Company Overview:
SharkNinja, a consumer products and technology company, recently became an independent public company after completing its separation from JS Global. This transition was finalized on July 31, 2023, and subsequently, SharkNinja began trading on the New York Stock Exchange under the ticker symbol "SN”
SharkNinja (SN) is two, scaled, and diverse growing brands.
Shark entails around 11 subcategories with around 2 billion in sales while Ninja has around 16 sub-categories with 1.7 billion in sales. They define themselves as “ the people who built a consumer problem solving engine” that solve consumer problems others cant, or don’t see. They create 5-star rated innovative lifestyle solutions for consumers in global markets with a portfolio of trusted brands.
As you can see above, their products range from mops and hair dryers to blenders, ice cream makers, outdoor grills and food processors. I personally use their coffee maker and absolutely love it.
On their Nov 9th conference call, they broke down their offerings into 4 major categories
Cleaning- Vacuums, floorcare products, steam mops etc
Cooking and Beverage - air fryers, multicookers, outdoor grills and ovens, carbonation products etc
Food Prep- Blenders, food processors, ice cream makers etc
Other- beauty products, home environmental products, air purifiers, humidifiers etc.
Within the two groups, they have combined for a total of 20% CAGR growth in net sales with 26% CAGR in the last 4 years or so. Therefore, their sales are starting to accelerate as they offer more adjacent products and grow their loyal customer base.
Three Pillar Growth Strategy
On their Nov 9th conference call, Mark Adam (CEO) explained their 3 pillar growth strategy.
Growing share in existing categories
“Grow market share through relentless focus on new innovation to keep the consumer exited for what’s next” - Mark Adam
Entering new and adjacent categories
Internal Expansion
Strongest growth driver with sales up 80% with total addressable market of 100 billion and growing- Mark Adam
Putting It Together- Total Addressable Market and the Global Game
A primary factor propelling SharkNinja's expansion is the Total Addressable Market (TAM) within the international arena. Their growth strategy hinges on leveraging an inventive design engine constantly churning out innovative products, a consistent history of capturing market share within minimal time frames, and a superior supply chain management system.
Currently, SharkNinja is in the initial phases of penetrating markets in Italy, Spain, and Latin America. Notably, 80% of their current product development efforts are aimed at catering to the global consumer base.
They have a good history of growing market share quickly once they get established. As I look into this company, I believe that is where the true “story” is.
Can they continue to grow their international sales and take market share at the same pace they have done in the past? That is the question whether this turns into a great compounder or just your average consumer products company.
Chart
Being a new issue, there is not a lot of price history as this builds out its first base. However, price is starting to look really constructive (I have a position).
I like how SN has put in a higher low and starting to form a tight trading range. Those two bars of accumulation recently are an added bonus.
Ideally, I would love to see price put in ONE more higher low, get really tight, and then blast through the breakout pivot on heavy volume. That is the scenario that would cause me to get really aggressive in this name to the long side.
Conl:
I hope this introduction into this consumer product name has fired up some idea generation. I am excited to see how this one plays out.
—NS