Yahoo Finance Beacon (BECN) Buys General Siding Supply, Boosts Presence
Beacon Roofing Supply, Inc. BECN acquired Omaha, NE-based building supplier — General Siding Supply.
Over the past five decades, General Siding has been providing building supplies like siding, windows, and doors to Midwest contractors. Along with Omaha, it has branches in Lincoln and Grand Island as well as in Sioux City, IA and West Fargo, ND.
With this acquisition, BECN expands its complementary building product offering and branch locations in key markets.
Image Source: Zacks Investment Research
Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — surged 10.6% compared with the Building Products - Retail industry’s 0.3% growth so far this year.
Strategic Efforts to Boost Sales in the Future
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience. One of the primary initiatives includes footprint expansion and increasing its market reach. Beacon is targeting business expansion through bolt-on acquisitions, divestitures and new branch openings.
The company has been focusing on its Ambition 2025 targets (announced on Feb 24, 2022), which emphasize operational excellence, an above-market growth trajectory and accelerated stockholder value creation. The financial targets of Ambition 2025 assume that sales will reach $9 billion (8% CAGR) and $1 billion of EBITDA (10% CAGR), which would translate into an 11% EBITDA margin (up 100 basis points from 2021). Impressively, the company exceeded its Ambition 2025 revenue and shareholder return targets for 2023. BECN continues to achieve its further Ambition 2025 growth targets.
Since the announcement of the Ambition 2025 strategic plan, Beacon acquired 16 companies, which added 50 branches to its portfolio until 2023. The company expanded its footprint by completing three acquisitions, adding 12 branches and inked a deal to buy Denver, CO-based Smalley & Company so far in 2024. Also, it opened five new locations this year.
A solid residential backdrop, exceptional operating cost management and cash flow, a focus on the e-commerce platform, a new On-Time and Complete Delivery Network and a newly designed website are likely to help BECN gain further.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Abercrombie & Fitch Co. ANF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ANF has a trailing four-quarter earnings surprise of 715.6%, on average. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) suggests growth of 5.6% and 19.1%, respectively, from the year-ago period’s levels.
Burlington Stores, Inc. BURL currently sports a Zacks Rank of 1. BURL has a trailing four-quarter earnings surprise of 10.1%, on average.
The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a 10.2% and 22.3% rise, respectively, from the year-ago period’s levels.
The Gap, Inc. GPS currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS suggests a decline of 0.3% and 4.9%, respectively, from the year-ago period’s levels.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
