found a true DIAMOND IN THE ROUGH with amazing growth potential, a stellar dividend and a fairly defensive business model.

SSG: $0.65 - Shaver Shop Group

Market Cap $81.94m

Enterprise Value: $88.39m

Revenue: $169.44m

SSG in my opinion is highly underrated and severely undervalued. While SSG is not as glamorous as other shares out there, I see a potential upside of $2-$2.50 within the next 3-5 years. $81 million market cap with $169 million in revenue. There are companies valued at a billion dollars making less than $100m in revenue. Shaver Shop is a highly reputable brand which has store stationed in prime locations throughout AUS & NZ and a continuing growing online presence. With the personal care industry set to claw over $3 billion annually.

Currently management are in the process of buying back all franchised outlets and renovating them to for greater aesthetic appeal, all information can be found in the annual report (https://www.listcorp.com/asx/ssg/shaver-shop-group-limited/news/ssg-2019-annual-report-2241632.html) . Furthermore, they are making the store experience more personalized for each customer. In addition, they are in the middle of rolling out new CRM software, to understand their customers better for greater customer retention. Management are increasing their number of owned stores every year and will do for the coming years

Management is very competent, with the CEO Cameron Fox having worked in management for Gillette (correct me if I am wrong)

i think SSG has large potential upside and pays a 7% dividend. See discounted cash flows below:

- Current EPS is 0.06

- Expected EPS growth: 18% annually

- Earnings projected forward at 5 years

- Leveled off at the industry average 6% there after

- 11% discount rate

IV: $2.09 - 322% growth over 5 years (margin of safety $1.045)(https://app.stockopedia.com/share-prices/shaver-shop-ASX:SSG)

If we are to be conservative

- Current EPS is 0.06- Expected EPS growth: 12% annually

- Earnings projected forward at 5 years

- Leveled off at the industry average 6% per year there after

- 11% discount rate

IV: $1.64 - 252% growth over 5 years (margin of safety= $0.82)(https://app.stockopedia.com/share-prices/shaver-shop-ASX:SSG)

Incredible upside, fairly straight forward defensive business model. Strong brand name and widely known across Australia. The current price according to my calculations are within margin of safety prices. Simply Wall St puts fair values around $3.29, take that as you may.(https://simplywall.st/stocks/au/retail/asx-ssg/shaver-shop-group-shares)