Edison Investment Research Limited
London, UK, 1 November 2022
The Pebble Group (PEBB): Initiation — Differentiated positions in promotional products
The Pebble Group operates within the large, global promotional products market, estimated by management at $50bn, under a highly experienced team. The group combines two operations: a fast-growing, high-margin SaaS business supplying independent distributors of promotional goods; and a dependable and expanding international business supporting brand engagement programmes for major global brands. The group has a strong balance sheet, with end FY21 net cash (excluding leases) of £12.1m, set to be exceeded in the current year. The share price does not, in our opinion, reflect the group’s positioning or opportunities.
We have looked at an earnings-based sum-of-the-parts and used a DCF methodology. The former is based on the peer group EV/EBITDA multiples of US SaaS companies capitalised below $1.5bn for Facilisgroup and of marketing services companies for Brand Addition. These methods both give an implied share price of 133p, with Facilisgroup roughly half the value inherent in the group.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Fiona Orford-Williams +44 (0)20 3077 5739 firstname.lastname@example.org
Max Hayes + 44 (0)20 3077 5700 email@example.com
Learn more at www.edisongroup.com and connect with Edison on:
Dissemination of a CORPORATE NEWS, transmitted by EQS Group.