The second largest owner of veterinary practices in the UK, including labs., crematoria and an online store. The company's share price plummeted due to a market investigation from the CMA. A highly undervalued stock in which patience can be very lucrative.
It was my analysis of CVS Group in 2010 probably that had me buying Greencross Limited, an Australian peer that had a large margin of safety at the time trading at around 0.70 AUD. Both businesses have developed along the lines of what was expected. Now however, we see CVS Group actually entering the Australian market. Independent practices in the UK have declined a lot. Others have jumped on the bandwagon after seeing how this business model works. I am afraid growth of market share will become more difficult as competition has clearly increased a lot. That might put pressure on margins. We've probably also seen a COVID bump to pet ownership that is cause for some worries. Have not looked at the indebtedness but would be less inclined from a fundamental perspective to own it now than back in 2010.
It was my analysis of CVS Group in 2010 probably that had me buying Greencross Limited, an Australian peer that had a large margin of safety at the time trading at around 0.70 AUD. Both businesses have developed along the lines of what was expected. Now however, we see CVS Group actually entering the Australian market. Independent practices in the UK have declined a lot. Others have jumped on the bandwagon after seeing how this business model works. I am afraid growth of market share will become more difficult as competition has clearly increased a lot. That might put pressure on margins. We've probably also seen a COVID bump to pet ownership that is cause for some worries. Have not looked at the indebtedness but would be less inclined from a fundamental perspective to own it now than back in 2010.