The Analyst Hub

Zep: A Small Cap Cleaning Company You Should Keep On Your Radar?

Understanding the Business

Zep Inc. (NYSE:ZEP) is a cleaning and maintenance chemicals provider. Under its umbrella, it has different brands of maintenance related products and services. The products include cleaners, degreasers, sanitizers, deodorizers, air-care products and other pest-weed control products. It has positioned itself in the niche industrial and institutional buyer segment, where it doesn't have to compete with large consumer goods players like P&G or Ecolab. It is competing with small mom and pop stores and gaining market share from them. The company has grown significantly by acquisitions in last 3-4 years, but now it is now rationalizing by divesting/discontinuing some low profit, non-core business lines to improve its margins. Once, this rationalization is complete, the company...

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