NYSE:SITE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record with moderate growth potential.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

SITE

1.4%

US Trade Distributors

1.5%

US Market


1 Year Return

68.3%

SITE

1.4%

US Trade Distributors

6.9%

US Market

Return vs Industry: SITE exceeded the US Trade Distributors industry which returned 1.4% over the past year.

Return vs Market: SITE exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

SITEIndustryMarket
7 Day7.9%1.4%1.5%
30 Day6.0%4.1%5.9%
90 Day63.0%28.3%17.9%
1 Year68.3%68.3%3.4%1.4%9.2%6.9%
3 Year126.9%126.9%21.9%16.2%36.4%27.5%
5 Yearn/a32.8%22.9%64.9%47.0%

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?

57.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SITE ($116.19) is trading above our estimate of fair value ($56.67)

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 (57.1x) compared to the US Trade Distributors industry average (14.9x).

PE vs Market: SITE is poor value based on its PE Ratio (57.1x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SITE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SITE is overvalued based on its PB Ratio (12.9x) compared to the US Trade Distributors industry average (1.2x).


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?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SITE's forecast earnings growth (25.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SITE's earnings (25.3% per year) are forecast to grow faster than the US market (22.4% per year).

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

Revenue vs Market: SITE's revenue (6.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: SITE's revenue (6.7% 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 low in 3 years time (15%).


Next Steps

Past Performance

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

51.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SITE has high quality earnings.

Growing Profit Margin: SITE's current net profit margins (3.5%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: SITE has become profitable over the past 5 years, growing earnings by 51.5% per year.

Accelerating Growth: SITE's earnings growth over the past year (26.1%) is below its 5-year average (51.5% per year).

Earnings vs Industry: SITE earnings growth over the past year (26.1%) exceeded the Trade Distributors industry -10.2%.


Return on Equity

High ROE: Whilst SITE's Return on Equity (22.33%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is SiteOne Landscape Supply's financial position?


Financial Position Analysis

Short Term Liabilities: SITE's short term assets ($916.2M) exceed its short term liabilities ($395.4M).

Long Term Liabilities: SITE's short term assets ($916.2M) exceed its long term liabilities ($873.6M).


Debt to Equity History and Analysis

Debt Level: SITE's debt to equity ratio (174%) is considered high.

Reducing Debt: SITE's debt to equity ratio has increased from 45.1% to 174% 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 (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Doug Black (55yo)

6.25yrs

Tenure

US$4,067,563

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 ($USD4.07M) is below average for companies of similar size in the US market ($USD7.32M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Doug Black
Chairman of the Board & CEO6.25yrsUS$4.07m0.88% $42.8m
John Guthrie
Executive VP6.58yrsUS$989.57k0.037% $1.8m
Greg Weller
Executive Vice President of Operations1.17yrsUS$889.95k0.023% $1.1m
Briley Brisendine
Executive VP4.83yrsUS$1.05m0.046% $2.2m
Scott Salmon
Executive VP of Strategy & Development1.33yrsUS$1.39m0.0018% $89.0k
Sean Kramer
Chief Information Officer6.5yrsno datano data
Greg Kirksey
Director of Communicationsno datano datano data
Shannon Versaggi
Senior VP & Chief Marketing Officer0.42yrno datano data
Joseph Ketter
Executive Vice President of Human Resources5yrsUS$616.30k0.015% $732.5k

4.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: SITE's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Doug Black
Chairman of the Board & CEO6.25yrsUS$4.07m0.88% $42.8m
Jack Wyszomierski
Independent Director4.25yrsUS$197.22k0.012% $580.8k
Jeri Isbell
Independent Director3.75yrsUS$198.79kno data
William Douglas
Independent Lead Director3.08yrsUS$240.36k0.012% $580.8k
Webster Dunbar
Independent Director3.33yrsUS$178.15kno data
Fred Diaz
Independent Director2.92yrsUS$190.65kno data
Larisa Drake
Independent Director1.17yrsUS$145.89kno data

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: SITE's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

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$4.864b
  • Shares outstanding: 41.86m
  • 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, which consists controllers, valves, sprinkler heads, and irrigation and drainage pipes; fertilizers, grass seed, and ice melt products; control products, which include herbicides, fungicides, rodenticides, and other pesticides; landscape accessories, which comprise mulches, soil amendments, tools, and sod; nursery goods, which consist of deciduous shrubs, evergreen shrubs and trees, ornamental trees, shade trees, both field grown and container-grown nursery stock, and plant species; and outdoor lightings, which include accent lights, dark lights, path lights, up lights, down lights, wall lights, and pool and aquatic area lighting, as well as hardscapes, such as pavers, natural stones, blocks, and other durable materials. It also offers consultative services consisting of 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. As of December 29, 2019, the company had 550 branches in the 45 United States and six Canadian provinces. It offers its products under LESCO, SiteOne Green Tech, and Pro-Trade brand names. 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 Analysis2020/07/15 23:51
End of Day Share Price2020/07/15 00:00
Earnings2020/03/29
Annual Earnings2019/12/29


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.