A Look at SiteOne Landscape Supply’s Valuation Following Earnings Beat and New Strategic Partnership

SiteOne Landscape Supply (SITE) delivered third-quarter 2025 earnings that exceeded what analysts were looking for, signaling sturdy financial momentum. The company also unveiled a new partnership with Goodway Group to strengthen its paid media strategy and boost product category growth.

See our latest analysis for SiteOne Landscape Supply.

SiteOne’s third-quarter earnings beat and new partnership have put a spotlight on the stock. Despite some bright spots, the 1-year total shareholder return of -7.99% shows recent momentum has struggled to recover. Over the longer term, gains have been modest and investors appear to be weighing both robust results and ongoing risks as they re-evaluate the company's growth potential.

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With recent gains, upbeat analyst coverage, and the stock still trading at a notable discount to its price target, the real question is whether the market is overlooking SiteOne’s upside or if expectations have already caught up.

Most Popular Narrative: 18.5% Undervalued

SiteOne Landscape Supply's widely followed narrative assigns its fair value well above the last close, highlighting potential that the market may have missed. This setup invites readers to explore why bullish assumptions, not yet reflected in the price, could spark renewed attention.

Expansion through acquisitions and digital initiatives is strengthening market share, sales productivity, and operational efficiency. Focus on private label brands and sustainable products is enhancing margins and positioning for long-term growth.

Read the complete narrative.

Curious why margin expansion could rewrite the valuation story? The real surprise lies in how future profits and organic sales growth are projected to compound. Discover the assumptions that drive a far higher fair value and see what the narrative believes will fuel the next leg higher.

Result: Fair Value of $156.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent macro headwinds in key end markets and ongoing commodity cost volatility could quickly shift the narrative and challenge SiteOne’s expected margin growth.

Find out about the key risks to this SiteOne Landscape Supply narrative.

Another View: Multiples Tell a Cautionary Tale

While the narrative points to strong upside, the current price-to-earnings ratio of 40.6x stands far above both the industry’s 19.1x average and the peer average of 15.6x. Even compared to a fair ratio of 29.8x, SiteOne’s valuation appears stretched. This suggests there is less margin for error if growth stumbles. Could investors be paying too much for future expectations?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own SiteOne Landscape Supply Narrative

If you see the story differently or want to dig deeper into the numbers, you can easily craft your own unique view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding SiteOne Landscape Supply.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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