Is Now An Opportune Moment To Examine SiteOne Landscape Supply, Inc. (NYSE:SITE)?

SiteOne Landscape Supply, Inc. (NYSE:SITE), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$174 and falling to the lows of US$123. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether SiteOne Landscape Supply's current trading price of US$126 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at SiteOne Landscape Supply’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for SiteOne Landscape Supply

Is SiteOne Landscape Supply Still Cheap?

SiteOne Landscape Supply appears to be overvalued by 35% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$126 on the market compared to my intrinsic value of $93.59. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that SiteOne Landscape Supply’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from SiteOne Landscape Supply?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 49% over the next couple of years, the future seems bright for SiteOne Landscape Supply. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? SITE’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe SITE should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on SITE for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for SITE, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into SiteOne Landscape Supply, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with SiteOne Landscape Supply, and understanding it should be part of your investment process.

If you are no longer interested in SiteOne Landscape Supply, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.