Market's view on Kitwave
Published on April 2024
- Kitwave Group is recognized for its effective handling of small order deliveries and management of chilled products, despite initial barriers such as maintaining a vast stock catalogue, efficient distribution, and a network of suppliers and customers.
- Stock watchers have received dividends from Kitwave, indicating a positive cash flow and shareholder returns.
- Concerns are raised about the low barriers to entry in the grocery delivery market, despite Kitwave’s capacity to generate cash and pay dividends.
- Kitwave’s acquisition strategies and its aim towards achieving a £1Bn turnover are highlighted following an interview with the new CEO, Ben Maxted.
- A significant concern is noted about a director’s spouse selling a considerable number of shares, raising questions about insider confidence.
- Financial analysis suggests that Kitwave is undervalued, with strong cash generation and robust balance sheet, which might attract further consolidation opportunities.
- Predictions are made about the potential for Kitwave to be taken over within three years due to its appealing financial metrics and market position.