SITE Stock Fair Value – Kornitzer Capital Management Increases Stake in SiteOne Landscape Supply, Boosting Growth Potential
November 12, 2024
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SITEONE LANDSCAPE SUPPLY ($NYSE:SITE) is a leading provider of wholesale landscape supplies in the United States and Canada. The company offers a wide range of products including irrigation systems, fertilizers, outdoor lighting, and nursery stock to the professional landscaping market. Recently, the company has caught the attention of Kornitzer Capital Management Inc., an investment management firm based in Kansas. Kornitzer Capital Management Inc. has increased its stake in SiteOne, signaling its confidence in the company’s growth potential. The firm has been actively investing in companies with a strong track record of growth and profitability, and their increased stake in SiteOne is a testament to the company’s financial health and potential for future growth. The company has consistently reported strong financial results, with double-digit revenue growth and improving margins.
This has been driven by the company’s focus on expanding its product offerings, acquiring new branches, and investing in digital capabilities to enhance customer experience. With the additional financial backing from the firm, SiteOne will have the resources to continue its expansion plans and capture a larger share of the professional landscaping market. With a strong macroeconomic backdrop and increasing demand for landscaping services, SiteOne is well-positioned to benefit from these tailwinds and continue its impressive growth trajectory. It not only validates SiteOne’s strong financial performance and growth potential but also provides the company with the necessary resources to further expand its market share and deliver long-term value to its shareholders.
Share Price
This move is expected to boost the company’s growth potential and overall financial health. The stock for SITEONE opened at $151.98 and closed at $151.93, a decrease of 0.4% from its previous closing price of $152.54. While this may seem like a small decrease, it is worth noting that the overall market was also down on Friday. Therefore, the slight dip in SITEONE’s stock may not necessarily reflect any negative news or developments within the company itself. As a major player in the landscaping industry, SITEONE has a wide range of products and services that are in high demand. This, combined with their strong financial performance and continued growth, makes them an attractive investment opportunity.
With this increased stake from Kornitzer Capital Management Inc., SITEONE is poised to continue its upward trajectory and expand its market share even further. This is great news for both the company and its shareholders, as it demonstrates a strong belief in the company’s potential for success. It cements their position as a key player in the landscaping industry and sets them up for continued growth and success in the future. Investors can look forward to seeing how this increased investment will drive SITEONE’s performance and contribute to their long-term success. 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 |
| 4.3k | 173.4 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SITE. More…
| Operations | Investing | Financing |
| 297.5 | -226 | -18.3 |
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 |
| 2.83k | 1.34k | 32.96 |
Key Ratios Snapshot
Some of the financial key ratios for SITE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.7% | 11.7% | 5.8% |
| FCF Margin | ROE | ROA |
| 6.1% | 10.5% | 5.5% |
Analysis – SITE Stock Fair Value
After conducting a thorough analysis of SITEONE LANDSCAPE SUPPLY, I have found that the company has strong fundamentals that make it a solid investment choice. SITEONE LANDSCAPE SUPPLY is a leading distributor of landscape supplies, serving both residential and commercial customers. The company has a wide range of products and services, including irrigation systems, fertilizers, and outdoor lighting. In terms of financials, SITEONE LANDSCAPE SUPPLY has shown consistent revenue growth over the past few years. This growth can be attributed to the company’s strategic acquisitions and expansion into new markets. Furthermore, SITEONE LANDSCAPE SUPPLY has a strong balance sheet with low levels of debt and a healthy cash flow. This indicates that the company is financially stable and well-positioned to weather any economic downturns. Based on my valuation analysis, I believe that the fair value of SITEONE LANDSCAPE SUPPLY stock is around $181.5. This is calculated using our proprietary Valuation Line, which takes into account various factors such as earnings growth and industry trends. Currently, the stock is trading at $151.93, which presents a buying opportunity for investors as it is undervalued by 16.3%. This means that investors have the potential to see significant returns in the long run as the stock price continues to catch up with its fair value. In summary, SITEONE LANDSCAPE SUPPLY is a strong company with solid fundamentals and a promising future. With its competitive position in the market and strong financials, I believe that it is a worthwhile investment for those looking for long-term growth opportunities. More…
Peers
The company offers a wide range of products, including irrigation supplies, nursery stock, landscape tools and accessories, and more. SiteOne Landscape Supply Inc competes with Hydrofarm Holdings Group Inc, MAX Co Ltd, Thorpe (F W) PLC, and others in the landscape supplies industry.
– Hydrofarm Holdings Group Inc ($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
Kornitzer Capital Management Inc. KS has increased its stake in SiteOne Landscape Supply, Inc., indicating a positive outlook on the company’s performance. This suggests that they have conducted thorough investment analysis and believe that the company has strong potential for growth. Kornitzer is an experienced and reputable investment firm, which lends credibility to their investment decision.
This news could also potentially attract other investors to follow suit and invest in SiteOne. Overall, this development reflects positively on SiteOne’s financial health and future prospects, making it a potentially attractive investment opportunity for others as well.
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