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In line with its Ambition 2025 investment strategy, Beacon Roofing Supply, Inc. (BECN - Free Report) unveiled a greenfield location in Augusta, GA. This opening will expand services to customers in the greater Augusta market, including adjacent counties in South Carolina.
Pertaining to the opening, Brian Gibson, Beacon’s regional vice president, South Atlantic, said, “The branch is stocked with leading brands of roofing and complementary products, including Beacon’s own TRI-BUILT products.”
Notably, BECN has opened 13 greenfield branches in the state. The new greenfield openings, along with the two tuck-in acquisitions announced recently, will help BECN in 2023.
Image Source: Zacks Investment Research
Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — have outperformed the industry in the past year.
Strategic Efforts: a Boon
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing the customer experience, expanding the top line and margin and boosting value for customers, suppliers, employees, and shareholders.
In February 2022, the company unveiled the Ambition 2025 targets, which emphasize its winning culture, operational excellence, above-market growth trajectory and accelerated stockholder value creation. It projects net sales of $9 billion at a CAGR of 8%, adjusted EBITDA of $1 billion at a CAGR of 10%, significant cash flow generation, net leverage of 2.5 times targeted 2025 adjusted EBITDA (resulting in $2.8 billion of investment capacity), and strategic deployment of capital on mergers & acquisitions, growth investments and share repurchases to produce superior returns.
In addition, the company’s board changed its fiscal year-end from Sep 30 to Dec 31 (effective Jan 1, 2022) for the year ending Dec 31, 2022. The change is anticipated to be extremely beneficial since it will promote internal efficiencies and better external comparability.
A solid residential backdrop, exceptional operating cost management and cash flow, a focus on the e-commerce platform, a new OTC (On-Time and Complete) Delivery Network, and a newly designed website will drive growth.
Tecnoglass currently sports a Zacks Rank #1. Shares of the company have gained 35.3% in the past year.
The Zacks Consensus Estimate for TGLS’ 2023 sales and EPS suggests growth of 11.5% and 9%, respectively, from the year-ago period’s levels.
Wingstop carries a Zacks Rank #2 (Buy). Shares of WING have decreased 11.9% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.4% and 16.3%, respectively, from the comparable year-ago period’s levels.
Darden carries a Zacks Rank #2. Shares of DRI have gained 2.1% in the past year.
The Zacks Consensus Estimate for Darden’s fiscal 2023 sales and EPS suggests growth of 7.9% and 5.5%, respectively, from the corresponding year-ago period’s levels.
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Beacon (BECN) Opens Greenfield Branch, Fortifies Ambition 2025
In line with its Ambition 2025 investment strategy, Beacon Roofing Supply, Inc. (BECN - Free Report) unveiled a greenfield location in Augusta, GA. This opening will expand services to customers in the greater Augusta market, including adjacent counties in South Carolina.
Pertaining to the opening, Brian Gibson, Beacon’s regional vice president, South Atlantic, said, “The branch is stocked with leading brands of roofing and complementary products, including Beacon’s own TRI-BUILT products.”
Notably, BECN has opened 13 greenfield branches in the state. The new greenfield openings, along with the two tuck-in acquisitions announced recently, will help BECN in 2023.
Image Source: Zacks Investment Research
Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — have outperformed the industry in the past year.
Strategic Efforts: a Boon
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing the customer experience, expanding the top line and margin and boosting value for customers, suppliers, employees, and shareholders.
In February 2022, the company unveiled the Ambition 2025 targets, which emphasize its winning culture, operational excellence, above-market growth trajectory and accelerated stockholder value creation. It projects net sales of $9 billion at a CAGR of 8%, adjusted EBITDA of $1 billion at a CAGR of 10%, significant cash flow generation, net leverage of 2.5 times targeted 2025 adjusted EBITDA (resulting in $2.8 billion of investment capacity), and strategic deployment of capital on mergers & acquisitions, growth investments and share repurchases to produce superior returns.
In addition, the company’s board changed its fiscal year-end from Sep 30 to Dec 31 (effective Jan 1, 2022) for the year ending Dec 31, 2022. The change is anticipated to be extremely beneficial since it will promote internal efficiencies and better external comparability.
A solid residential backdrop, exceptional operating cost management and cash flow, a focus on the e-commerce platform, a new OTC (On-Time and Complete) Delivery Network, and a newly designed website will drive growth.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Tecnoglass Inc. (TGLS - Free Report) , Wingstop Inc. (WING - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) .
Tecnoglass currently sports a Zacks Rank #1. Shares of the company have gained 35.3% in the past year.
The Zacks Consensus Estimate for TGLS’ 2023 sales and EPS suggests growth of 11.5% and 9%, respectively, from the year-ago period’s levels.
Wingstop carries a Zacks Rank #2 (Buy). Shares of WING have decreased 11.9% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.4% and 16.3%, respectively, from the comparable year-ago period’s levels.
Darden carries a Zacks Rank #2. Shares of DRI have gained 2.1% in the past year.
The Zacks Consensus Estimate for Darden’s fiscal 2023 sales and EPS suggests growth of 7.9% and 5.5%, respectively, from the corresponding year-ago period’s levels.