Professional
Added to YB: 2025-02-06
Pitch date: 2025-02-06
QEPC [bullish]
Q.E.P. Co., Inc.
-22.36%
current return
Author Info
Founder of Smoak Capital who shares analysis on stocks on Twitter and in his fund letter. Follow on Twitter.
Company Info
Q.E.P. Co., Inc., together with its subsidiaries, designs, manufactures, and distributes flooring installation solutions for commercial and home improvement projects in the United States and internationally.
Market Cap
$123.3M
Pitch Price
$46.28
Price Target
80.00 (+123%)
Dividend
2.11%
EV/EBITDA
4.26
P/E
7.77
EV/Sales
0.47
Sector
Household Durables
Category
special_situation
Smoak Capital Portfolio Holding: Q.E.P. Co., Inc.
QEPC: Flooring tool maker divested underperforming ops, net cash +$60M. Op margins up 3% to 10%+. 2/3 rev from 40yr Home Depot partnership. Industry M&A at 12-13x EV/EBITDA. At $42.50, trades 4.5x EV/25eEBIT. PT $67-80 (60-90% upside). New mgmt, capital return focus. Risks: customer concentration, acquisition history.
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