Quick Value #296 - Gibraltar Industries (ROCK)
Announced levered acquisition and shares fell 22% - did the market overreact on this one?
Today’s post:
Announced debt-financed acquisition at 12x EBITDA multiple equal to current market value of entire business
Balance sheet moves from net cash position to ~4x leverage at closing
Non-core asset sales + FCF + synergies expected to get leverage to 3x within 1 year and 2-2.5x within 2 years
Shares now trading at “levered” multiples = 11.8x trailing earnings and 8.9x pro-forma EBITDA
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Recent write-ups include:
11/27/25 — Reviewed New Aptiv (RemainCo) and Cyprium (SpinCo)
11/17/25 — Turnaround + management change at SWK ($)
11/10/25 — Dole fully deleveraged, cheap, kickstarting buybacks
10/27/25 — ONEOK is a cheap midstream energy co
10/20/25 — Net-net in oilfield services ($)
10/13/25 — Solstice spin off from Honeywell
10/06/25 — Divestitures and delevering at Leggett & Platt ($)
Now onto today’s post…