Valens Equity Weekly Insights - 2022 12 20
Atkore (ATKR) has developed a smart bolt-on acquisition strategy to add new wire storage, and mounting products to its portfolio. Uniform Accounting highlights that the market is not pricing in any tailwinds from the IoT boom, or from efficiencies gained as it grows its product portfolio.Atkore supplies all of the wires, storage, and mounting systems required for enterprises to power the IoT within their facilities, and it uses a bolt-on acquisition strategy and its best-in- class distribution network to consistently growing its offerings. As Atkore continues adding new patent-protected products to its portfolio, it is likely to see strong fundamental momentum the market isn't pricing in, both in terms of growth and profitability.
Atkore's management is incentivized to keep driving returns higher while focusing on growth through smart strategic acquisitions.
Management confidence in the Q4 earnings call about integrating acquisitions and retaining revenue growth suggests management is executing well.
LivaNova (LIVN) is being removed from the Conviction Long List. The company hasn't returned to growth as the pandemic has subsided. As such, we are closing LivaNova up 25%.
ATKR
Atkore International Group is a holding company. Through its subsidiaries, the company is engaged as a manufacturer of Electrical Raceway products primarily for the non-residential construction and renovation markets and Mechanical Products and Solutions (MP&S) for the construction and industrial markets. The company's segments are: Electrical Raceway, which ufactures products that deploy, isolate and protect a structure's electrical circuitry from the original power source to the final outlet; and MP&S, which provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications.
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