Report
Valens Research

HDS - Embedded Expectations Analysis - 2020 08 27

HD Supply Holdings, Inc. (HDS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.5x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management appears concerned about the property improvement business, reduced salaries, and sales

Specifically, management may lack confidence in their ability to work closely with customers in the property improvement business, and they may be overstating their ability to predict the financial condition of markets going forward. Moreover, they may be downplaying concerns about commercial data points presented from Dodge Data, and they may be overstating their ability to sustainably stock enough product for their customers. Furthermore, they may have concerns about the reduced salaries for their associates, their inability to utilize federal net operating loss carryforwards, and the continued decrease in average daily sales. Finally, management may be concerned about the continued decline in the hospitality industry's reported revenue.
Underlying
HD Supply Holdings Inc.

HD Supply Holdings is a holding company. Through its subsidiaries, the company is an industrial distributor in North America. The company's segments include: Facilities Maintenance and Construction and Industrial. The company's Facilities Maintrnance segment distributes maintenance, repair and operations products, provides services and fabricates custom products. Products include electrical and lighting items, and plumbing, heating, ventilating, and air conditioning products. The company's Construction and Industrial segment distributes hardware, tools and materials to non-residential and residential contractors. Products include tilt-up brace systems, forming and shoring systems, concrete chemicals, and cutting tools.

Provider
Valens Research
Valens Research

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