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SiteOne Landscape Supply (SITE)
NYSE:SITE
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SiteOne Landscape Supply (SITE) AI Stock Analysis

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SITE

SiteOne Landscape Supply

(NYSE:SITE)

Rating:77Outperform
Price Target:
$157.00
▲(6.52% Upside)
SiteOne Landscape Supply demonstrates strong financial performance with effective cost management and solid cash flow, which are the most significant contributors to the score. Technical indicators support a stable outlook, while valuation concerns due to a high P/E ratio and lack of dividend yield slightly dampen the attractiveness. The earnings call highlights resilience and strategic growth, despite market challenges.
Positive Factors
Earnings
Shares are up 10% after solid second-quarter results and, more importantly, a reiterated full-year EBITDA guide.
Margins
Resilient volumes and higher EBITDA margins were achieved due to gross margin initiatives and SG&A controls.
Negative Factors
Demand
End-market demand is expected to be down slightly overall.
Valuation
Bears will push back on valuation at 17 times NTM EBITDA, weak organic growth, and a slower year for M&A activity.

SiteOne Landscape Supply (SITE) vs. SPDR S&P 500 ETF (SPY)

SiteOne Landscape Supply Business Overview & Revenue Model

Company DescriptionSiteOne 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 MoneySiteOne generates revenue primarily through the sale of landscape supplies to professional contractors. Its revenue model is based on wholesale distribution, where it purchases products from manufacturers and sells them at a markup to its customers. Key revenue streams include sales of hardscape materials, irrigation products, and nursery items. Additionally, the company benefits from seasonal demand fluctuations, particularly in spring and summer. SiteOne also engages in strategic partnerships with manufacturers to secure exclusive distribution rights and favorable pricing, enhancing its competitive edge and contributing to its overall earnings.

SiteOne Landscape Supply Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a resilient performance by SiteOne amidst challenging market conditions. The company has achieved solid financial results and continued market share gains, supported by effective digital and operational initiatives. However, the softness in end markets, pricing challenges, and reduced acquisition revenue present notable challenges.
Q2-2025 Updates
Positive Updates
Solid Financial Performance
Achieved 3% net sales growth and 8% growth in adjusted EBITDA despite challenging market conditions. Adjusted EBITDA margin improved by 60 basis points to 15.5%.
Market Share Gains
Continued to gain market share with initiatives yielding 7% organic daily sales growth in agronomic products.
Successful Acquisitions
Added 2 excellent companies in July, expanding full product line capability in local markets. Completed 100th acquisition in March, with over $2 billion in acquired revenue since 2014.
Digital and Operational Initiatives
Digital sales grew by over 130% in the first half of 2025. Improved delivery efficiency reduced net delivery expense by over 40 basis points on delivered sales.
Negative Updates
Softness in End Markets
Broader economic uncertainty and softness in end markets, especially in new residential construction and repair and upgrade sectors.
Pricing Challenges
Flat organic sales volume and pricing due to market conditions. Grass seed prices expected to decline 10% to 20% for the year.
Reduced Acquisition Revenue
2025 expected to be a lighter year in terms of acquired revenue due to smaller average acquisition sizes.
Challenges in High-Growth Markets
Significant headwinds in high-growth markets such as Texas, Florida, Arizona, and California due to softer new construction end markets.
Company Guidance
During the SiteOne Landscape Supply Second Quarter 2025 Earnings Call, the company reported a 3% growth in net sales and an 8% increase in adjusted EBITDA, despite economic uncertainty and softness in end markets. The company achieved a gross margin of 36.4%, reflecting a 30 basis point improvement, and SG&A as a percentage of net sales decreased by 40 basis points to 23.9%. Adjusted EBITDA rose to $226.7 million with a margin improvement of 60 basis points to 15.5%. The guidance for the fiscal year 2025 adjusted EBITDA was reaffirmed at $400 million to $430 million, expecting low single-digit organic daily sales growth in the second half. Additionally, SiteOne executed 4 acquisitions year-to-date with a combined trailing twelve-month net sales of approximately $30 million, contributing to their strategy of market expansion and share gain.

