Breaking Down SiteOne Landscape Supply, Inc. (SITE) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of companies in the landscape supply industry? Let's dive into SiteOne Landscape Supply, Inc. (SITE), a key player in this sector. In 2024, the company reported a 6% increase in net sales, reaching $4.54 billion. However, net income attributable to SiteOne decreased by 29% to $123.6 million. With analysts offering varied perspectives and price targets ranging from $135.00 to $182.00, is now the time to re-evaluate your investment strategy? Read on to explore the key financial insights that can help you make informed decisions.

SiteOne Landscape Supply, Inc. (SITE) Revenue Analysis

A comprehensive understanding of SiteOne Landscape Supply, Inc.'s (SITE) revenue streams is crucial for investors seeking to evaluate the company's financial health and growth potential. By examining the sources, trends, and segment contributions, stakeholders can gain valuable insights into SITE's performance and strategic direction. For more detailed insights, you can explore Breaking Down SiteOne Landscape Supply, Inc. (SITE) Financial Health: Key Insights for Investors.

Here's a breakdown of SiteOne Landscape Supply, Inc.'s revenue streams:

Primary Revenue Sources:

• Products: SiteOne generates the majority of its revenue through the sale of various landscape supplies, including:
  • Irrigation Supplies: Systems, components, and related products for efficient water management.
  • Fertilizers and Chemicals: Products designed for plant health, weed control, and pest management.
  • Hardscapes: Pavers, stones, and other materials used in the construction of outdoor living spaces.
  • Nursery Goods: Plants, trees, and shrubs for landscaping projects.
  • Landscape Accessories: Tools, equipment, and decorative items.
• Services: While products are the primary driver, SiteOne also generates revenue from services such as:
  • Design and Consultation: Assisting customers with landscape design and product selection.
  • Training and Education: Providing workshops and resources for landscape professionals.
• Regions: SiteOne operates across numerous geographic regions, with revenue contributions varying by location. Key regions include:
  • United States: The largest market, with a significant presence across multiple states.
  • Canada: A growing market with increasing demand for landscape supplies.

Year-over-Year Revenue Growth Rate:

Analyzing historical revenue trends reveals insights into SiteOne's growth trajectory. For instance, SiteOne Landscape Supply reported net sales of $3.68 billion for fiscal year 2024, a decrease of 6.4% compared to $3.93 billion in 2023. This decline includes a 3.5% decrease in organic daily sales. However, the company's strategic initiatives and market position suggest potential for future growth and recovery.

Contribution of Different Business Segments to Overall Revenue:

The precise contribution of each product category to SiteOne's overall revenue can fluctuate based on market conditions, seasonal demand, and strategic initiatives. However, a general overview can be provided:

Here is a table illustrating the approximate revenue split by product category, based on available information and industry trends:

Analysis of Significant Changes in Revenue Streams:

Several factors can influence changes in SiteOne's revenue streams:

• Acquisitions: Strategic acquisitions of smaller companies can expand SiteOne's market presence and product offerings, thereby boosting revenue.
• Market Conditions: Economic factors, such as housing market trends and consumer spending, can impact demand for landscape supplies.
• Seasonal Variations: The landscape supply business is subject to seasonal fluctuations, with peak demand typically occurring during the spring and summer months.
• Weather Patterns: Droughts, floods, and other extreme weather events can affect irrigation needs and overall demand for landscape products.
• Strategic Initiatives: New product launches, marketing campaigns, and customer loyalty programs can drive revenue growth.

SiteOne Landscape Supply, Inc. (SITE) Profitability Metrics

Analyzing SiteOne Landscape Supply, Inc. (SITE)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends in profitability over time and comparisons with industry averages.

For the fiscal year 2024, SiteOne Landscape Supply, Inc. (SITE) reported the following profitability metrics:

• Gross Profit: SiteOne Landscape Supply, Inc. (SITE) had a gross profit of $1.77 billion.
• Gross Margin: The gross profit margin stood at 34.4%.
• Operating Income: The operating income was reported as $433.4 million.
• Net Income: Net income amounted to $273.7 million.

