HLMN - Hillman Solutions: Ready For Tuck-In Acquisitions

2024-05-08 12:23:22 ET

Summary

• A much-improved balance sheet has created the opportunity for the company to pursue tuck-in acquisitions that fit Hillman's wide-moat strategy.
• Synergistic acquisitions supplement organic growth initiatives until existing home sales recover.
• Hillman Solutions reported 1Q'24 results with expected flat sales and improving margins and cash flows.
• HLMN stock is currently undervalued despite solid execution.

Thesis

Hillman Solutions Corp. ( HLMN ) reported 1Q 2024 results in line with expectations, with flat revenues and better margins and cash flow. The top line was flat despite the economy's overall strength because the company is leveraged to existing home sales, which are currently depressed by higher mortgage rates and lower inventories....

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