SiteOne Landscape Supply Financial Statement Overview

Summary
SiteOne Landscape Supply exhibits solid financial health with strong revenue growth and effective cost management reflected in a healthy gross profit margin. The balance sheet indicates a prudent reduction in leverage, enhancing financial stability. Cash flows are well-managed, supporting operational and strategic initiatives. However, improvements in net profitability and further enhancement of operating efficiency could bolster overall financial performance.
Income Statement
85
Very Positive
SiteOne Landscape Supply shows strong revenue growth with a steady increase from $2.7 billion in 2021 to $4.6 billion in TTM 2025. The gross profit margin is consistently robust, with the latest TTM figure at approximately 35.8%, indicating effective cost management. However, the net profit margin is relatively lower at around 2.7% in TTM, showing room for improvement in net profitability. The EBITDA margin has decreased to 5.9% in TTM, highlighting some pressure on operating efficiencies.
Balance Sheet
78
Positive
The company's balance sheet reflects a strong equity base with an equity ratio of 48.9% as of TTM 2025, indicating a solid asset base funded by equity. The debt-to-equity ratio significantly improved to 0.06 in TTM, showcasing reduced leverage and financial risk. Return on equity (ROE) for TTM is moderate at 7.6%, suggesting efficient use of equity, but there's potential for higher returns. Overall, the balance sheet is stable with a positive trajectory in reducing debt.
Cash Flow
82
Very Positive
Operating cash flow remains strong at $242.4 million in TTM, maintaining a healthy operating cash flow to net income ratio of 1.95, indicating strong cash earnings. The free cash flow growth rate shows some volatility, reflecting capital expenditure needs, yet remains positive at $192.6 million. The free cash flow to net income ratio is 1.55, demonstrating efficient cash generation relative to earnings. Overall, cash flow management is robust with potential for increased free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.62B4.54B4.30B4.01B3.48B2.70B
Gross Profit1.59B1.56B1.49B1.42B1.21B901.30M
EBITDA345.10M339.40M378.00M436.90M396.70M247.00M
Net Income124.40M123.60M173.40M245.40M238.40M121.30M
Balance Sheet
Total Assets3.33B3.07B2.83B2.53B2.12B1.70B
Cash, Cash Equivalents and Short-Term Investments78.60M107.10M82.50M29.10M53.70M55.20M
Total Debt93.70M951.30M861.40M739.50M606.90M568.00M
Total Liabilities1.68B1.48B1.34B1.23B1.06B900.70M
Stockholders Equity1.63B1.57B1.49B1.30B1.06B795.00M
Cash Flow
Free Cash Flow192.60M238.60M261.50M175.50M173.80M203.60M
Operating Cash Flow242.40M283.40M297.50M217.20M210.80M229.40M
Investing Cash Flow-95.20M-177.10M-226.00M-284.40M-182.00M-184.20M
Financing Cash Flow-141.00M-80.90M-18.30M43.40M-30.40M-9.10M

SiteOne Landscape Supply Technical Analysis

Technical Analysis Sentiment
Positive
Last Price147.39
Price Trends
50DMA
133.88
Positive
100DMA
126.29
Positive
200DMA
130.34
Positive
Market Momentum
MACD
3.19
Positive
RSI
61.39
Neutral
STOCH
67.68
Neutral
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 147.39 is above the 20-day moving average (MA) of 141.12, above the 50-day MA of 133.88, and above the 200-day MA of 130.34, indicating a bullish trend. The MACD of 3.19 indicates Positive momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SITE.

SiteOne Landscape Supply Risk Analysis

SiteOne Landscape Supply disclosed 37 risk factors in its most recent earnings report. SiteOne Landscape Supply reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SiteOne Landscape Supply Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$9.93B25.9922.24%0.65%1.88%2.91%
77
Outperform
$6.33B51.967.76%4.38%-18.94%
76
Outperform
$12.75B29.9325.11%10.80%0.98%
75
Outperform
$4.97B25.1714.34%3.77%-4.11%-31.26%
69
Neutral
$16.40B30.1218.38%2.83%0.98%0.80%
68
Neutral
$11.38B28.1530.02%1.55%-1.71%-8.90%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SITE
SiteOne Landscape Supply
147.39
12.68
9.41%
AIT
Applied Industrial Technologies
267.96
73.82
38.02%
MSM
MSC Industrial
92.66
18.30
24.61%
POOL
Pool
315.80
-21.18
-6.29%
WSO
Watsco
403.39
-35.85
-8.16%
CNM
Core & Main
65.85
27.85
73.29%

SiteOne Landscape Supply Corporate Events

Executive/Board ChangesShareholder Meetings
SiteOne Landscape Supply Updates Board Structure and By-Laws
Neutral
May 19, 2025

On May 14, 2025, SiteOne Landscape Supply held its Annual Meeting of Stockholders, where stockholders approved an amendment to declassify the board of directors. The company filed the amendment on May 16, 2025, and also updated its by-laws to reflect these changes, including procedural updates for stockholder meetings and director nominations. Additionally, stockholders elected three directors, approved Deloitte & Touche LLP as the accounting firm for 2025, and supported executive compensation plans.

The most recent analyst rating on (SITE) stock is a Sell with a $129.00 price target. To see the full list of analyst forecasts on SiteOne Landscape Supply stock, see the SITE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025