skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. GOOS: This company's shares are trading below their ipo price. [Canada Goose Holdings Inc. Subordinate Voting Shares]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: This company's shares are trading below their ipo price. Are there any rumours of ruminations that it might go private or get bought out?
Asked by Murray on February 13, 2024
5i Research Answer:

We have not heard any credible rumours of GOOS being bought out or going private, but a few articles did come out suggesting the plausibility of this potential. The following article sheds some light on this possibility: https://www.nasdaq.com/articles/canada-goose-stock-nyse:goos:-low-valuation-makes-it-an-acquisition-target

The main point highlighted in the article suggests that GOOS would be a good acquisition target due to it depressed valuation. GOOS currently trades at 18.7x forward-earnings which is a discount relative to other luxury goods producers. GOOS does have high debt with debt-to-equity currently at 1.84x which removes some of the acquistion appeal. Nonetheless, we do not see any news indicating any traction or talks of GOOS being acquired. We doubt management would entertain offers near current levels.