Brandon Dietz

Equity Analyst and Investor. Hunting for exceptional businesses. In-depth research available at

[Brandon Dietz @EquiCompound]

I’m a big fan of scaled wholesale distributors, like $POOL, $SITE & $FERG

One that very few have heard of is Richelieu Hardware $RCH.CN, which is the subject of my latest research piece

A free, in depth analysis of $RCH.CN is available over at EquiCompound (link in bio)

[Sahil Khetpal @skhetpal]

TIKR is hiring! We're looking for someone to lead our content efforts for our growing community of 300,000+ investors.

I'll work closely with you and we'll nerd out on all things investing / finance!

More about the opportunity below.

(Appreciate any likes/RT for visibility)

[Eric Finnigan @EricFinnigan]

Good news from professional remodelers:

Professional remodeling project completions picked up to +2% YOY in 4Q23 after a flat 3Q23.

Most remodelers now expect a stronger 2024. They see lower rates, better product availability, and more homeowners remodeling instead of moving.

[Brandon Dietz @EquiCompound]

Nice slide from fiber cement siding powerhouse $JHX summarizing key estimates sourced from external data providers on CY'24 industry growth for US new construction and repair & remodel

[Brandon Dietz @EquiCompound]

Source - $RBLX Investor Day

[Brandon Dietz @EquiCompound]

$RBLX developer economics are rapidly improving with scale

These developer payout figures might surprise you…

- Top 10 – avg ~$27mln/yr (+1.5x vs. 2020)
- 100th Largest – makes ~$1mln/yr (+2.2x vs. 2020)
- 1000th Largest – makes ~$65k/yr (+4.5x vs. 2020)

[Brandon Dietz @EquiCompound]

@Lennart54613183 should be good scope for a recovery in organic growth later in 2024 - honestly their organic growth has held up much better than other adjacent players in the home improvement/R&R space, despite a weakening backdrop

[Brandon Dietz @EquiCompound]

$SITE continues to consolidate a still highly fragmented landscape distribution vertical…

A surge in M&A in August, including a large ~35 branch deal, combined with today’s acquisition of Newsom Seed, puts $SITE at 11 deals YTD with a record ~$310mln in estimated acquired sales

[Brandon Dietz @EquiCompound]

All in, a key component of my investment thesis on $SITE is M&A

With 2023 YTD acquired sales at a record, numerous textbook deals, and the large acquisition of Pioneer in August, $SITE continues to execute strongly on M&A and my investment thesis remains fully intact

[Brandon Dietz @EquiCompound]

Branch proximity is also exceptional, with strong scope for branch consolidation…

- $SITE's Gaithersburg branch is ~0.1mi from Newsom's

- $SITE's Burtonsville branch is ~3.0mi from Newsom’s in Fulton

[Brandon Dietz @EquiCompound]

Source...

Data is via John Burns @JBREC & Qualified Remodeler's Q3 US Remodeler Index Report

Highly recommend those interested check this out - full PDF is available at Qualified Remodeler - many other interesting insights and available for free

[Brandon Dietz @EquiCompound]

Surprising given the very substantial slowing in remodeling project completions so far this year, which have yet to see a growth inflection...

[Brandon Dietz @EquiCompound]

Even with widespread deceleration in home improvement & remodeling demand, pro contractors across the space actually expect better topline growth in 2024 vs. 2023…

Via @JBREC – pro-outlook is for +2.5-4.3% growth in 2024 vs. 2023 growth of +0.5%-2.5%

$FND

[Brandon Dietz @EquiCompound]

@LDiscernment Nice @LDiscernment, I'll definitely plan on checking out your $SSD writeup, looks like a good one!

[Brandon Dietz @EquiCompound]

Building products player Simpson Manufacturing $SSD has an impressive ~75% US market share position in wood connectors…

[Brandon Dietz @EquiCompound]

@DeepSailCapital Also, I’d add $BDI.CN, if you like names like $WSC and $MGRC you’ll love $BDI.CN

[Brandon Dietz @EquiCompound]

@DeepSailCapital I’d add $SITE and $RCH.CN to the list. Also, a bit early stage but $CMG.CN has shifted to a potential serial M&A model, has two CSU execs on the board and new, highly motivated CEO

[Brandon Dietz @EquiCompound]

Zooming out – while global share is a bit lower – $SSD also has ~54% share in wood connectors across North America, Europe, and the Pacific Rim