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

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

US | Industrials | Industrial - Distribution | NYSE

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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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