TREX - Janus International Group: Good Long-Term Prospects And A Reasonable Valuation (Rating Upgrade)

2024-05-24 15:42:31 ET

Summary

• Janus International Group has good growth prospects due to high demand for new construction projects in the storage industry and long-term trends in e-commerce.
• Growth in R3 business should also benefit from easing comps in the coming quarters.
• Janus International is trading at a discount to its historical averages and peer valuations, making it an attractive investment opportunity.

Investment Thesis

Janus International Group, Inc. ( JBI ) has good growth prospects ahead. The company's revenue should benefit from healthy demand for new construction projects due to the high occupancy rates of storage REITs. In addition, easing year-over-year comparisons within the self-storage R3 (restoration, rebuilding, and replacement) business in the coming quarters, new product launches, and long-term demand trends from an increase in warehouses and distribution centers from e-commerce companies within the commercial markets should also support sales growth. Lastly, inorganic growth through M&As should further boost the top line....

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