NYSE:SITE

Stock Analysis Report

Executive Summary

SiteOne Landscape Supply, Inc. engages in the wholesale distribution of landscape supplies in the United States and Canada.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

How has SiteOne Landscape Supply's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SITE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

SITE

0.7%

US Trade Distributors

1.7%

US Market


1 Year Return

66.1%

SITE

17.9%

US Trade Distributors

23.6%

US Market

Return vs Industry: SITE exceeded the US Trade Distributors industry which returned 22.3% over the past year.

Return vs Market: SITE exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

SITEIndustryMarket
7 Day2.8%0.7%1.7%
30 Day4.4%-0.6%3.5%
90 Day18.4%8.2%11.7%
1 Year66.1%66.1%19.8%17.9%26.2%23.6%
3 Year155.2%155.2%29.3%23.7%53.2%43.3%
5 Yearn/a50.1%39.0%75.5%56.1%

Price Volatility Vs. Market

How volatile is SiteOne Landscape Supply's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SiteOne Landscape Supply undervalued compared to its fair value and its price relative to the market?

53.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SITE ($92.59) is trading above our estimate of fair value ($62.09)

Significantly Below Fair Value: SITE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SITE is poor value based on its PE Ratio (52x) compared to the Trade Distributors industry average (17x).

PE vs Market: SITE is poor value based on its PE Ratio (52x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SITE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SITE is overvalued based on its PB Ratio (10x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is SiteOne Landscape Supply forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SITE's forecast earnings growth (25.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SITE's earnings (25.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SITE's revenue (5.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: SITE's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SITE's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has SiteOne Landscape Supply performed over the past 5 years?

51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SITE has high quality earnings.

Growing Profit Margin: SITE's current net profit margins (3.2%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: SITE has become profitable over the past 5 years, growing earnings by 51.1% per year.

Accelerating Growth: SITE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SITE had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Trade Distributors industry average (-7.3%).


Return on Equity

High ROE: SITE's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SiteOne Landscape Supply's financial position?


Financial Position Analysis

Short Term Liabilities: SITE's short term assets ($875.2M) exceed its short term liabilities ($359.0M).

Long Term Liabilities: SITE's short term assets ($875.2M) exceed its long term liabilities ($783.5M).


Debt to Equity History and Analysis

Debt Level: SITE's debt to equity ratio (151.7%) is considered high.

Reducing Debt: SITE's debt to equity ratio has increased from 49.1% to 151.7% over the past 5 years.

Debt Coverage: SITE's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: SITE's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: SITE has a high level of physical assets or inventory.

Debt Coverage by Assets: SITE's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is SiteOne Landscape Supply's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SITE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SITE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SITE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SITE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SITE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of SiteOne Landscape Supply's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Doug Black (54yo)

5.8yrs

Tenure

US$3,516,748

Compensation

Mr. Doug Black has been Chief Executive Officer of SiteOne Landscape Supply, Inc. (alternate name John Deere Landscapes, LLC) since April 1, 2014 and has been its Chairman of the Board since June 23, 2017. ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD3.52M) is about average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

51yo

Average Age

Experienced Management: SITE's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

57yo

Average Age

Experienced Board: SITE's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SITE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$363,88018 Nov 19
John Guthrie
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,000
Max PriceUS$90.97
SellUS$97,65004 Sep 19
Greg Weller
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares1,250
Max PriceUS$78.12
SellUS$24,37508 Aug 19
John Guthrie
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares332
Max PriceUS$73.42
SellUS$66,43007 Aug 19
Greg Weller
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares922
Max PriceUS$72.05
SellUS$118,11828 May 19
Ross Anker
EntityIndividual
Shares1,820
Max PriceUS$64.90
SellUS$1,804,07823 May 19
Ross Anker
EntityIndividual
Shares27,072
Max PriceUS$66.64

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Management Team

  • Doug Black (54yo)

    Chairman of the Board & CEO

    • Tenure: 5.8yrs
    • Compensation: US$3.52m
  • John Guthrie (54yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: US$923.09k
  • Joe Ketter (50yo)

    Senior Vice President of Human Resources

    • Tenure: 4.5yrs
    • Compensation: US$616.30k
  • Briley Brisendine (48yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$1.01m
  • Greg Kirksey

    Director of Communications

    • Scott Salmon (51yo)

      Executive VP of Strategy & Development

      • Tenure: 0.8yrs
    • Greg Weller

      Senior Vice President of Operations

      • Tenure: 0.7yrs
    • Sean Kramer

      Chief Information Officer

      • Tenure: 6yrs

    Board Members

    • Jack Wyszomierski (63yo)

      Independent Director

      • Tenure: 3.8yrs
      • Compensation: US$173.76k
    • Jeri Isbell (61yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$173.76k
    • Bill Douglas (58yo)

      Lead Director

      • Tenure: 2.6yrs
      • Compensation: US$213.76k
    • Webster Dunbar (57yo)

      Independent Director

      • Tenure: 2.8yrs
      • Compensation: US$156.26k
    • Fred Diaz (54yo)

      Independent Director

      • Tenure: 2.4yrs
      • Compensation: US$151.81k
    • Doug Black (54yo)

      Chairman of the Board & CEO

      • Tenure: 5.8yrs
      • Compensation: US$3.52m
    • Larisa Drake (47yo)

      Independent Director

      • Tenure: 0.7yrs

    Company Information

    SiteOne Landscape Supply, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: SiteOne Landscape Supply, Inc.
    • Ticker: SITE
    • Exchange: NYSE
    • Founded:
    • Industry: Trading Companies and Distributors
    • Sector: Capital Goods
    • Market Cap: US$3.917b
    • Shares outstanding: 41.38m
    • Website: https://siteone.com

    Number of Employees


    Location

    • SiteOne Landscape Supply, Inc.
    • 300 Colonial Center Parkway
    • Suite 600
    • Roswell
    • Georgia
    • 30076
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SITENYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2016
    0S0DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2016

    Biography

    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 120,000 stock keeping units, including irrigation supplies, fertilizer and control products, landscape accessories, nursery goods, outdoor lightings, and ice melt products, as well as hardscapes, such as pavers, natural stones, and blocks. It also offers consultative services, which include assistance with irrigation network design, commercial project planning, generation of sales leads, marketing services and product support, and a series of technical and business management seminars; and distributes branded products of third parties. The company 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. SiteOne Landscape Supply, Inc. is headquartered in Roswell, Georgia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 00:36
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/29
    Annual Earnings2018/12/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.