SITE Intrinsic Value Calculator – SITEONE LANDSCAPE SUPPLY Reports FY2022 Q4 Earnings Results for Period Ending February 15 2023
March 11, 2023
Earnings Overview
SITEONE LANDSCAPE SUPPLY ($NYSE:SITE) announced their FY2022 fourth quarter financial results on December 31 2022, with the period ending on February 15 2023. Total revenue in the quarter was USD -0.9 million, decreasing 103.3% year-over-year. Net income for the same period increased 10.5%, reaching USD 890.0 million.
Transcripts Simplified
Siteone Landscape Supply reported an 11% increase in net sales for the fourth quarter of 2022, with a total of $890 million. Organic daily sales increased by 7% in the fourth quarter and 11% for the full year. Price inflation contributed approximately 12% to organic daily sales growth for the quarter, and 18% for the full year. Volume declined 5% for the fourth quarter of 2022 and 7% for the full year.
Organic daily sales for landscaping products increased 8% for the fourth quarter and 12% for the full year. Organic daily sales growth for agronomic products increased 5% for the quarter and 7% for the full year. Price inflation is projected to be low single-digit during 2023, with most of it expected in the first half of the year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SITE. More…
| Total Revenues | Net Income | Net Margin |
| 4.01k | 245.4 | 6.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SITE. More…
| Operations | Investing | Financing |
| 217.2 | -284.4 | 43.4 |
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 |
| 2.53k | 1.23k | 29.01 |
Key Ratios Snapshot
Some of the financial key ratios for SITE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.4% | 38.7% | 8.3% |
| FCF Margin | ROE | ROA |
| 4.4% | 15.9% | 8.2% |
Share Price
The large landscaping supply distributor saw their stock open at $150.2 and close at $159.1, representing a 1.8% increase from the previous closing price of $156.3. This is a strong indication that investors remain confident in the company’s position in the market despite their relatively low year-over-year growth rate of 1%. This growth was largely driven by strong sales in their professional business sector and an uptick in demand for landscaping services as more and more people look to enhance their outdoor living spaces in the wake of restrictions and stay-at-home orders. SITEONE LANDSCAPE SUPPLY managed to increase their bottom line through cost-cutting measures, improved inventory management and by taking advantage of low prices offered by suppliers.
The company’s stock responded positively despite the overall slow growth rate, indicating that investors remain confident in their future prospects. With continued cost-cutting measures and aggressive inventory management strategies, SITEONE LANDSCAPE SUPPLY is well-positioned to capitalise on the increasing demand for their services. Live Quote…
Analysis – SITE Intrinsic Value Calculator
At GoodWhale, we believe investors should always consider a company’s fundamentals when making a decision to invest. That’s why, when it comes to SITEONE LANDSCAPE SUPPLY, we provide investors with an in-depth analysis of the company’s financials. Our proprietary Valuation Line shows that the fair value of SITEONE LANDSCAPE SUPPLY share is around $180.9. In other words, at the moment the stock is trading at a fair price that is undervalued by 12.0%. This presents an attractive opportunity for investors looking to add SITEONE LANDSCAPE SUPPLY to their portfolio and benefit from potential upside as the stock price moves closer to its fair value. More…
Peers
The company offers a wide range of products, including irrigation supplies, nursery stock, landscape tools and accessories, and more. SiteOne Landscape Supply Inc competes with Hydrofarm Holdings Group Inc, MAX Co Ltd, Thorpe (F W) PLC, and others in the landscape supplies industry.
– Hydrofarm Holdings Group Inc ($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 reported their FY2022 Q4 earnings for the period ending February 15 2023. Revenue for the quarter decreased drastically by 103.3% compared to the same period last year, yet net income showed an increase of 10.5%. Investors should take close note of these figures, as well as the company’s performance over the past year, when considering investing in SITEONE LANDSCAPE SUPPLY. Additionally, considering the risk associated with investing in a company with such a large decrease in revenue, investors should be wary and assess the potential financial impact of any future investments.
