Vistry is a UK based Homebuilder, with a highly leveraged Balance Sheet and substantial amounts of capital tied up in unsold built homes.
They're aggressively discounting these homes to increase cash generation and reduce Debt.
This strategy fixes the problematic Balance Sheet but temporarily depresses profit margins.
Investor sentiment is at an all-time low, as all they see is profit warning + high leverage. But this ignores the recovery story.
Let me know what you think and have heard.
I spent a while looking at their financial statements, and think there's definitely an opportunity here, and wrote up an investment report.
Full Report (yes, its free): [https://pnresearch.substack.com/p/vistry-plc-lse-investment-analysis?r=8jzvem](https://pnresearch.substack.com/p/vistry-plc-lse-investment-analysis?r=8jzvem)
Note: This was not a straightforward credit analysis and report, as the accounting and financing structure for homebuilders is quite different from typical companies. Pushback appreciated.
