WBT - Embedded Expectations Analysis - 2021 04 27
Welbilt, Inc. (WBT:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 26.1x Uniform P/E. At these levels, the market is pricing in expectations for profitability to stabilize, but management may be concerned about cost savings guidance, the pace of recovery of the APAC market, and capex spendingSpecifically, management may lack confidence in their ability to meet their 2021 savings targets, execute their capital spending plans, and sustain price increases in their spare parts business. Additionally, they may have concerns about the pace of recovery of the APAC region, inventory levels of distributors, and declines in pre-buy activity among distributors. Moreover, management may lack confidence in their ability to expand margins and they may be exaggerating the probable number of ghost kitchen openings over the next four years. Finally, they may be concerned about further restaurant closures, rising labor costs as productivity rebounds, and the pace of the recovery of equipment sales
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?.
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