Summary
- Bed Bath & Beyond has had a roller coaster year.
- What it's lacking in revenue growth rates, it more than makes up in cash flows.
- Even if we consider the size of the task ahead, and Bed Bath's potential risks, there's still a lot of upside potential at approximately $2 billion market cap.
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Investment Thesis
Bed Bath & Beyond (BBBY) is a brick-and-mortar retailer. It's trying to improve its strategy and position itself as a digital-first retailer. Even though its growth rate is anemic, its cash flows are robust.
As I discussed with Deep Value Returns Marketplace members last week, at less than 7x normalized free cash flow, there's already a lot of negativity already being priced in.
