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Should you consider NYSE:SITE for quality investing?

By Mill Chart

Last update: Aug 30, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SITEONE LANDSCAPE SUPPLY INC (NYSE:SITE) is suited for quality investing. Investors should of couse do their own research, but we spotted SITEONE LANDSCAPE SUPPLY INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of SITEONE LANDSCAPE SUPPLY INC

  • SITEONE LANDSCAPE SUPPLY INC has shown strong performance in revenue growth over the past 5 years, with a 16.61% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 15.39%, SITEONE LANDSCAPE SUPPLY INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • SITEONE LANDSCAPE SUPPLY INC maintains a healthy Debt/Free Cash Flow Ratio of 1.48, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • The Profit Quality (5-year) of SITEONE LANDSCAPE SUPPLY INC stands at 106.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of SITEONE LANDSCAPE SUPPLY INC has been remarkable, with 27.78% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • SITEONE LANDSCAPE SUPPLY INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, SITE scores 5 out of 10 in our fundamental rating. SITE was compared to 52 industry peers in the Trading Companies & Distributors industry. SITE has only an average score on both its financial health and profitability. SITE is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of SITE contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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