Industrials
TRG has long stated that JELD does not have a sales problem but a cost problem. Years of mismanagement has created a huge internal investment and operational improvement opportunity, this sets up a compelling opportunity for investors. JELD sells at ~6x FY24 EBITDA guidance, which TRG believes is a low multiple on the low point of EBITDA. At this moment, Europe EBITDA virtually offsets corporate expenses. Valuing JELD on its North America segment alone on future EBITDA of $441-466m (using a conservative assumption that in 2-3 years the housing market has improved and sales rise 10-13% at a margin of 13.5-13.9%) could yield substantial upside in the stock price.
Edition: 191
- 26 July, 2024