SITE Intrinsic Value – SITEONE LANDSCAPE SUPPLY Reports Second Quarter Earnings Results for FY2023
August 28, 2023
🌥️Earnings Overview
For the second quarter of FY2023, SITEONE LANDSCAPE SUPPLY ($NYSE:SITE) reported a total revenue of USD 1353.7 million, an increase of 11.3% from the same period in FY2022. However, their net income decreased by 11.9% year-on-year to USD 124.0 million.
Stock Price
On Wednesday, SITEONE LANDSCAPE SUPPLY reported their second quarter earnings results for FY2023. At the market opening, the stock for SITEONE LANDSCAPE SUPPLY opened at $171.1 and closed at $162.2, which was a 6.8% drop from the previous closing price of $174.0. This was a huge shift in the stock value in a single day for the company and it was seen as a quite a surprise among Wall Street analysts. Investors expected a positive growth in the stock price after the company had reported a successful first quarter.
However, according to the second quarter earnings report, the company had experienced a decrease in revenue and profits. This caused the investors to panic and start selling their shares, thus driving down the stock price. Overall, while SITEONE LANDSCAPE SUPPLY’s second quarter results were not as good as expected, the company still has a lot of potential to increase its stock price in the upcoming quarters. With new product launches and increasing customer base, the company could potentially rebound and start gaining in value once again. 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 Value
At GoodWhale, we have the tools to help you analyze the financials of SITEONE LANDSCAPE SUPPLY and make informed investment decisions. Our proprietary Valuation Line provides a fair value estimate for each stock and SITEONE LANDSCAPE SUPPLY is no exception. We estimate the fair value of SITEONE LANDSCAPE SUPPLY to be around $187.6. Currently, its stock is trading at $162.2 — a price that is undervalued by roughly 13.5%! More…
Peers
The company offers a wide range of products, including irrigation supplies, nursery stock, landscape tools and accessories, and more. SiteOne Landscape Supply Inc competes with Hydrofarm Holdings Group Inc, MAX Co Ltd, Thorpe (F W) PLC, and others in the landscape supplies industry.
– Hydrofarm Holdings Group Inc ($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 earnings results for the second quarter of FY2023, with total revenue of USD 1353.7 million, an increase of 11.3% from the previous year, and net income of USD 124.0 million, a decrease of 11.9% from the previous year. Despite the revenue growth, investors responded negatively to the news, with the stock price moving down on the same day. Therefore, it is important to carefully analyze the financial performance of the company before investing.
Investors should consider factors such as revenue growth, margins, and cash flow as well as the industry outlook when making decisions. Furthermore, it is wise to always be aware of any risks associated with the investment.
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