Howie Man
Long/short equity

John B. Sanfilippo: Transformed CPG Company With Large Upside

Thesis

John B Sanfilippo & Son (NASDAQ:JBSS) is a growing consumer packaged goods company trading at a significant discount - 6.5x EV/EBITDA and 7.5x EBITDA-capex. This opportunity exists due to a lack of appreciation for the recent restructurings that have transformed the business from a low margin processor with high commodity price exposure to a high return, branded CPG company with stable earnings. A lack of institutional coverage and limited management promotion also contribute to the price-value disconnect. JBSS is the third largest US packaged nut company and has the #1 market position in consumer baked nuts. JBSS is a growing, non-cyclical business that offers +75% upside with some near-term catalysts. At a point when very few deep...

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