First of all, the following text is AI-generated😅As a busy dad, it is much faster, but of course the information for everyone to check the numbers, data and facts on their own responsibility.
Here we go...
I'm currently taking a closer look at Jumbo, the Greek retailer of toys, household items & furniture - and the fundamentals are exciting.
🔹 Business model
Jumbo is the market leader in Greece and is expanding in South East Europe (Cyprus, Bulgaria, Romania). The company offers a very wide range of products from toys and household items to furniture and seasonal goods.
The business model is reminiscent of a mixture of IKEA + Toys'R'Us, but with a focus on low prices and a high proportion of own brands.
🔹 Growth & profitability
- Turnover: 2024 at ~€1.15 billion, growth +6.3% compared to 2023
- EBITDA 2024: approx. €424 million
- Net income 2024: approx. €320 million
- Gross margin: stable at ~55%
- 👉 Jumbo thus demonstrates high and stable profitability - unusually strong for the retail sector
🔹 Balance sheet & debt
- Cash and cash equivalents exceed all debt and lease liabilities
- Surplus liquidity: ~€372 million
- Debt/equity ratio practically at 0
- 👉 Jumbo is therefore net debt-free and extremely solid financially.
🔹 Return on capital employed (ROCE)
Particularly important for me: How efficiently does Jumbo use its capital?
- ROCE 2024: ~25 %
- For comparison: Many European retailers are only at 8-12%
- 👉 Jumbo therefore achieves an above-average return on capital, which speaks for a very efficient use of capital.
🔹 Valuation
- P/E ratio (trailing): approx. 12.8-13×
- EV/EBITDA: approx. 8.7×
- The share has already gained >20% in 2024, but still looks moderately valued compared to the sector.
- Dividend policy: regular, attractive distributions.
🔹 Moat (unique selling points)
Why is Jumbo so successful compared to the competition?
Lowest cost structure thanks to direct imports & own brands
Everything under one roof range: from toys to furniture, supplemented seasonally
Price leader in the region, high customer loyalty
Strong market position in Greece & South East Europe - little direct competition
Own real estate → lower fixed costs, substance in the balance sheet
Net cash balance sheet → high flexibility for expansion & dividends
This combination ensures stable margins and above-average returns on capital.
🔹 My assessment
Jumbo united:
✅ Solid growth
✅ Very high efficiency (ROCE ~25%)
✅ Debt-free balance sheet with net cash
✅ Moderate valuation despite share price increase
✅ A clear moat in the business model
To me, this looks like an exciting long-term investment story - value with a quality factor.
👉 Question for you:
What do you think of Jumbo? Do you already have the share on your radar or even in your portfolio?