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SiteOne Landscape Supply (SITE)
NYSE:SITE
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SiteOne Landscape Supply
(NYSE:SITE)
63Neutral
Positive Factors
Growth Initiatives
Company-Specific Initiatives are expected to drive above-market growth, including expansion in white-spaces and leveraging commercial initiatives.
Market Share Growth
Since its IPO in 2016, SiteOne has significantly increased its share in the North American wholesale landscaping distribution industry.
Negative Factors
End-Market Dynamics
Mixed end-market dynamics are expected to offset the company's initiatives over the next 12 months.
SiteOne Landscape Supply (SITE) vs. S&P 500 (SPY)
Market Cap
$5.60B
Dividend YieldN/A
Average Volume (3M)471.50K
Price to Earnings (P/E)45.6
Beta (1Y)1.47
Revenue Growth5.57%
EPS Growth-28.96%
CountryUS
Employees8,300
SectorIndustrials
Sector Strength69
IndustryIndustrial Equipment Distributors
Share Statistics
EPS (TTM)2.70
Shares Outstanding44,964,924
10 Day Avg. Volume537,215
30 Day Avg. Volume471,502
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.23
Price to Cash Flow (P/CF)11.70
P/FCF Ratio12.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$151.33Price Target Upside22.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
SiteOne Landscape Supply Business Overview & Revenue Model
Company DescriptionSiteOne Landscape Supply, Inc. engages in the distribution of commercial and residential landscape supplies. Its products include outdoor lighting, nursery, landscape supplies, fertilizers, turf protection products, grass seed, turf care equipment, and golf course accessories for green industry professionals. The company was founded in 2001 and is headquartered in Roswell, GA.
How the Company Makes MoneySiteOne Landscape Supply generates revenue primarily through the sale of landscape supplies to professional landscapers and contractors. The company's revenue model is based on wholesale distribution, where it purchases products from manufacturers and resells them to its customers at a markup. Key revenue streams include the sale of irrigation and drainage products, nursery goods, pesticides and fertilizers, as well as outdoor lighting and hardscape materials. SiteOne also benefits from strong supplier relationships, allowing it to offer a wide range of products and competitive pricing. Additionally, the company leverages economies of scale to optimize its distribution network and enhance profitability.
SiteOne Landscape Supply Financial Statement Overview
Summary
SiteOne Landscape Supply shows strong revenue growth and an improved balance sheet with a reduced debt-to-equity ratio. However, profitability challenges and inconsistent cash flows, particularly the recent decline in free cash flow, are concerns impacting its overall financial performance.Income Statement
SiteOne Landscape Supply has shown a strong revenue growth trajectory over the years, with revenue increasing from $2.35 billion in 2019 to $4.4 billion in 2024. However, the gross profit margin has been inconsistent, with the most recent annual report showing no net income, partly due to a negative EBIT. The company has experienced fluctuations in profitability, as reflected in the varying EBIT and EBITDA margins over the years.68
Positive
Balance Sheet
The balance sheet reflects a strong equity position, with stockholders' equity growing from $393 million in 2019 to $1.57 billion in 2024. The debt-to-equity ratio has improved significantly, indicating reduced leverage risk. The company's equity ratio has also improved, showing a strong capital structure. However, the high total liabilities could pose a potential risk if not managed properly.75
Positive
Cash Flow
SiteOne Landscape Supply's cash flow from operations has been positive, although there was a notable drop in free cash flow in the most recent period. The company has generally maintained a positive free cash flow, which is crucial for sustainability and growth. However, the absence of significant cash flow data in the latest report poses challenges in assessing the current liquidity position.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.40M | 4.30B | 4.01B | 3.48B | 2.70B | Gross Profit |
| 4.40M | 1.49B | 1.42B | 1.21B | 901.30M | EBIT |
| -7.90M | 250.30M | 333.10M | 313.70M | 179.80M | EBITDA |
| 331.30M | 378.00M | 436.90M | 396.70M | 247.00M | Net Income Common Stockholders |
| 123.60M | 173.40M | 245.40M | 238.40M | 121.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 107.10M | 82.50M | 29.10M | 53.70M | 55.20M | Total Assets |
| 3.07B | 2.83B | 2.53B | 2.12B | 1.70B | Total Debt |
| 94.50M | 861.40M | 739.50M | 606.90M | 568.00M | Net Debt |
| -12.60M | 778.90M | 710.40M | 553.20M | 512.80M | Total Liabilities |
| 1.48B | 1.34B | 1.23B | 1.06B | 900.70M | Stockholders Equity |
| 1.57B | 1.49B | 1.30B | 1.06B | 795.00M |
| Cash Flow | Free Cash Flow | |||
| 238.60M | 261.50M | 175.50M | 173.80M | 203.60M | Operating Cash Flow |
| 283.40M | 297.50M | 217.20M | 210.80M | 229.40M | Investing Cash Flow |
| -177.10M | -226.00M | -284.40M | -182.00M | -184.20M | Financing Cash Flow |
| -80.90M | -18.30M | 43.40M | -30.40M | -9.10M |
SiteOne Landscape Supply Technical Analysis
Negative
123.28
Price Trends
134.90
Negative
139.77
Negative
138.80
Negative
Market Momentum
-3.73
Positive
37.42
Neutral
42.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITE, the sentiment is Negative. The current price of 123.28 is below the 20-day moving average (MA) of 131.40, below the 50-day MA of 134.90, and below the 200-day MA of 138.80, indicating a bearish trend. The MACD of -3.73 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SITE.
