JBI - Janus International: Timing And Size Of Acquisitions Impact Value Proposition

2024-05-23 03:54:32 ET

Summary

• Janus relied on acquisitions for double-digit growth in a mature sector with low organic growth.
• The company's recent acquisitions have led to improved operating and capital efficiencies, creating value.
• The market is pricing Janus based on future acquisitions, but the value can only be assessed when the timing and size of the acquisition are known.

Investment Thesis

Janus International Group ( JBI ) is in a mature sector with single-digit organic growth. To deliver double-digits growth, the company adopted an acquisition-led strategy. The company achieved improving operating and capital efficiencies with this growth model. This has led to value creation....

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