Add a fast-growing company with a massive international market share opportunity to portfolios by buying SharkNinja (SN:NYSE). This household appliance innovator is the group behind two exciting global brands, Shark and Ninja. The clue is in the name.

Shares in the Massachusetts-headquartered company have had a strong run since their New York Stock Exchange debut (31 July), yet they remain modestly valued relative to the firm’s growth potential and have scope to swim higher as well-received new product launches driving an improved market position and earnings upgrades.

Spun-out from Hong Kong’s JS Global Lifestyle (1691:HKG), the $6.8 billion cap designs household appliances ranging from smart vacuum cleaners and air fryers to electric grills, blenders and hairdryers.

CEO Mark Barrocas has described SharkNinja as a ‘consumer-solving engine’; by bringing disruptive consumer products one after another to a massive, fragmented market and entering new product categories, SharkNinja has successfully driven significant growth and market share gains.

Shares believes the stock market newcomer’s products, which are sold through key retailers including Amazon (AMZN:NASDAQ), Walmart (WMT:NYSE), Currys (CURY), Argos and distributors around the world, will be a big hit with consumers this Christmas. Its portfolio of cooking and beverage appliances and food preparation appliances looks particularly well placed and strong sell-through and re-stocking from customers could prove the catalyst for further upgrades from the company.

SharkNinja raised its full year 2023 sales and profit outlook following forecast-beating results (9 November) for the third quarter to September. These revealed a 38.4% surge in adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to $208.7 million on sales up 13.1% to nearly $1.1 billion. Encouragingly, Barrocas highlighted ‘good momentum as we head into the holiday season’. Management now expects full year 2023 sales to increase by 11.5% to 12.5% year-on-year, up from previous guidance of growth in the 9% to 11% range.

The company also reported a significant uptick in quarterly gross margin to 45.5% thanks to supply chain tailwinds, cost efficiencies and price increases, not to mention strong, higher margin direct-to-consumer sales, notably in the beauty category. Flush with $170.4 million cash, SharkNinja also treated shareholders to a $1.08 per share special dividend.

Based on Stockopedia data, SharkNinja trades on a prospective price to earnings ratio of 15.6 for the year to December 2023, falling to 14.8 times for 2024. There are risks to weigh as the bulk of sales are derived from North America, where consumers are feeling the pinch, and SharkNinja has significant exposure to China, where geopolitical tensions with the US could create future problems.

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