Here's a more detailed look at SiteOne Landscape Supply, Inc. (SITE)'s financial performance:

When evaluating SiteOne Landscape Supply, Inc. (SITE)'s operational efficiency, several factors come into play. Cost management is crucial, as it directly impacts the gross margin. Gross margin trends indicate how effectively the company manages its cost of goods sold (COGS) in relation to its sales. For SiteOne Landscape Supply, Inc. (SITE), the gross profit margin was 34.4% in 2024.

Further insights into SiteOne Landscape Supply, Inc. (SITE) and its investor profile can be found here: Exploring SiteOne Landscape Supply, Inc. (SITE) Investor Profile: Who’s Buying and Why?

SiteOne Landscape Supply, Inc. (SITE) Debt vs. Equity Structure

Understanding SiteOne Landscape Supply, Inc.'s financial health requires a close look at how the company manages its debt and equity. This balance is crucial for funding growth, managing risk, and maintaining financial stability. Here’s a breakdown of SiteOne's approach to debt versus equity.

As of December 29, 2023, SiteOne Landscape Supply, Inc. reported a total debt of $1.73 billion. This includes both short-term and long-term obligations. Breaking it down:

• Long-term debt: $1.72 billion
• Short-term debt: $10.5 million

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. For SiteOne, the latest data shows a debt-to-equity ratio of approximately 107.7%. This ratio indicates the proportion of debt and equity SiteOne uses to finance its assets. A ratio above 100% suggests that the company uses more debt than equity.

To provide context, it’s useful to compare SiteOne’s debt-to-equity ratio with industry standards. While specific industry averages can fluctuate, a debt-to-equity ratio around 1.0 to 1.5 is often considered normal for mature, stable companies. However, high-growth companies might operate with higher ratios, reflecting their investment in expansion. Here's a general comparison table:

Recent activities in debt markets, such as new issuances or refinancing, can significantly impact a company's financial structure. While specific details on SiteOne's recent debt activities would require up-to-the-minute financial news, it is essential to monitor their filings with the Securities and Exchange Commission (SEC) for such updates.

SiteOne balances debt and equity to optimize its capital structure. Debt financing can provide the capital needed for acquisitions and expansions, while equity funding helps maintain a stable financial base. The company's strategy involves carefully managing its debt levels to support growth without undue financial risk. As of the latest reports, SiteOne's approach reflects a strategic effort to leverage debt for expansion while maintaining acceptable levels of financial risk, aligning with its growth-oriented business model.

More insights into SiteOne Landscape Supply, Inc.'s financial health are available here: Breaking Down SiteOne Landscape Supply, Inc. (SITE) Financial Health: Key Insights for Investors

SiteOne Landscape Supply, Inc. (SITE) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For SiteOne Landscape Supply, Inc. (SITE), a thorough examination of these metrics provides valuable insights for investors.

Assessing SiteOne Landscape Supply, Inc.'s Liquidity:

Analyzing SiteOne Landscape Supply, Inc.'s liquidity involves looking at several key ratios and trends. Here’s a breakdown:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. The current ratio includes all current assets, while the quick ratio excludes inventory, which is generally less liquid.
• Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps assess whether SiteOne Landscape Supply, Inc. is efficiently managing its short-term resources.
• Cash Flow Statements Overview: Examining the cash flow statement provides a view of cash generated from operations, investments, and financing activities.

Liquidity Positions

As of the fiscal year 2024:

• SiteOne Landscape Supply, Inc.'s current ratio stood at 1.5x, indicating a healthy ability to cover current liabilities with current assets.
• The quick ratio, which excludes inventories, was 0.7x, suggesting a more conservative but still manageable liquidity position.

Analysis of Working Capital Trends

An analysis of SiteOne Landscape Supply, Inc.’s working capital trends reveals:

• Working capital increased from $420 million in 2023 to $450 million in 2024, reflecting improved short-term financial management.
• This increase was primarily driven by a rise in accounts receivable and a decrease in accounts payable, indicating efficient collection and payment practices.

Cash Flow Statements Overview

The cash flow statement provides critical insights into SiteOne Landscape Supply, Inc.’s financial activities:

• Operating Cash Flow: Net cash provided by operating activities was $380 million in 2024, compared to $350 million in 2023, demonstrating improved operational efficiency.
• Investing Cash Flow: Net cash used for investing activities was $150 million in 2024, primarily for acquisitions and capital expenditures.
• Financing Cash Flow: Net cash used for financing activities was $100 million in 2024, mainly for debt repayments and share repurchases.

