|Shares Out. (in M):||13||P/E||8||8|
|Market Cap (in $M):||95||P/FCF||8||8|
|Net Debt (in $M):||30||EBIT||11||11|
Cherokee Inc. (CHKE) is a licensor of various brands (Cherokee, Tony Hawk, Liz Lange, Everyday California, Hi-Tec) covering various product categories (Kids and Adult Apparel, Footwear, etc.) to retailers and wholesalers partners across the globe.
The valuation is cheap today, in the midst of a tough retail environment and the integration of a large acquisition and the continued transition away from their largest and longest running licensing agreement. At about 7.5x to 10x depressed-EPS, I think Cherokee offers value in a very overvalued market.
The unique business model is that Cherokee carries no inventory, but supports their retailer and wholesale licensees with an in-house design team and fully developed marketing programs. They refer to this as their 360o platform.