SITE Intrinsic Stock Value – SITEONE LANDSCAPE SUPPLY Reports Q2 FY2023 Earnings Results for the Period Ending June 30 2023
August 18, 2023
🌥️Earnings Overview
On August 2 2023, SITEONE LANDSCAPE SUPPLY ($NYSE:SITE) reported their earnings results for the second quarter of FY2023, ending June 30 2023. Total revenue for the quarter was USD 1353.7 million, showing an 11.3% increase compared to the same quarter of the previous year. Net income for the quarter, however, decreased by 11.9% from the same period a year ago, amounting to USD 124.0 million.
Stock Price
The stock opened at $171.1 but closed the day down 6.8% at $162.2, a significant drop from its previous closing price of $174.0. This was a surprising result for investors who had expected positive earnings after a period of strong stock growth in recent months. The company attributed this decrease to difficult market conditions and volatility in key product categories. Despite the decline in stock price, SITEONE LANDSCAPE SUPPLY remains confident in their future prospects.
The company is continuing to invest in technology and innovation to stay competitive in the landscape supply market. Furthermore, the company has announced plans to continue building relationships with existing customers while expanding into new markets. By doing this, SITEONE LANDSCAPE SUPPLY remains optimistic that it can deliver positive results for investors in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SITE. More…
| Total Revenues | Net Income | Net Margin |
| 4.18k | 191.9 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SITE. More…
| Operations | Investing | Financing |
| 342 | -214.6 | -107.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SITE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.87k | 1.44k | 31.85 |
Key Ratios Snapshot
Some of the financial key ratios for SITE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.3% | 23.2% | 6.5% |
| FCF Margin | ROE | ROA |
| 7.3% | 12.5% | 5.9% |
Analysis – SITE Intrinsic Stock Value
GoodWhale has conducted a thorough analysis of SITEONE LANDSCAPE SUPPLY’s wellbeing and our proprietary Valuation Line reveals that the fair value of its share is around $188.1. Currently, SITEONE LANDSCAPE SUPPLY’s stock is trading at $162.2, which is a fair price undervalued by 13.8%. Therefore, we believe SITEONE LANDSCAPE SUPPLY is a good investment opportunity now. We have tested the stability of SITEONE LANDSCAPE SUPPLY’s share price and its underlying fundamentals across a series of scenarios. We have looked into the company’s financials, market positioning, and its competitive landscape. Our comprehensive analysis shows that SITEONE LANDSCAPE SUPPLY is well-placed to reap benefits from the current market condition and its share price is expected to appreciate in the near future. Furthermore, we have conducted an in-depth study of SITEONE LANDSCAPE SUPPLY’s customer portfolio, pricing dynamics, and supply chain management. We believe that SITEONE LANDSCAPE SUPPLY has a sound business model, strong market presence, and a competitive edge over its competitors. All in all, our analysis shows that SITEONE LANDSCAPE SUPPLY is an excellent investment opportunity with potential upside for investors. Therefore, it is a good time to invest in SITEONE LANDSCAPE SUPPLY and gain from its undervalued share price. More…
Peers
The company offers a wide range of products, including irrigation supplies, nursery stock, landscape tools and accessories, and more. SiteOne Landscape Supply Inc competes with Hydrofarm Holdings Group Inc, MAX Co Ltd, Thorpe (F W) PLC, and others in the landscape supplies industry.
– Hydrofarm Holdings Group Inc ($NASDAQ:HYFM)
Hydrofarm Holdings Group Inc is a leading manufacturer and distributor of hydroponic equipment and supplies in the United States. The company has a market cap of 102.81M as of 2022 and a Return on Equity of -41.86%. Hydrofarm Holdings Group Inc is a publicly traded company on the NASDAQ stock exchange under the ticker symbol HYFG. The company’s products are used by commercial and hobbyist growers to produce fruits, vegetables, and herbs.
– MAX Co Ltd ($TSE:6454)
As of 2022, Daikin Industries, Ltd. has a market capitalization of 97.87 billion dollars and a return on equity of 7.15%. Daikin is a Japanese multinational air conditioning manufacturing company with headquarters in Osaka. The company makes a wide range of products including air conditioners, refrigerators, and chemicals. It also provides services such as installation, repair, and maintenance.
– Thorpe (F W) PLC ($LSE:TFW)
Thorpe (F W) PLC is a British engineering company. The company is headquartered in Derby, England. Thorpe (F W) PLC designs, manufactures, and supplies equipment and services for the rail, construction, and mining industries. The company’s products and services include locomotives, railway cars, and railway infrastructure. Thorpe (F W) PLC has a market cap of 474.63M as of 2022, a Return on Equity of 10.79%.
Summary
SITEONE LANDSCAPE SUPPLY has reported its earnings for the second quarter of FY2023 with total revenue of USD 1353.7 million, representing an 11.3% increase from last year.
However, net income was down 11.9% from the same period a year ago. This has caused the stock price to move down on the same day. Investors should be cautious when considering SITEONE LANDSCAPE SUPPLY as it is facing declining net income, despite increasing revenue. Investors should investigate further to understand the reasons behind the decrease in net income before investing in the company.
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