Beacon Roofing Supply Co., Ltd. (BECN – Free report) It’s a recent rally. The company has successfully won strategic initiatives and executed technology initiatives in a growing e-commerce platform.
In this note, this largest publicly traded distributor of roofing materials recently announced a partnership with SumoQuote. It’s a fast way to digitally and accurately create custom quotes. Under the deal, SumoQuote’s technology will be integrated with Beacon’s e-commerce platform, his Beacon PRO+, providing a streamlined process for creating custom quotes. This helps contractors save time, manage their work more efficiently, and enhance their business.
Beacon Chief Commercial Officer Jonathan Bennett said:
Strategic Initiatives and Technology Investments: Benefits
Beacon is committed to several strategic initiatives to advance its long-term goals of growing and enhancing the customer experience, increasing sales and profit margins, and increasing value for its customers, suppliers, employees and shareholders. I started.
In February 2022, the company announced its Ambition 2025 goals. This goal emphasizes a winning culture, operational excellence, a growth trajectory that outperforms the market, and accelerated shareholder value creation. Net Sales of $9.0 Billion at 8% CAGR, Adjusted EBITDA of $1.0 Billion at 10% CAGR, Significant Cash Flow Generation, Net Leverage of 2.5x Target Adjusted EBITDA in 2025 ($2.8 Billion of Investment reserve capacity). We strategically fund mergers and acquisitions, growth investments and share buybacks to generate superior returns.
Beacon remains focused on four key strategic initiatives – organic growth, digital, OTC (on-time and complete), and branch sales performance – that will drive sales and improve operating margins. It’s helpful. The company focuses on improving outdoor and indoor branch sales and operational performance, aiming to expand the scope and scale of its operations to improve the overall customer experience. With this strategic move, the company’s customers could benefit from the best-in-industry e-commerce platform, his new OTC delivery network, and a newly designed website. The company’s OTC strategy leverages the density of its branch network, allowing it to serve its customers more effectively and efficiently.
Image Source: Sachs Investment Research
Beacon’s stock is up 2.8% so far this year, compared with an industry-wide decline of 27.4%. Apart from the above factors, BECN is focusing on business expansion moves and cost containment strategies.
Beacon recently opened several greenfield locations in Texas. This will enable us to serve both residential and non-residential customers in the Bryan-College Station and Sherman-Denison markets. These branches carry leading brands of roofing and complementary products, including TRI-BUILT. Contractors in these markets have instant access to Beacon PRO+ to manage their business online. The company plans to open about 15 facilities this year to support Ambition 2025.
Zack Rank & Key Pick
Beacon currently holds Zacks Rank #3 (Hold).you can see Here is the complete list of today’s #1 (strong buy) Zachs stocks..
Zacks’ top-ranked stocks in the retail and wholesale sector are: Yum China Holdings (YUMC – free report), Moyashi Farmers Market Co., Ltd. (SFM – free report) and Wendy’s Company (Wen – free report).
dim sum Zack rank #1 sports. Yum China achieves his 10% revenue growth in the long term.
Yum China’s Zacks consensus forecasts for 2023 sales and earnings per share (EPS) suggest growth of 19.9% and 86.8%, respectively, from the levels of the same period last year.
Sprout Farmers Market I have Zack Rank #2 (Buy). The company expects an average of 15.6% in the fourth quarter.
Zacks Consensus forecasts for 2023 sales and EPS for the Sprout Farmers Market suggest growth of 5.9% and 7.9%, respectively, from the levels of the same period last year.
Wendy’s Zack Rank 2nd. The company’s fourth-quarter earnings forecast averages him 3.9%.
Wendy’s’ 2022 sales and Sachs consensus forecasts for EPS suggest growth of 10.4% and 3.7%, respectively, from the levels of the same period last year.