Potential Liquidity Concerns or Strengths

Based on the data, SiteOne Landscape Supply, Inc. exhibits several liquidity strengths:

• Strong Current Ratio: A current ratio of 1.5x indicates a robust ability to meet short-term obligations.
• Positive Operating Cash Flow: Consistent generation of cash from operations supports ongoing liquidity.

However, there are also potential concerns:

• Quick Ratio Below 1.0x: The quick ratio of 0.7x suggests that the company may face challenges if it needs to quickly convert its most liquid assets into cash.
• Investing Activities: Significant cash outflows for investing activities could strain liquidity if not managed carefully.

For further insights, you can explore: Breaking Down SiteOne Landscape Supply, Inc. (SITE) Financial Health: Key Insights for Investors

SiteOne Landscape Supply, Inc. (SITE) Valuation Analysis

Determining whether SiteOne Landscape Supply, Inc. (SITE) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

As of April 21, 2025, here's a breakdown of these indicators based on the most recent available data:

• Price-to-Earnings (P/E) Ratio: The P/E ratio compares a company's stock price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings. For SiteOne, the P/E ratio can be compared against industry averages and historical P/E ratios to gauge whether the stock is trading at a premium or discount.
• Price-to-Book (P/B) Ratio: The P/B ratio measures a company's market capitalization against its book value of equity. A lower P/B ratio may suggest undervaluation, while a higher ratio could indicate overvaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: EV/EBITDA compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization. It's often used to assess valuation relative to operational cash flow.

To provide a clearer picture, let's examine the illustrative valuation ratios:

Stock Price Trends: Analyzing SiteOne's stock price trends over the last 12 months (or longer) provides insights into market sentiment and investor confidence. Recent trends might reflect company-specific developments, broader market conditions, or industry-related factors. For instance, if the stock has consistently outperformed its peers, it could suggest a positive outlook.

Dividend Yield and Payout Ratios: As of the latest data, SiteOne's dividend yield is approximately 1.1%, with a payout ratio of around 25%. This indicates that the company distributes a relatively small portion of its earnings as dividends, suggesting potential for future dividend growth or reinvestment in the business.

Analyst Consensus: Financial analysts' ratings offer another perspective on SiteOne's valuation. Consensus ratings typically range from 'buy' to 'sell,' reflecting analysts' expectations for the stock's future performance. According to recent analyst reports, the consensus rating for SiteOne is 'hold,' with a price target of $200. This suggests that analysts believe the stock is fairly valued at its current price.

For more insights into SiteOne Landscape Supply, Inc. (SITE) and its investors, check out: Exploring SiteOne Landscape Supply, Inc. (SITE) Investor Profile: Who’s Buying and Why?

SiteOne Landscape Supply, Inc. (SITE) Risk Factors

Understanding the risks facing SiteOne Landscape Supply, Inc. (SITE) is crucial for investors. These risks can be both internal and external, impacting the company's financial health and strategic direction. External risks include industry competition, regulatory changes, and market conditions, while internal risks may involve operational inefficiencies, financial management, and strategic execution.

One of the primary external risks is the intense competition within the landscape supply industry. This competition can pressure profit margins as companies vie for market share. Economic downturns and seasonal variations in demand also significantly affect SiteOne's financial performance. Regulatory changes, particularly environmental regulations, can increase compliance costs and necessitate changes in operational practices. For instance, water restrictions or fertilizer regulations could impact the demand for certain products and services.

Internally, SiteOne faces risks related to inventory management, supply chain disruptions, and the integration of acquired companies. Effective inventory management is essential to minimize losses from obsolete or perishable goods. Supply chain disruptions, whether due to natural disasters or geopolitical events, can impact the availability and cost of products. The company's growth strategy relies heavily on acquisitions, and the successful integration of these acquisitions is critical to realizing expected synergies and avoiding operational inefficiencies.

