SITE - SiteOne Landscape To Remain On Shaky Grounds Before The Recovery

2024-03-22 08:43:57 ET

Summary

• SiteOne Landscape focuses on small customers and private label brands to manage costs and increase sales volume.
• The company's operating profit declined in Q4 due to commodity price deflation, which is expected to continue impacting performance in Q1 2024.
• Despite challenges, SiteOne's cash flows improved and its liquidity remained strong in FY2023, making it a reasonably valued stock with potential for medium-term returns.

SITE Has Multiple Factors To Consider

I previously discussed SiteOne Landscape ( SITE ) on September 4, 2023, and you can read the latest article here . SiteOne, with its focus on small customers and private label brands, will manage costs proactively through lower inbound freight costs. The company's customer backlogs in commercial construction led to a steady sales volume in the maintenance category. As the organic growth lacked a punch, management took the inorganic route. It acquired several small acquisitions, aggregating significant revenue additions to its top line....

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