Hillman Solutions (HLMN), mcap=$1.6bn, price $7.81 vs $8.24

$HLMN pitch:
– Market leader across the fastening and hardware industry.
– Boring business, but one with a mid-to-high-teens ROIC and an incredible record of stable revenue growth through the cycle.
– Demand for HLMN products is tied to maintenance and repair/remodel activity – not to new housing.
– At 11x ’23 EBITDA trades below industry peers.
– Hillman came public via a SPAC over a year ago.

$HLMN valuation:
– Trades at 11x of 23Y EBITDA.
– Other industrial distributors – $ITW, $GWW, $FAST – are at 13-17x.
– At similar multiples would be $12-14.5 stock.

Exp. gain: +45%-76% to $12-$14.5/share.

Full HLMN write-up (free guest account required):

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