SiteOne Landscape Supply Inc.

Overview Key strengths Key risks Nationwide footprint and leading market share compared with direct peers in the highly fragmented landscape products distribution industry. Narrow product range focused exclusively on landscaping supplies within the building materials industry. Robust EBITDA margins of over 10% compare favorably against other building materials distributors. Susceptible to discretionary spending levels, though the low price of its products offsets it somewhat. Adjusted leverage of 2x-3x and strong cash flow generation that provides capacity for debt-financed acquisitions at the current rating. Seasonal swings tied to housing construction and adverse weather patterns. We believe SiteOne Landscape Supply Inc. ?s organic revenues will decrease by a low-single-digit percent in 2023 as volume slows down. This, combined with lower price realizations,

...We expect relatively soft demand and pricing conditions in 2023 to somewhat compress earnings and margins. We believe SiteOne Landscape Supply Inc.'s organic revenues will decrease by a low-single-digit percent in 2023 as volume slows down. This, combined with lower price realizations, will pressure the overall top line. We expect demand conditions to deteriorate, particularly in the residential end markets. However, repair and remodel spending and some momentum in commercial construction markets could...

Full Report