steiner leisure ltd nasdaqgs stnr
Download
Skip this Video
Download Presentation
Steiner Leisure Ltd. ( NasdaqGS : STNR)

Loading in 2 Seconds...

play fullscreen
1 / 21

Steiner Leisure Ltd. ( NasdaqGS : STNR) - PowerPoint PPT Presentation


  • 139 Views
  • Uploaded on

Steiner Leisure Ltd. ( NasdaqGS : STNR). April 17, 2014. Guanrong (Rachel) Fu Marnie Georges Jing Feng (Jeffrey) Li. Agenda. Introduction Company overview Macroeconomic outlook and industry overview Relevant stock market prospects Financial analysis and projections Valuation

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Steiner Leisure Ltd. ( NasdaqGS : STNR)' - matty


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
steiner leisure ltd nasdaqgs stnr

Steiner Leisure Ltd. (NasdaqGS: STNR)

April 17, 2014

Guanrong (Rachel) Fu

Marnie GeorgesJing Feng (Jeffrey) Li

agenda
Agenda
  • Introduction
  • Company overview
  • Macroeconomic outlook and industry overview
  • Relevant stock market prospects
  • Financial analysis and projections
  • Valuation
  • Recommendation
company overview
Company Overview
  • Founded in 1934
  • Worldwide provider and innovator in the fields of beauty, wellness, and education
  • Employees: 7,318
  • Market Cap: $632 MM
  • Industry Classification: Specialized Consumer Services
  • Closing Price: $44.11

Revenue by Segment

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

business overview spa services
Business Overview: Spa Services
  • Business Overview:
    • Relaxing therapeutic spas featuring quality beauty and body treatments
    • Practices through cruise-based and land-based hotel and standalone spas
  • Cruise Ship Spa Performance:
    • Provide services including almost all major cruise lines in North America
    • By 2014, serve 156 cruise ships representing 18 cruise lines
    • Exclusive rights to offer services and sell products

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

business overview spa services1
Business Overview: Spa Services
  • Land-based Spas:
    • Hotel-based Spas:
      • Offer services at 56 urban hotels in 16 countries
      • Sizes from 625 ft.2 to 32,000 ft.2
      • Exclusive rights with Starwood
    • Day Spa:
      • Operates 5 day spas worldwide
      • Similar services to hotel spas
    • Licensed Spas
      • Licensed one brand to Thailand-based hotel operator

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

risk overview spa services
Risk Overview: Spa Services

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

business overview laser hair removal
Business Overview: Laser Hair Removal
  • Business Overview:
    • Acquired Ideal Image Development Inc. in 2011
    • Provides non-invasive procedures for the removal of unwanted facial and body hair
  • Current Performance:
    • 58 new locations as of 2014
    • Operates 109 laser hair removal centers in 31 states and one center in Canada
    • Franchises brand to 17 additional centers
  • Potential Risks
    • Capital costs for new centers
    • May not find ideal locations for new centers
    • Need specific medical personnel in high demand

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

business overview production
Business Overview: Production
  • Provides high-quality personal care products through cruise ship spas, land-based spas, Ideal Image centers, department stores, and e-commerce
  • Generates 30% of STNR revenues
  • Highly competitive market reliant on brand image
  • Ingredients sourced from elite European manufacturers with high bargaining power

Key Brands

Bliss

Elemis

Jou

La Thérapie

Remède

Steiner

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

business overview education
Business Overview: Education
    • Full-time and part-time programs in massage therapy , beauty and skin care
    • Accredited by several industry boards
    • Began in 1999 with expansion through acquisitions
    • 4,663 students
  • Potential Risks:
    • Title IV Compliance issues
    • Most students receive financial aid
    • Accreditation and licensing requirements changing

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

market power analysis
Market Power Analysis

Steiner’s recent acquisition and industry trends provide new opportunities moving forward.

Sources: Company 10-K filings, Capital IQ, Yahoo! Finance.

spa industry drivers
Spa Industry Drivers
  • Increased affluence
  • More baby boomers (39.0% of spa users) demanding anti-aging services
  • Mature industry offering additional services and products
  • Consumer tastes and preferences

Sources: 1. “Health and Wellness Spas” Report. IBISWorld. March 2013.

2. Bureau of Labor Statistics’ Consumer Expenditure Survey.

3. “Cosmetology and Beauty Schools.” IBISWorld. May 2012

steiner segment industries
Steiner Segment Industries

Cruise Ships

Beauty Product Sales

Industry revenue CAGR of 7.5% to $7.2 billion by 2018

Marketing drives sales

High R&D expenditures

Low revenue volatility due to increasing global demand and aging consumers

  • 34.4% of all cruise destinations are in the Caribbean
  • Safety concerns remain prominent

Sources: 1. “Ocean Transportation.” IBISWorld.

2. “Cosmetic Manufacturing.” IBISWorld.

steiner segment industries1
Steiner Segment Industries

Hair Removal Services

Health and Beauty Schools

4.0% CAGR through 2017

Accredited schools qualify for Title IV funding

Licensing requirements ensure attractive career

Growth from spas, medi-spas, and salons supporting increased enrollment

  • Growth among males and females
  • Diversification of services and technology

Sources: 1. “Cosmetology and Beauty Schools.” IBISWorld.

2. “Hair Removal Services.” IBISWorld.

industry attractiveness
Industry Attractiveness

STNR operates in a competitive industry with high threats of substitutes and large opportunities for growth.

HIGH

MEDIUM

LOW

HIGH

HIGH

Sources:

1. IBISWorld Industry Reports.

2. Global Spa and Wellness Summit.

historical prices
Historical Prices

Though the stock price has increased for the past few years, recent concerns have surfaced in a lower stock price.

current valuation
Current Valuation

Current Stock Price: $44.11

Our Valuation: $42.05

recommendation
Recommendation

WATCH LIST

Future Outlook and Concerns

  • Stabilized growth in these segments: education, spas, and laser hair removal
  • New and continuing contracts with major hotel and cruise operators
  • Increase cost efficiencies in the products segment
ad