WBT - Embedded Expectations Analysis - 2020 01 13
Welbilt, Inc. (WBT:USA) currently trades below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 17.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about the progress of their factory transformation project, replacement business demand, and manufacturing setbacks
Specifically, management may be concerned about the progress of the new fabrication equipment installation at their Wave 1 North American manufacturing plants, and they may be overstating their ability to apply learnings to move faster on their second wave of transformations. Moreover, they may be downplaying concerns about replacement business demand, manufacturing setbacks, and large customer project slowdowns. Finally, they may be exaggerating the success of their cost savings initiatives
Welbilt is a commercial foodservice equipment company. The company designs, manufactures and supplies food and beverage equipment for the commercial foodservice market. The company's products are used by commercial and institutional foodservice operators including restaurants, quick-service restaurant chains, hotels, resorts, cruise ships, caterers, supermarkets, convenience stores, hospitals, schools and other institutions. The company's portfolio of brands includes Cleveland?, Convotherm?, Crem?, Delfield?, Frymaster?, Garland?, Kolpak?, Lincoln?, Manitowoc? Ice, Merco?, Merrychef? and Multiplex?. The company's products brands are supported by FitKitchen?, KitchenCare?, and KitchenConnect?.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.