One of the more impressive Canadian shares under the radar that many investors may not pay attention to at the moment is Kits Eyecare (TSX: Kits). That is a pity, given the stock graph below. Tree.
Looking at this graph above, and Kits Eyecare’s more than 90% rise on an annual basis alone, it is difficult to ignore these shares for much longer. Let us dive in the question of whether this company, with a value of around $ 500 million, is worth investing in now.
A small CAP stock with large growth
One of the main reasons why Kits Eyecare has seen the kind of rating of stock price that it has lately is the impressive sales growth of the company of more than 30% in the past year. As you would expect with such an increase, betting investors that the line of progressive and contact lenses, glasses and frames from the Kits brand, as well as other glasses products from different brands, should continue to see strong growth over time.
Until now, the strong growth of the kits comes from the Canadian market. With more Canadian consumers who use a “sale at home” approach to goods and services, this is a trend that is a disproportionate benefit for Kits Eyecare and can be a sustainable trend. At least, that’s what the market seems to be at the moment.
What do the basic principles say?
Unlike other fast-growing companies with mostly top-line growth, Kits Eyecare actually makes a profit. But given how fast this company is growing, the price of the company is plural high (in the triple figures), so that is something to keep in mind.
Investors do not seem to mind, as long as Kits Eyecare can continue to solve an adapted EBITDA growth over time. Indeed, in the past 11 quarters, investors have given positively adapted EBITDA, and this is another trend that looks sustainable from here.
If Kits Eyecare can continue to expand its customer base and grow his product portfolio, this is a growth form that can certainly have more room to walk away from here. In my opinion, this is a growth supply to consider continuing on pullbacks. For those more aggressive growth investors who are there, I don’t see why buying this share at the current level would be rejected.
#Kits #Eyecare #Stock #year #increases #year #rich