This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is SiteOne Landscape Supply (SITE) stock a good buy?
- SiteOne Landscape Supply Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is SiteOne Landscape Supply (SITE) stock a good buy?
1. SiteOne Landscape Supply Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded: Originally part of John Deere Landscapes, rebranded as SiteOne Landscape Supply in 2015
- Inspiration: Created to consolidate landscape supply services under a single brand
- Launch: Rebranded with a focus on providing a comprehensive range of landscape supplies and services
- Growth: Rapidly expanded through strategic acquisitions and organic growth
- Milestone: Went public in 2016, listed on NYSE under SITE
- Innovations: Implemented a robust e-commerce platform and enhanced product offerings
- Acquisitions: Acquired numerous companies to broaden product range and geographic reach, including Evergreen Partners (2015) and Empire Supplies (2020)
- Rebranding: Focused on creating a strong, unified brand identity in the landscape supply industry
- Current Reach: Largest wholesale distributor of landscape supplies in North America, serving thousands of customers
- Impact: Revolutionized the landscape supply market by offering a one-stop shop for landscaping professionals and enhancing service delivery through innovation and strategic growt
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 72/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how SiteOne Landscape Supply (SITE) makes money:
- Product Sales: Generates revenue from the sale of landscape supplies including plants, irrigation systems, fertilizers, and hardscape materials.
- Equipment Rentals: Offers rental services for landscaping equipment such as machinery and tools.
- Consulting Services: Provides professional advice and consulting services to landscapers and contractors for a fee.
- Delivery Services: Earns income from delivering landscape supplies directly to customer locations.
- Training Programs: Offers training programs and workshops for landscapers and contractors, charging a fee for participation.
- Maintenance Services: Provides ongoing maintenance services for landscapes and gardens, generating recurring revenue.
- Online Sales: Sells products through an e-commerce platform, expanding its reach and customer base.
- Specialty Services: Offers specialized services such as landscape design and installation, generating additional revenue streams.
SiteOne Landscape Supply uses these various streams to maximize their earnings and provide diverse services to moviegoers.
Here are a few of the other companies that SiteOne Landscape Supply has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- American Builders Supply
- Evergreen Partners
- Empire Supplies
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how SiteOne Landscape Supply (SITE)stacks up against other companies.
- Applied Industrial Technologies, Inc.(AIT) – 84
- W.W. Grainger, Inc.(GWW) – 83
- SiteOne Landscape Supply, Inc.(SITE) – 72
- WESCO International, Inc.(WCC-PA) – 72
- Global Industrial Company.(GIC) – 72
- MSC Industrial Direct Co., Inc.(MSM) – 61
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Strategic Acquisitions:Doug Black Led SiteOne’s strategic acquisitions of companies like American Builders Supply and Evergreen Partners, expanding the company’s product offerings and geographic reach.
- Market Expansion: Oversaw the expansion of SiteOne’s footprint across North America, increasing the company’s presence and market share in the landscape supply sector.
- Operational Excellence: Implemented operational efficiencies and best practices across SiteOne’s distribution network, improving customer service and supply chain management.
- Product Diversification: Diversified SiteOne’s product portfolio to include a wide range of landscape supplies, irrigation products, and outdoor lighting solutions, meeting the diverse needs of landscaping professionals.
- Customer Focus: Enhanced SiteOne’s customer service initiatives and sales support, strengthening relationships with landscapers, contractors, and other customers.
- Financial Performance: Achieved consistent revenue growth and profitability, enhancing shareholder value and positioning SiteOne as a leader in the landscape supply industry.
Doug Black’s leadership at SiteOne Landscape Supply has been instrumental in driving strategic growth initiatives, operational excellence, and customer satisfaction, contributing to the company’s success and market leadership.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of SiteOne Landscape Supply (SITE) is 69/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is SiteOne Landscape Supply (SITE) stock a good buy?
Some of the top questions investors can have is SiteOne Landscape Supply (SITE) stock a good buy or should I buy SiteOne Landscape Supply (SITE) stock?
SiteOne Landscape Supply offers a promising investment in the landscaping industry. As the leading wholesale distributor of landscape materials in North America, it benefits from consistent demand for its products and services. The company’s wide range of offerings, including plants, irrigation systems, and hardscape materials, serves professional landscapers and contractors, ensuring multiple revenue sources. SiteOne’s success is driven by strategic acquisitions, a strong distribution network, and a focus on excellent customer service. However, investors should consider the effects of seasonal changes and economic factors on the landscaping market. Overall, SiteOne’s strong market position, strategic expansion, and dedication to customer satisfaction make it an attractive investment in the outdoor living and landscape supply sector.
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To truly know if SiteOne Landscape Supply (SITE) is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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