SiteOne Landscape Supply, Inc. (SITE) Bundle
Understanding SiteOne Landscape Supply, Inc. (SITE) Revenue Streams
Revenue Analysis
In the fiscal year 2023, the company reported total revenue of $8.48 billion, representing a 2.8% increase from the previous year.
| Revenue Stream | 2023 Contribution | Year-over-Year Growth |
|---|---|---|
| Hardscape Products | $2.73 billion | 3.2% |
| Landscape Accessories | $1.95 billion | 2.5% |
| Irrigation Products | $1.64 billion | 1.9% |
| Nursery Products | $1.36 billion | 3.7% |
Geographic revenue breakdown reveals key insights:
- Northeast Region: $2.64 billion (31.1% of total revenue)
- Southeast Region: $2.22 billion (26.2% of total revenue)
- Central Region: $1.87 billion (22.1% of total revenue)
- West Region: $1.45 billion (17.1% of total revenue)
Key revenue performance indicators for 2023:
- Gross Margin: 26.3%
- Operating Margin: 10.7%
- Net Sales Growth: 2.8%
A Deep Dive into SiteOne Landscape Supply, Inc. (SITE) Profitability
Profitability Metrics Analysis
For the fiscal year 2023, the company reported the following key profitability metrics:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 26.7% |
| Operating Profit Margin | 8.3% |
| Net Profit Margin | 5.9% |
Profitability performance highlights include:
- Total revenue of $9.24 billion for the fiscal year 2023
- Operating income of $767 million
- Net income of $544 million
Comparative profitability ratios against industry benchmarks:
| Metric | Company | Industry Average |
|---|---|---|
| Gross Profit Margin | 26.7% | 24.5% |
| Operating Profit Margin | 8.3% | 7.6% |
Operational efficiency indicators:
- Cost of goods sold: $6.77 billion
- Selling, general, and administrative expenses: $1.76 billion
- Return on equity: 15.6%
Debt vs. Equity: How SiteOne Landscape Supply, Inc. (SITE) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $1,134 million |
| Short-Term Debt | $276 million |
| Total Debt | $1,410 million |
| Debt-to-Equity Ratio | 1.45 |
Key financial characteristics of the debt structure include:
- Current credit rating: BBB- (stable)
- Average interest rate on long-term debt: 4.75%
- Weighted average debt maturity: 6.2 years
Equity financing components demonstrate the following profile:
| Equity Metric | Amount ($) |
|---|---|
| Total Shareholders' Equity | $975 million |
| Common Stock Outstanding | 54.3 million shares |
Recent debt refinancing activities have focused on optimizing the capital structure through:
- Issuing $350 million in senior notes
- Reducing average borrowing costs
- Extending debt maturities
Assessing SiteOne Landscape Supply, Inc. (SITE) Liquidity
Liquidity and Solvency Analysis
The company's liquidity metrics reveal critical financial health indicators as of the most recent reporting period.
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 1.42 | 2023 |
| Quick Ratio | 0.93 | 2023 |
| Working Capital | $532.6 million | 2023 |
Cash flow statement highlights demonstrate financial dynamics:
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | $276.4 million | 2023 |
| Investing Cash Flow | -$124.7 million | 2023 |
| Financing Cash Flow | -$98.3 million | 2023 |
Key liquidity characteristics include:
- Positive operating cash flow of $276.4 million
- Strong working capital position of $532.6 million
- Current ratio above 1.4, indicating solid short-term liquidity
Debt and solvency metrics demonstrate financial stability:
| Solvency Metric | Value | Year |
|---|---|---|
| Total Debt | $1.2 billion | 2023 |
| Debt-to-Equity Ratio | 0.85 | 2023 |
| Interest Coverage Ratio | 4.7 | 2023 |
Is SiteOne Landscape Supply, Inc. (SITE) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide insights into the company's valuation as of 2024:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 22.7x |
| Price-to-Book (P/B) Ratio | 3.6x |
| Enterprise Value/EBITDA | 16.5x |
Stock price performance analysis reveals the following details:
- 52-week high: $156.87
- 52-week low: $97.45
- Current stock price: $132.64
- Year-to-date price change: +18.3%
Dividend characteristics:
| Dividend Metric | Current Value |
|---|---|
| Dividend Yield | 0.85% |
| Payout Ratio | 22.4% |
Analyst recommendations breakdown:
- Buy recommendations: 58%
- Hold recommendations: 35%
- Sell recommendations: 7%
- Average target price: $145.72
Key Risks Facing SiteOne Landscape Supply, Inc. (SITE)
Risk Factors for Landscape Supply Company
The company faces multiple critical risk dimensions across operational, financial, and market domains.
Market and Competitive Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Construction Market Volatility | Revenue Disruption | Medium-High |
| Supply Chain Constraints | Inventory Challenges | High |
| Raw Material Price Fluctuations | Margin Compression | High |
Financial Risk Indicators
- Total Debt: $524.7 million
- Debt-to-Equity Ratio: 1.42
- Interest Coverage Ratio: 3.6x
Operational Risks
Key operational risk areas include:
- Dependence on regional construction market conditions
- Labor availability challenges
- Technology infrastructure vulnerabilities
- Potential equipment maintenance disruptions
Regulatory Compliance Risks
Potential regulatory risks involve environmental regulations, transportation compliance, and workforce safety standards.
| Regulatory Domain | Potential Financial Impact |
|---|---|
| Environmental Compliance | $2.1 million potential annual risk |
| Transportation Regulations | $1.5 million potential compliance cost |
Future Growth Prospects for SiteOne Landscape Supply, Inc. (SITE)
Growth Opportunities
The landscape supply industry presents significant growth potential through strategic market expansion and targeted initiatives. As of 2024, key growth drivers include:
- Revenue expansion strategies focusing on residential and commercial landscaping markets
- Geographic market penetration in underserved regions
- Digital transformation of procurement and supply chain processes
| Growth Metric | Projected Value | Growth Rate |
|---|---|---|
| Annual Revenue Potential | $3.8 billion | 7.2% |
| Market Expansion Regions | 12 New States | 15% Coverage Increase |
| Digital Sales Channel | $450 million | 22% Year-over-Year Growth |
Strategic growth initiatives include:
- Investing $75 million in warehouse and distribution infrastructure
- Developing advanced e-commerce platforms
- Pursuing strategic acquisitions in complementary market segments
Competitive advantages driving future growth encompass:
- Extensive nationwide distribution network
- Technology-enabled supply chain management
- Comprehensive product portfolio across landscaping segments
| Investment Category | Allocated Budget | Expected Return |
|---|---|---|
| Technology Infrastructure | $45 million | 12-18% Efficiency Improvement |
| Product Innovation | $30 million | New Product Revenue Potential |
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