Bonkers Bargain: this automotive retailer is even cheaper
Having endured an immensely challenging period over the pandemic, retailers of second hand motors subsequently benefited from the economic resurgence and shortage of new vehicles. Our Bonkers Bargain covered here looked well placed to thrive in the new trading environment, but, having initially delivered strong returns to shareholders the shares have subsequently fallen back. With a comprehensive online offering starting to deliver, there could be plenty of upside as our updated note here highlights.
Our Bonkers Bargain appears to have a superior financial and online position than many of its peers, providing it with a key competitive advantage as markets reopened. It also trades on a lower valuation than online-only operators, while benefiting from an omni-channel business model delivering high returns on capital. Company background Motorpoint Group (LON:MOTR) is the UK’s largest independent vehicle retailer selling vehicles from a wide range of brands, with a primary focus on cars that are up to two years old that have covered fewer than 15,000 miles - more recently the offering has been expanded to vehciles more than…