Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

Analysis on GARP with strong economic moats

GARP with strong economic moats

Equity Bottom-Up

<ul><li>Ozon Holdings is an e-commerce platform operating in Russia that offers the broadest multi-category product selections.</li><li>The company is scaling up very fast and, in Q4, posted over 140% y/y growth in GMV (from 127% in Q3).</li><li>Russia has one of the lowest e-commerce penetrations around 6% in line with LatAm) but it relies on an 83% internet penetration with 113 mln users (first in Europe).</li><li>Ozon has recently launched a loan and a credit service dedicated to its marketplace participants (Ozon platform and Ozon.Card) in the effort to support further users' adoption of its services and high order frequency.</li><li>The valuation seems compelling as the stock is trading at 3.6x Ev/Sales 2022e. We estimate an equity value in the region of $15,6bn, which delivers $75.2 per share with a potential upside of around 34.</li></ul>

Ozon Holdings is an e-commerce platform operating in Russia that offers the broadest multi-category product selections.The company is scaling up very fast and, in Q4, posted over 140% y/y growth in GMV (from 127% in Q3).Russia has one of the lowest e-commerce penetrations around 6% in line with LatAm) but it relies on an 83% internet penetration with 113 mln users (first in Europe).Ozon has recently launched a loan and a credit service dedicated to its marketplace participants (Ozon platform and Ozon.Card) in the effort to support further users' adoption of its services and high order frequency.The valuation seems compelling as the stock is trading at 3.6x Ev/Sales 2022e. We estimate an equity value in the region of $15,6bn, which delivers $75.2 per share with a potential upside of around 34.

Ozon Holdings: A Gem Of The Russian E-Commerce Industry

Ozon Holdings PLC

Ozon Holdings: A Gem Of The Russian E-Commerce Industry