SiteOne Landscape Supply (SITE) AI Stock Analysis

• Market Cap: $5.04B
• Dividend Yield: N/A
• Average Volume (3M): 574.89K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 1.26
• Revenue Growth: 5.57%
• EPS Growth: -28.96%
• Country: US
• Employees: 7,840
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Distribution
• EPS (TTM): 2.70
• Shares Outstanding: 44,966,885
• 10 Day Avg. Volume: 706,979
• 30 Day Avg. Volume: 574,893
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.21
• Price to Cash Flow (P/CF): 11.50
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $144.88
• Price Target Upside: 31.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

SiteOne Landscape Supply's overall score reflects solid fundamentals with strong revenue growth and a robust balance sheet. However, profitability challenges, a high P/E ratio, and bearish technical indicators weigh down the score. The earnings call provided a balanced view of growth potential and current challenges, resulting in a moderate outlook.

Positive Factors

Company-Specific Initiatives

Company-Specific Initiatives are expected to drive above-market growth, including expansion in white-spaces and leveraging commercial initiatives.

Market Share Growth

Since its IPO in 2016, SiteOne has significantly increased its share in the North American wholesale landscaping distribution industry.

Negative Factors

Mixed End-Market Dynamics

Mixed end-market dynamics are expected to offset the company's initiatives over the next 12 months.

Weaker Construction Activity

Weaker R&R and Non-Residential Construction Activity is expected to contribute to flat demand next year.

SiteOne Landscape Supply Business Overview & Revenue Model

Company Description

SiteOne Landscape Supply, Inc. engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides a selection of approximately 135,000 stock keeping units, including irrigation supplies, which comprise controllers, valves, sprinkler heads, and irrigation pipes; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation network design, commercial project planning, generation of sales leads, business operations, product support services, and a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specialize in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. As of January 2, 2022, the company had approximately 590 branches in 45 U.S. States and six Canadian provinces. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.

How the Company Makes Money

SiteOne Landscape Supply generates revenue primarily through the sale of landscape supplies to professional landscapers and contractors. The company's revenue model is based on wholesale distribution, where it purchases products from manufacturers and resells them to its customers at a markup. Key revenue streams include the sale of irrigation and drainage products, nursery goods, pesticides and fertilizers, as well as outdoor lighting and hardscape materials. SiteOne also benefits from strong supplier relationships, allowing it to offer a wide range of products and competitive pricing. Additionally, the company leverages economies of scale to optimize its distribution network and enhance profitability.

SiteOne Landscape Supply Financial Statement Overview

Summary

SiteOne Landscape Supply shows strong revenue growth and an improved balance sheet with a reduced debt-to-equity ratio. However, profitability challenges and inconsistent cash flows, particularly the recent decline in free cash flow, are concerns impacting its overall financial performance.

Income Statement

SiteOne Landscape Supply has shown a strong revenue growth trajectory over the years, with revenue increasing from $2.35 billion in 2019 to $4.4 billion in 2024. However, the gross profit margin has been inconsistent, with the most recent annual report showing no net income, partly due to a negative EBIT. The company has experienced fluctuations in profitability, as reflected in the varying EBIT and EBITDA margins over the years.

Balance Sheet

The balance sheet reflects a strong equity position, with stockholders' equity growing from $393 million in 2019 to $1.57 billion in 2024. The debt-to-equity ratio has improved significantly, indicating reduced leverage risk. The company's equity ratio has also improved, showing a strong capital structure. However, the high total liabilities could pose a potential risk if not managed properly.

Cash Flow

SiteOne Landscape Supply's cash flow from operations has been positive, although there was a notable drop in free cash flow in the most recent period. The company has generally maintained a positive free cash flow, which is crucial for sustainability and growth. However, the absence of significant cash flow data in the latest report poses challenges in assessing the current liquidity position.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.40M	4.30B	4.01B	3.48B	2.70B
	Gross Profit
4.40M	1.49B	1.42B	1.21B	901.30M
	EBIT
-7.90M	250.30M	333.10M	313.70M	179.80M
	EBITDA
331.30M	378.00M	436.90M	396.70M	247.00M
	Net Income Common Stockholders
123.60M	173.40M	245.40M	238.40M	121.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.10M	82.50M	29.10M	53.70M	55.20M
	Total Assets
3.07B	2.83B	2.53B	2.12B	1.70B
	Total Debt
94.50M	861.40M	739.50M	606.90M	568.00M
	Net Debt
-12.60M	778.90M	710.40M	553.20M	512.80M
	Total Liabilities
1.48B	1.34B	1.23B	1.06B	900.70M
	Stockholders Equity
1.57B	1.49B	1.30B	1.06B	795.00M
Cash Flow		Free Cash Flow
238.60M	261.50M	175.50M	173.80M	203.60M
	Operating Cash Flow
283.40M	297.50M	217.20M	210.80M	229.40M
	Investing Cash Flow
-177.10M	-226.00M	-284.40M	-182.00M	-184.20M
	Financing Cash Flow
-80.90M	-18.30M	43.40M	-30.40M	-9.10M

SiteOne Landscape Supply Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITE, the sentiment is Negative. The current price of 109.92 is below the 20-day moving average (MA) of 116.75, below the 50-day MA of 124.41, and below the 200-day MA of 136.57, indicating a bearish trend. The MACD of -4.00 indicates Negative momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 56.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SITE.

SiteOne Landscape Supply Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSO	78 Outperform	$20.81B	38.71	20.39%	2.13%	4.59%	-2.05%
CNM	75 Outperform	$9.76B	23.26	26.10%	―	11.03%	-0.85%
MSM	72 Outperform	$4.31B	20.35	15.53%	4.35%	-5.71%	-31.93%
AIT	67 Neutral	$8.51B	22.45	22.70%	0.71%	0.37%	3.52%
POOL	66 Neutral	$11.74B	27.54	33.41%	1.57%	-4.16%	-15.44%
SITE	64 Neutral	$5.04B	41.53	8.08%	―	5.57%	-28.96%
Sector *	62 Neutral	$4.17B	11.26	5.46%	215.76%	4.12%	-8.54%

SiteOne Landscape Supply Corporate Events

SiteOne Landscape Supply EVP Brisendine Resigns

On March 24, 2025, Briley Brisendine, Executive Vice President, General Counsel, and Secretary of SiteOne Landscape Supply, announced his resignation. He will step down from his current role on April 13, 2025, but will continue to provide transition services until October 31, 2025, under a Letter Agreement. During this period, he will receive a monthly salary of $2,500 without additional compensation, and the agreement includes a general release of claims, confidentiality, and non-disparagement provisions.

SiteOne Awards Performance Stock Units to Executives

On February 5, 2025, SiteOne Landscape Supply’s Human Resources and Compensation Committee awarded performance stock units to several officers under its 2020 Omnibus Equity Incentive Plan. These units are contingent on the company’s performance over three years, measured by EBITA growth and return on invested capital. This initiative aims to align executive compensation with company performance, potentially impacting operational efficiency and stakeholder value.