I have been involved in the automotive industry for some years and have regularly assessed DMS products for clients. Pinewood comes out on top in almost all cases, so in my view it is best in class. If you factor in the significant impact of signing up all the Lithia dealerships and the fact that they have an aggressive acquisition strategy i would expect them to keep adding to the Pinewood customer base as and when they acquire more dealer groups.
I was thinking about your comments regarding the TAM.
A quick Google puts 2022 registered vehicles in 3 countries as follows:
USA 285M
Canada 26M
UK 32M
I’m not questioning your dealer numbers of USA 18K, Canada 3K & UK 13K, but it’s odd that UK has 2/3 the dealers of USA, but only 1/10 of the vehicles.
I’d expect all the totals in USA to be about 10x the UK figure, although maybe USA just has jumbo size dealerships or massive direct sales.
Hi Ornamental, I took the US and Canada numbers (i.e. 18,000 dealers worth £2.6bn and 3,000 dealers in Canada) from a PDG research article from Zeus dated 20/09/23. However for the UK I searched Google and used the IBIS world number. IBIS world speaks to there being 69,149 car dealers in the USA, so assuming Zeus' numbers are correct then you're right the UK number is too high pro rata.
The 18k and 3k numbers are for NEW car dealerships. The note says there are "multiples more used car dealers" in North America. This is where your confusion lies. You are not comparing like with like
Firstly, great summary.
I have been involved in the automotive industry for some years and have regularly assessed DMS products for clients. Pinewood comes out on top in almost all cases, so in my view it is best in class. If you factor in the significant impact of signing up all the Lithia dealerships and the fact that they have an aggressive acquisition strategy i would expect them to keep adding to the Pinewood customer base as and when they acquire more dealer groups.
Does you analysis include the company planning to 40,979,118 new Ordinary Shares for employee share incentives in Jan 2024?
I was thinking about your comments regarding the TAM.
A quick Google puts 2022 registered vehicles in 3 countries as follows:
USA 285M
Canada 26M
UK 32M
I’m not questioning your dealer numbers of USA 18K, Canada 3K & UK 13K, but it’s odd that UK has 2/3 the dealers of USA, but only 1/10 of the vehicles.
I’d expect all the totals in USA to be about 10x the UK figure, although maybe USA just has jumbo size dealerships or massive direct sales.
Keep up the good work.
Hi Ornamental, I took the US and Canada numbers (i.e. 18,000 dealers worth £2.6bn and 3,000 dealers in Canada) from a PDG research article from Zeus dated 20/09/23. However for the UK I searched Google and used the IBIS world number. IBIS world speaks to there being 69,149 car dealers in the USA, so assuming Zeus' numbers are correct then you're right the UK number is too high pro rata.
Source:
https://www.ibisworld.com/united-kingdom/number-of-businesses/used-car-light-motor-vehicle-dealers/2576/
https://www.ibisworld.com/industry-statistics/number-of-businesses/new-car-dealers-united-states/
The 18k and 3k numbers are for NEW car dealerships. The note says there are "multiples more used car dealers" in North America. This is where your confusion lies. You are not comparing like with like