Stock Information
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SITESiteOne Landscape Supply Inc

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Company Info

CEO

Doug Black

Location

Georgia, USA

Exchange

NYSE

Website

https://siteone.com

Summary

SiteOne Landscape Supply, Inc.

Company Info

CEO

Doug Black

Location

Georgia, USA

Exchange

NYSE

Website

https://siteone.com

Summary

SiteOne Landscape Supply, Inc.

AI Insights for SITE
2 min read

Quick Summary

SiteOne Landscape Supply, Inc. is a leading wholesale distributor catering to landscape professionals throughout the United States and Canada. The company supplies an extensive range of products for the design, installation, and maintenance of outdoor spaces including lawns, gardens, and golf courses. SiteOne primarily serves residential and commercial landscaping firms, offering them access to approximately 135,000 stock keeping units sourced from multiple vendors. Its customer base includes landscape contractors, golf course superintendents, municipalities, and other organizations responsible for outdoor maintenance and improvement. The company is headquartered in Roswell, Georgia, and is led by CEO Doug Black.

The Bull Case

  • SiteOne benefits from its expansive distribution network with over 690 branches, making it the largest national player in wholesale landscape supply.
  • Its broad product portfolio and strategic acquisition history allow for scale advantages, improved service capabilities, and increased market share.
  • The company has a strong brand presence among landscape professionals and is rapidly investing in digital tools that have resulted in substantial increases in e-commerce and digital orders.
  • Moreover, SiteOne maintains robust working capital and liquidity, positioning it well for opportunistic acquisitions and potential stock repurchases.
  • Its experienced leadership team and focus on customer service further reinforce its competitive edge.

The Bear Case

  • SiteOne’s organic growth is sensitive to weather fluctuations and macroeconomic cycles, especially in construction and housing demand.
  • The company’s reliance on acquisitions for growth could become a weakness if quality opportunities diminish or integration proves challenging.
  • Its gross margins are exposed to both product deflation (as seen in pipes and grass seed) and rising freight costs, which can reduce profitability.
  • The company reported a net loss in the last quarter, indicating ongoing pressure on bottom-line results.
  • Additionally, increased SG&A as a percentage of sales shows potential vulnerability to operational cost spikes.

Key Risks

  • The company faces external risks including broader economic downturns, inflation, and interest rate hikes that could dampen commercial and residential landscaping demand.
  • Price deflation in key products and rising freight or supply chain costs can pressure margins.
  • Potential tariffs on imported goods pose a risk to product input costs and pricing power.
  • Internal integration challenges from acquisitions or operational disruptions amid rapid growth may affect performance.

What to Watch

UpcomingIn the most recent quarter, SiteOne completed two significant acquisitions, which contributed approximately $45 million in sales, strengthening its branch presence to more than 690 locations in North America.
UpcomingThe company reported a 4% net sales increase and a 6% rise in adjusted EBITDA, despite a slight decline in organic daily sales attributed to adverse weather and a softer renovation market.
UpcomingThere was a 140% surge in digital sales, reflecting a successful deployment of digital tools and centralized dispatch processes, which improved both customer service and delivery cost management.
ExpectedLooking ahead to the next quarter, SiteOne expects organic growth in the low single-digit range, although pricing is projected to be flat or may decrease slightly due to ongoing deflationary pressures in products like PVC pipe and grass seed.

Price Drivers

  • SiteOne’s stock price is influenced by its quarterly earnings reports, acquisition activity, and trends in the broader construction and housing market.
  • Sales growth, particularly through acquisitions, directly contributes to revenue expansion and investor sentiment.
  • Weather-driven fluctuations affect organic sales, while input costs like freight and product prices (PVC, grass seed) can impact margins and net income.
  • Broader macroeconomic conditions, such as inflation, interest rates, and tariff policies on imported goods, also play significant roles.

Recent News

  • Recently, SiteOne announced the acquisition of Grove Nursery, a Minnesota-based wholesale distributor of nursery products, further strengthening its presence in the Minneapolis area.
  • This marks the company’s third acquisition in 2025 and highlights ongoing strategic expansion efforts across North America.
  • In its first quarter of 2025, SiteOne reported moderate sales and EBITDA growth, largely driven by recent acquisitions and a significant uptick in digital sales.
  • However, the company also noted a widening net loss and softer organic sales due to adverse weather conditions.

Market Trends

  • The broader landscape supply industry is experiencing increased adoption of digital sales platforms and operational technology, with a focus on supply chain efficiency and customer convenience.
  • The market is marked by ongoing consolidation, as larger players acquire regional distributors to expand scale and reach.
  • Inflation and tariffs are influencing product costs, particularly in categories heavily dependent on imports.
  • Demand in the sector is sensitive to weather patterns and cycles in real estate construction and renovation.

AI-generated summary. Not investment advice. DYOR.

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Topics: Company overview • Products • Competitors • Strengths & Risks

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