HLMN

Hillman Solutions Corp

Industrial/Transportation


Presented:10/11/2022
Price:$7.28
Cap:$1.42B
Current Price:$10.73
Cap:$2.11B

Presented

Date10/11/2022
Price$7.28
Market Cap$1.42B
Ent Value$2.86B
P/E RatioN/A
Book Value$6.06
Div Yield0%
Shares O/S194.40M
Ave Daily Vol1,294,707
Short Int8.77%

Current

Price$10.73
Market Cap$2.11B
Hillman Solutions Corp. distributes hardware and home improvement products. Its products include fasteners and related hardware items, threaded rod and metal shapes, keys, key duplication systems, and accessories, builder’s hardware, personal protective equipment, such as gloves and eye-wear, and identification items, such as tags and letters, numbers, and signs. The firm sells its products to hardware stores, home centers, mass merchants, pet supply stores, and other retail outlets. The company was founded by Max W. Hillman, Sr. in 1964 and is headquartered in Cincinnati, OH.

Publicly traded companies mentioned herein: Hillman Solutions Corp (HLMN), Home Depot Inc/The (HD), Lowe's Cos Inc (LOW)

Highlights

The presenter is short shares of Hillman Solutions Corp (HLMN), a hardware distribution company selling primarily to big box retailers, mass merchandisers, and regional hardware stores. The stock trades at $7 per share with an EV of $2.34B including ~$900MM in net debt. Given the nature of the business and the stated multiple (20x 2022 consensus earnings), the market is pricing in meaningful organic growth, which he feels is unlikely due to the concentrated customer base and lack of pricing power. As HLMN misses on out year numbers, he sees downside to $4 - $5 per share.

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Idea Discussion

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