SiteOne Landscape Supply (SITE) AI Stock Analysis

• Market Cap: $6.57B
• Dividend Yield: N/A
• Average Volume (3M): 589.55K
• Price to Earnings (P/E): 47.8
• Beta (1Y): 1.16
• Revenue Growth: 4.00%
• EPS Growth: -0.75%
• Country: US
• Employees: 7,840
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.46
• Shares Outstanding: 44,536,510
• 10 Day Avg. Volume: 557,666
• 30 Day Avg. Volume: 589,555
• PEG Ratio: -1.66
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 24.90
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 18.57
• 1Y Price Target: $141.50
• Price Target Upside: -4.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $166.00 ▲(12.52% Upside)

SiteOne Landscape Supply's overall score reflects its strong financial performance and positive earnings call outlook, tempered by valuation concerns and technical indicators suggesting a neutral trend. The company's strategic focus on growth and acquisitions supports its potential for future success, despite current market challenges.

Positive Factors

Market Share Gains

Increasing market share indicates a strong competitive position and ability to capture demand, supporting long-term growth prospects.

Acquisitions and Expansion

Strategic acquisitions enhance product offerings and market reach, positioning SiteOne for sustained growth and competitive advantage.

Digital Sales Growth

Robust digital sales growth reflects strong adaptation to e-commerce trends, improving customer engagement and operational efficiency.

Negative Factors

End Market Softness

Weak demand in key markets like residential construction can limit revenue growth, affecting overall business performance in the medium term.

Branch Closures

Branch closures may reduce operational footprint and impact local market presence, potentially affecting customer service and sales.

Profit Margin Pressure

Declining profit margins suggest rising costs or pricing pressures, which could challenge profitability and financial health over time.

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 products and supplies to professional contractors and other businesses in the landscaping industry. The company has multiple key revenue streams including sales of live goods (such as plants and trees), hardscapes (like pavers and retaining walls), irrigation systems, and maintenance supplies. Additionally, SiteOne benefits from strategic partnerships with suppliers and manufacturers that enhance its product offerings and improve procurement efficiency. The company's extensive distribution network allows for timely delivery, which is crucial for contractors working on tight schedules, further solidifying customer loyalty and repeat business.

SiteOne Landscape Supply Financial Statement Overview

Summary

SiteOne Landscape Supply demonstrates a strong financial position with consistent revenue growth and effective debt management. However, profitability margins have faced some pressure recently, which could impact future performance.

Income Statement

SiteOne Landscape Supply shows a solid performance in its income statement with a consistent revenue growth trajectory, evidenced by a TTM revenue growth rate of 1.37% and a previous annual growth rate of 5.57%. The gross profit margin remains stable around 34.5%, indicating effective cost management. However, the net profit margin has slightly decreased in the TTM period to 2.98% from 4.03% in 2023, suggesting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline in the TTM period, which could indicate increased operational costs or pricing pressures.

Balance Sheet

The balance sheet reflects strong financial stability with a significant reduction in the debt-to-equity ratio to 0.055 in the TTM period from 0.605 in 2024, highlighting effective debt management. The return on equity (ROE) has improved to 8.62% in the TTM period, indicating efficient use of equity to generate profits. The equity ratio remains robust, suggesting a strong capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis shows a positive trend with a 15.43% growth in free cash flow in the TTM period, recovering from a decline in the previous year. The operating cash flow to net income ratio is at 0.36, which is lower than previous years, indicating potential challenges in converting net income to cash. The free cash flow to net income ratio remains strong at 0.81, reflecting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.67B	4.54B	4.30B	4.01B	3.48B	2.70B
Gross Profit	1.62B	1.56B	1.49B	1.42B	1.21B	901.30M
EBITDA	359.90M	331.30M	378.00M	436.90M	396.70M	247.00M
Net Income	139.10M	123.60M	173.40M	245.40M	238.40M	121.30M
Balance Sheet
Total Assets	3.27B	3.07B	2.83B	2.53B	2.12B	1.70B
Cash, Cash Equivalents and Short-Term Investments	106.90M	107.10M	82.50M	29.10M	53.70M	55.20M
Total Debt	955.60M	951.30M	861.40M	739.50M	606.90M	568.00M
Total Liabilities	1.54B	1.48B	1.34B	1.23B	1.06B	900.70M
Stockholders Equity	1.70B	1.57B	1.49B	1.30B	1.06B	795.00M
Cash Flow
Free Cash Flow	205.50M	238.60M	261.50M	175.50M	173.80M	203.60M
Operating Cash Flow	255.10M	283.40M	297.50M	217.20M	210.80M	229.40M
Investing Cash Flow	-90.20M	-177.10M	-226.00M	-284.40M	-182.00M	-184.20M
Financing Cash Flow	-143.60M	-80.90M	-18.30M	43.40M	-30.40M	-9.10M

SiteOne Landscape Supply Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 147.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITE, the sentiment is Positive. The current price of 147.53 is above the 20-day moving average (MA) of 133.54, above the 50-day MA of 130.64, and above the 200-day MA of 127.60, indicating a bullish trend. The MACD of 5.12 indicates Negative momentum. The RSI at 71.37 is Negative, neither overbought nor oversold. The STOCH value of 90.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SITE.

SiteOne Landscape Supply Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	75 Outperform	$13.70B	22.09	13.06%	0.72%	5.28%	1.97%
AIT	74 Outperform	$10.61B	27.05	22.10%	0.70%	4.03%	5.93%
FAST	72 Outperform	$50.22B	41.01	32.74%	2.10%	6.92%	5.98%
SITE	71 Outperform	$6.57B	47.78	8.37%	―	4.00%	-0.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MSM	62 Neutral	$4.73B	23.16	14.84%	3.96%	-1.35%	-22.24%
DSGR	61 Neutral	$1.39B	-125.25	-1.68%	―	14.46%	-588.82%