MIDD

Middleby Corp

Industrial/Transportation


Presented:06/01/2018
Price:$99.57
Cap:$5.53B
Current Price:$137.83
Cap:$7.41B

Presented

Date06/01/2018
Price$99.57
Market Cap$5.53B
Ent Value$7.83B
P/E Ratio19.18x
Book Value$25.86
Div Yield0%
Shares O/S55.57M
Ave Daily Vol748,756
Short Int6.87%

Current

Price$137.83
Market Cap$7.41B
Middleby Corp. engages in the design, manufacture, marketing, distribution and service of a broad line of foodservice equipment. It operates through the following segments: Commercial Foodservice Equipment Group, Food Processing Equipment Group, and Residential Kitchen Equipment Group. The Commercial Foodservice Equipment Group segment offers a foodservice equipment, which enables cooking and warming application within a commercial kitchen and foodservice operation. The Food Processing Equipment Group segment includes portfolio of processing solutions for customers producing pre-cooked meat products and bread. The Residential Kitchen Equipment Group segment manufactures, sells and distributes kitchen equipment such as cookers, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, wine coolers, ice machines, ventilation and outdoor equipment for the residential market. The company was founded in 1888 and is headquartered in Elgin, IL.

Publicly traded companies mentioned herein: Middleby Corp (MIDD), United Technologies Corp (UTX), Welbilt Inc (WBT)

Highlights

The presenter is long shares of Middleby (MIDD), seeing favorable secular trends from the food and restaurants industry that should drive demand and growth. MIDD shares saw recent weakness due to disruptions to its sales force that delayed orders last year, but the presenter views these issues as transient, and thus sees a good buying opportunity at current levels. He also sees MIDD continuing its transition into an efficient platform model and continuing to create value through capital allocation. He models $8.75 in 2020 EPS, translating to a $170 price target with a 19 – 20x multiple.

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Idea Discussion

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