SiteOne Landscape Supply Risk Analysis
SiteOne Landscape Supply disclosed 37 risk factors in its most recent earnings report. SiteOne Landscape Supply reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SiteOne Landscape Supply Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $365.72B | 24.69 | 385.37% | 2.44% | 4.48% | -1.27% | |
65 Neutral | $14.77B | 14.31 | 23.88% | ― | -4.08% | -24.71% | |
65 Neutral | $2.71B | 19.57 | 10.37% | ― | 3.71% | -49.38% | |
63 Neutral | $12.93B | 30.40 | 33.41% | 1.37% | -4.16% | -15.44% | |
63 Neutral | $5.60B | 45.64 | 8.08% | ― | 5.57% | -28.96% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
59 Neutral | $131.38B | 19.04 | -51.07% | 1.96% | -3.13% | -7.21% |
* Industrials Sector Average
Performance Comparison
SITE
SiteOne Landscape Supply
123.28
-45.33
-26.88%
BLDR
Builders Firstsource
129.46
-65.96
-33.75%
HD
Home Depot
364.73
-5.70
-1.54%
LOW
Lowe's
222.66
-17.56
-7.31%
POOL
Pool
333.34
-56.68
-14.53%
GMS
GMS
70.36
-22.16
-23.95%
SiteOne Landscape Supply Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -7.42% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced perspective with several growth and strategic achievements, such as positive sales growth, successful integration efforts, strong acquisition strategy, and digital sales expansion. However, ongoing challenges like price deflation in key products, decreased adjusted EBITDA, and a net loss in the fourth quarter weigh down the overall results.Highlights
Positive Organic Daily Sales Growth
Achieved 1% organic daily sales growth in the fourth quarter despite a 3% price deflation headwind. Improvements noted from negative 3% in Q2 and negative 1% in Q3 of 2024.
Successful Integration and Expansion
Pioneer fully integrated with 22 consolidations and closures in 2024. Added seven companies with $200 million in trailing 12-month revenue, and first acquisition of 2025 completed in January.
Robust Acquisition Strategy
99 acquisitions completed since 2014, with a strong pipeline for future growth. Recent acquisitions include Devil Mountain, OakStreet Wholesale Nursery, and Custom Stone.
Digital Sales Growth
Digital sales increased by 180% in 2024, significantly boosting customer connectivity and market share.
Lowlights
Price Deflation Challenges
Pricing declined 3% in 2024, primarily due to double-digit declines in PVC pipe and grass seed.
Decreased Adjusted EBITDA
Adjusted EBITDA decreased 8% year-over-year to $378.2 million, with a margin decline of 120 basis points to 8.3%.
Net Loss in Fourth Quarter
Reported a net loss of $21.7 million for the fourth quarter due to higher SG&A and reduced gross margin.
Company Guidance
During the SiteOne Landscape Supply Inc. Fourth Quarter 2024 Earnings Call, several key metrics and guidance details were provided. The company reported a 1% organic daily sales growth in Q4 2024, despite a 3% price deflation headwind, and achieved a 6% net sales growth for the full year. The adjusted EBITDA for 2024 decreased by 8% to $378.2 million, with an adjusted EBITDA margin decline of 120 basis points to 8.3%. SiteOne completed 99 acquisitions since 2014, adding $2 billion in trailing 12-month net sales, and plans to continue its acquisition strategy in 2025. Looking ahead, the company expects low single-digit organic daily sales growth in 2025, with full-year adjusted EBITDA projected between $400 million and $430 million, driven by commercial initiatives, acquisition contributions, and SG&A leverage. Price deflation is expected to moderate, with prices flat to down 1% for the year, while gross margin is anticipated to improve.SiteOne Landscape Supply Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
SiteOne Awards Performance Stock Units to Executives
Neutral
Feb 10, 2025
On February 5, 2025, SiteOne Landscape Supply’s Human Resources and Compensation Committee awarded performance stock units to several officers under its 2020 Omnibus Equity Incentive Plan. These units are contingent on the company’s performance over three years, measured by EBITA growth and return on invested capital. This initiative aims to align executive compensation with company performance, potentially impacting operational efficiency and stakeholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.