Materials
SRC was one of the stocks highlighted at MYST’s Top Post-Election Ideas Forum - Trump’s victory is expected to accelerate a potential resolution of the war in Ukraine and the recent closure of SRC’s acquisition of CRH’s Polish lime operations positions the company as a “stealth beneficiary” of reconstruction efforts. The stock trades at just ~5x FY25 EBITDA with a ~13% FCF Yield, a substantial discount to US peers including Martin Marietta, Vulcan Materials and Summit Materials. Notably, SRC's closest comp by size, US Lime & Minerals, trades at ~28x EBITDA. Presenter’s 2-year TP is £1.54 (95% upside), but he sees potential for a 3-to-4-bagger over time.
Edition: 200
- 29 November, 2024
Positive results from TRG's Q3 Contractor & Surety survey
2H22 and 2023 will be a strong period for non-res construction and maintenance spending activity - backlogs / pipelines are sizable and increasing at a solid rate (and comes before the infrastructure bill which has yet to hit the ground in a material way). In keeping with trends over the past 18 months, data centres, warehouses and healthcare are very strong. Although labour and material challenges remain, TRG expects bullish results from several stocks including WillScot Mobile Mini, Herc, Vulcan Materials and Beacon Roofing.
Edition: 146
- 14 October, 2022
2Q22 Heavy Materials survey
TRG’s survey focuses on aggregate, concrete, asphalt and cement volume and pricing trends throughout the quarter. During this survey season, they have been particularly focused on the relative changes in momentum, especially for the residential end market. Pricing is going through while volumes and margins are a mixed bag. TRG’s 25-page report also includes earnings previews and estimate changes for Arcosa, Atlas Technical Consultants, Eagle Materials, Martin Marietta Materials, Summit Materials and Vulcan Materials.
Edition: 139
- 08 July, 2022
Lithium demand to double inside a decade
We will see lithium demand soar with the only headwind being the temporary semi-conductor shortages. Don’t worry about near-term recycling or alternative graphene/solid-state batteries affecting demand; the former is un-economical, and the latter is far away from development. We will see the vast majority of capacity increases originate from existing producers - Orocobre Ltd, Galaxy Resources Ltd and Sociedad Quimica y Minera are Strong Buys. For unconventional suppliers with potential strong returns, look towards e3 Metals Corp or Vulcan Energy.
Edition: 110
- 14 May, 2021