SITE - Embedded Expectations Analysis - 2019 04 09
SiteOne Landscape Supply, Inc. (SITE:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.1x Uniform P/E, implying bearish expectations for the firm. Furthermore, management may be concerned about slowing residential segment growth, macro and weather-related headwinds, and their recent acquisitions.Specifically, management may be exaggerating their unique market position and maintenance segment tailwinds, and may be downplaying concerns about their 2018 results, slowing residential segment growth, and tariffs. Moreover, they may be concerned about their barcoding initiative progress, revenue mix, and hurricane-related nursery damage in the Southeast. Finally, they may lack confidence in their ability to sustain gross margin and cash flow growth, and may be concerned about sales seasonality, taxes, and their C&C and All Around Landscape acquisitions.
SiteOne Landscape Supply is a holding company. Through its subsidiaries, the company is a national wholesale distributor of landscape supplies in the U.S. and Canada. The company's customers are primarily residential and commercial landscape personnel who focuses on the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. Through its North American network, the company provides irrigation supplies, fertilizer and control products, landscape accessories, nursery goods, hardscapes, outdoor lighting and ice melt products. The company also provides consultative services, as well as a series of technical and business management seminars that it calls SiteOne University.
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