Dixons Carphone: Revisiting Idea at Lower Price After Two Years

Dominic Fisher of Thistledown Investment Management presented his in-depth thesis on Dixons Carphone (UK: DC) at European Investing Summit 2019.

Thesis summary:

Dixons Carphone is the largest electrical retailer in the UK, Scandinavia and Greece with sales of £10bn and a market capitalisation of £1.4bn. The business has market shares above 20% in all markets and has a significant online presence. Fundamental changes to the market in mobile phones in the United Kingdom, turnover of £2bn, have destroyed returns and consumed working capital. The company, under new management, has moved to deal with the issues and the first signs of success are visible in a working capital inflow. Success in this strategy, although expensive; the company has written off nearly £500m and expects a loss of £100m in the current year, should lead to cash generation from working capital and a company valued at over £2.7bn assuming nothing more than a return to average margins and a below-market rating.

Access Dominic’s session on Dixons Carphone at European Investing Summit 2017.

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About the instructor:

Dominic Fisher has been investing since 1988 working at a number of London based firms. He founded Thistledown Investment Management in 2009. He is the largest investor in the VT Thistledown Income Fund which follows a value discipline. He heads the investment committee of the Royal Hospital Chelsea, a director of Aberforth Split Level Investment Trust and Trustee of the Clinical Human Factors Group.