Equity Story

  • The customer as well as supplier base of TAKKT is very fragmented and diverse and can therefore hold a gross margin stability of 14-16% throughout the years. Price sensitivity is further limited due to low average order size.

  • TAKKT’s competitive landscape is strongly influenced by online-only suppliers, however due to the long period to reach break-even entry barriers are still high and the company’s e-commerce presence and focus is continuously rising. The portfolio is very extensive and therefore required a new organizational structure based on customer-type rather than geography.

SWOT Analysis

Strengths

  • Gross margin stability due to fragmented supplier, customer base

  • Price sensitivity limited due to low average order size (c. EUR 500)

  • Long period to reach breakeven, high barrier to entry for potential new entrants

  • Low capex intensity, highly FCF generative across cycle

Weaknesses

  • Organic sales sensitive to changes in GDP growth (PMI indices)

  • High customer acquisition cost

  • Forex translation risk (44% of sales, ca 40% of EBITA in US dollars)

Opportunities

  • Strong growth in e-commerce and increased use of new technology

  • Significant organic growth potential (share gains from stores)

  • Acquisition to fill-in product, regional gaps (scalable platform)

  • Newly implemented organizational structure

  • Relatively balanced end market portfolio

Threats

  • Rising competition from online-only providers

  • Rising online share increases price transparency

  • Current weak end-market demand in US, Hubert might prove structural

  • Very competitive market environment

  • Dependence on fluctuations in customer's market (e.g. automotive)

QUICK FACTS

Investment Score

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