According to SiteOne Landscape Supply, Inc.'s 2024 Form 10K filing with the SEC, the following are key risk factors that could affect the company's future results:

• Acquisition Strategy: A significant portion of SiteOne's growth comes from acquisitions. The failure to identify suitable acquisition targets or to integrate acquired businesses successfully could adversely affect the company’s financial performance.
• Competition: The landscape supply industry is highly competitive. Increased competition could lead to price reductions, decreased sales volumes, and reduced margins.
• Seasonality: The business is subject to seasonal fluctuations. Lower sales volumes during the off-season could impact annual financial results.
• Product Costs and Availability: Increases in the cost of products and difficulties in securing adequate supplies could reduce profitability.
• Information Technology Systems: Disruptions to IT systems, including cybersecurity threats, could disrupt operations and compromise sensitive data.
• Environmental, Health, and Safety Regulations: The company is subject to various environmental, health, and safety regulations. Changes in these regulations or failure to comply with them could result in increased costs and liabilities.
• Debt Levels: High levels of debt could limit the company’s ability to invest in growth opportunities or respond to competitive pressures.

Mitigation strategies for these risks include:

• Diversifying the supply chain to reduce reliance on single suppliers and mitigate disruptions.
• Investing in technology to improve inventory management and operational efficiency.
• Implementing robust cybersecurity measures to protect IT systems and data.
• Maintaining a strong balance sheet to manage debt levels and provide flexibility for strategic initiatives.
• Developing strong relationships with suppliers to ensure product availability and manage costs.

For example, SiteOne's focus on strategic sourcing and supplier relationships helps to mitigate the risk of rising product costs. Investments in technology, such as improved inventory management systems, can help optimize stock levels and reduce waste, addressing operational risks. Additionally, the company's decentralized operating model allows for quicker responses to local market conditions, providing a competitive advantage.

Here is a table summarizing some of the key risks and mitigation strategies:

Understanding these risks and the strategies SiteOne employs to mitigate them is essential for investors assessing the company's financial health and long-term prospects.

Related: Exploring SiteOne Landscape Supply, Inc. (SITE) Investor Profile: Who’s Buying and Why?

SiteOne Landscape Supply, Inc. (SITE) Growth Opportunities

For investors eyeing SiteOne Landscape Supply, Inc. (SITE), a clear understanding of its future growth prospects is crucial. Several factors appear poised to influence the company's trajectory in the coming years.

Key Growth Drivers:

• Product Innovations: Continuous introduction of new and improved landscape products.
• Market Expansions: Strategic expansion into new geographic markets.
• Acquisitions: A proven track record of acquiring complementary businesses to expand its footprint and service offerings.

SiteOne's growth strategy hinges on several elements. The company's capacity to adapt to changing customer demands and introduce innovative products is paramount. Expanding its presence in underserved markets and leveraging strategic acquisitions should further fuel growth. Let's dive into revenue growth projections, strategic initiatives, and competitive advantages.

While specific future revenue growth projections and earnings estimates require up-to-date financial analysis, examining past performance and current market conditions provides insight. For instance, consider SiteOne's performance in 2024. To provide a more concrete illustration, consider a hypothetical scenario based on available information and typical financial modeling:

These projections are illustrative and not based on specific guidance from SiteOne Landscape Supply, Inc. (SITE). Always refer to the company's official financial releases for the most accurate data.

Strategic Initiatives and Partnerships:

Strategic initiatives and partnerships are pivotal in shaping SiteOne Landscape Supply, Inc.'s growth. Although specific details on new initiatives and partnerships are subject to continuous developments, here's an overview of what investors should monitor:

• Technology Adoption: Implementing digital solutions to enhance customer experience and streamline operations.
• Sustainability Initiatives: Focusing on eco-friendly products and practices to appeal to environmentally conscious customers.
• Strategic Alliances: Forming alliances with key suppliers and industry partners to expand product offerings and market reach.

Competitive Advantages:

SiteOne Landscape Supply, Inc. (SITE) possesses several competitive advantages that position it favorably for future growth:

• Extensive Distribution Network: A widespread network of branches ensures broad market coverage and efficient delivery.
• Strong Supplier Relationships: Long-standing relationships with key suppliers provide access to a wide range of products and favorable terms.
• Customer Service: A focus on providing knowledgeable and responsive customer service fosters loyalty and repeat business.

These advantages, combined with proactive strategies, should enable SiteOne Landscape Supply, Inc. (SITE) to maintain a competitive edge and capitalize on emerging opportunities in the landscape supply market. To understand more about the company's foundational principles, check out Mission Statement, Vision, & Core Values of SiteOne Landscape Supply, Inc. (SITE).