“The addition of JMJ expands our footprint in the fast-growing Houston market and allows us to better serve our combined customers with a full line of landscaping products and supplies.” “We are pleased to welcome the experienced and talented JMJ team to the SiteOne family,” said Doug Black, Chairman and CEO of SiteOne Landscape Supply. (NYSE: SITE) announced today the company completed its acquisition of JMJ Organics (“JMJ”), a wholesale distributor of landscape supplies and nursery products with five locations in the Houston, Texas market. Simply Wall St has no position in any stocks mentioned.JMJ Organics Joins SiteOne Landscape Supply Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. If you want to continue researching SiteOne Landscape Supply, you might be interested to know about the 1 warning signthat our analysis has discovered. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. And the stock has followed suit returning a meaningful 78% to shareholders over the last five years. To sum it up, SiteOne Landscape Supply has simply been reinvesting capital steadily, at those decent rates of return. Story continues The Bottom Line On SiteOne Landscape Supply's ROCE View our latest analysis for SiteOne Landscape Supply That's a relatively normal return on capital, and it's around the 14% generated by the Trade Distributors industry. Thus, SiteOne Landscape Supply has an ROCE of 12%. Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)Ġ.12 = US$272m ÷ (US$2.9b - US$683m) (Based on the trailing twelve months to July 2023). Analysts use this formula to calculate it for SiteOne Landscape Supply: Return On Capital Employed (ROCE): What Is It?įor those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. That's why when we briefly looked at SiteOne Landscape Supply's ( NYSE:SITE) ROCE trend, we were pretty happy with what we saw. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. There are a few key trends to look for if we want to identify the next multi-bagger.
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