Beacon (BECN) Acquires Garvin, Fortifies Ambition 2025 Goals
Beacon Roofing Supply, Inc. BECN solidifies its position as a national leader in specialty waterproofing with the acquisition of Garvin Construction Products. Based in Medford, MA, this waterproofing distributor operates across North Haven, CT, Beltsville, MD, Carlstadt, NJ, and Long Island City, NY.
Garvin's customer focus and technical expertise aligns with BECN's values and mission. In today's construction landscape, resilience solutions are crucial for new projects and renovations. BECN, with its extensive range of products for roofs, building exteriors, and below-grade applications, is well-positioned to support contractors nationwide.
This move will enable Garvin, a family-built business, to contribute to Beacon's Ambition 2025 initiative.
Focus on Strategic Initiatives
Shares of Beacon have strongly outperformed the Zacks Building Products - Retail industry in the past year. BECN gained 27.5% in the period compared with the industry’s 6.9% rally. Beacon remains focused on four key strategic initiatives — organic growth, digital, OTC (On-Time and Complete) and branch operating performance — that have been boosting sales and helping improve operating profitability.
Image Source: Zacks Investment Research
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience, expanding top line and margin and boosting value for customers, suppliers, employees and shareholders.
The company has been focusing on its Ambition 2025 targets (announced on Feb 24, 2022), emphasizing operational excellence, an above-market growth trajectory and accelerated stockholder value creation. The financial targets of Ambition 2025 assume $9 billion in sales (8% CAGR) and $1 billion in EBITDA (10% CAGR), which would translate into an 11% EBITDA margin (up 100 basis points from 2021).
Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures as part of this initiative. In 2023, Beacon completed eight acquisitions and opened 16 new greenfield locations to date in 2023. Since the plan's launch, BECN has added over 70 new locations, enhancing services for Beacon customers.
The company plans to invest more in business expansion to yield 20-25 new greenfield locations in 2023.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
Abercrombie & Fitch Co. ANF flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 724.8%, on average. Shares of ANF have surged 253.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s 2023 sales and earnings per share (EPS) implies increases of 10% and 1,644%, respectively, from the year-ago period’s levels.
Arcos Dorados Holdings Inc. ARCO currently carries a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 35%, on average. The stock has gained 16.7% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests a rise of 19.2% and 13%, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. CMG sports a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 4.8%, on average. Shares of CMG have gained 20.9% in the past year.
The Zacks Consensus Estimate for CMG’s 2023 sales and EPS indicates a 13.6% and a 31.8% growth, respectively, from the year-ago period’s levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
