WBT

Welbilt Inc

Industrial/Transportation


Presented:01/29/2019
Price:$13.70
Cap:$1.92B
Current Price:$24.01
Cap:$3.39B

Presented

Date01/29/2019
Price$13.70
Market Cap$1.92B
Ent Value$4.25B
P/E Ratio16.42x
Book Value$1.18
Div Yield0%
Shares O/S140.22M
Ave Daily Vol1,708,656
Short Int7.47%

Current

Price$24.01
Market Cap$3.39B
Welbilt, Inc. operates as a commercial foodservice equipment company. It designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market. It operates through following segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment is made up of markets in Europe, including Russia and the Commonwealth of Independent States, Middle East and Africa. The APAC segment is comprised of markets in China, Australia, Japan, Philippines, South Korea, Singapore, Indonesia, Taiwan, Hong Kong, Thailand, Malaysia, and New Zealand. The company was founded on July 20, 2015 and is headquartered in New Port Richey, FL.

Publicly traded companies mentioned herein: Berkshire Hathaway Inc (BRK/B; BRK/A), Chart Industries Inc (GTLS), Dover Corp (DOV), Illinois Tool Works Inc (ITW), Ingersoll-Rand PLC (IR), Manitowoc Company Inc (MTW), Middleby Corporation (MIDD), Welbilt Inc (WBT)

Highlights

Shares of Welbilt (WBT), which was spun-off from Manitowoc in March 2016, have fallen from ~$23 (July 2018) to the low teens for reasons the presenter believes to be transitory. The stock recently fell below its spin-off price, and on an EV basis the company’s value is below where it was taken private in 2008. In the presenter’s opinion, the recent weakness is a buying opportunity, as new CEO Bill Johnson has an excellent background, and fundamentally there is still a margin improvement opportunity. He believes there is upside potential back to the low $20s on valuation, with optionality around the company becoming an acquisition target. As such, patient shareholders could see a 50% - 80% gain over the next 12 - 24 months.

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Idea Discussion

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