SiteOne Landscape Supply, Inc. SITE announced that it has acquired a wholesale distributor of nursery products, Millican Nurseries, LLC. This move will allow SiteOne Landscape to offer a broad range of products and services in the greater Boston and New England areas.
Millican Nurseries is a New England-based nursery supply distributor. For almost four decades, it has provided high-quality items and excellent customer service.
This is SiteOne Landscape's fifth acquisition so far this year. The company made 11 acquisitions in 2023. This spree reflects its ongoing expansion strategy to broaden its presence across various markets.
On Jun 10, the company announced the buyout of Cohen & Cohen Natural Stone, thus expanding its capacity to provide a full range of hardscape products and landscape supplies to its customers in eastern Canada.
On Jun 4, the company announced the acquisition of AC Florida Pavers, LLC, which operates under the trade name Hardscape.com. This buyout will expand SITE's ability to provide hardscape products to its Florida customers and is a significant addition to its existing premium hardscape offerings nationally.
On Apr 30, the company announced that it purchased a majority stake in Devil Mountain Wholesale Nursery, LLC (Devil Mountain), with the option to buy the remaining interest in future years. Devil Mountain is the largest wholesale distributor of landscape trees and plants in California. It has eight wholesale nursery distribution branches and six growing facilities across the state.
On Apr 29, 2024, SiteOne Landscape announced the acquisition of Eggemeyer, a wholesale distributor of bulk landscape supplies. It caters to the greater central and south Texas market from a location in New Braunfels, TX. This addition strengthens SITE's position as the leading bulk landscape distributor in the rapidly growing central Texas region.
As of the end of the first quarter, SiteOne Landscape had more than 690 branches and four distribution centers covering 45 U.S. states and six Canadian provinces. Despite being the industry leader and three times larger than its closest competitor, SITE currently holds only a 17% share of the $25 billion wholesale landscaping products distribution market.
In the first quarter, the company's net sales increased 8% year over year to $904.8 million. Organic daily sales increased 1% from the prior-year quarter due to solid demand. However, pricing declined 4% as double-digit deflation in commodity products like fertilizer, seed and PVC pipe more than offset modest cost increases in other product lines. SiteOne Landscape reported a loss of 43 cents per share compared with a loss of 10 cents per share in the year-ago quarter, as higher net sales were offset by lower gross margin and increased SG&A expense.
Price Performance
Shares of SiteOne Landscape have lost 29.5% over the past year compared with the industry's 9.6% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
SiteOne Landscape currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are Intellicheck, Inc. IDN, Applied Industrial Technologies AIT and Cintas Corporation CTAS. IDN currently sports a Zacks Rank #1 (Strong Buy), and AIT and CTAS carry a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Intellicheck's 2024 earnings is pegged at 2 cents per share. The consensus estimate for 2024 earnings has been unchanged in the past 60 days. The company has a trailing four-quarter average earnings surprise of 28.9%. IDN shares have gained 84.2% in a year.
Applied Industrial has an average trailing four-quarter earnings surprise of 8.2%. The Zacks Consensus Estimate for AIT's 2024 earnings is pinned at $9.62 per share, which indicates year-over-year growth of 9.9%. Estimates have moved north by 2% in the past 60 days. The company's shares have gained 8.8% in a year.
The Zacks Consensus Estimate for Cintas' 2024 earnings is pegged at $14.95 per share. The consensus estimate for 2024 earnings has been unchanged in the past 60 days. The company has a trailing four-quarter average earnings surprise of 4.3%. CTAS shares have gained 13.7% in a year.
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