One-Page Stock Pitch: SP Plus
Parking management operator expanding market share amid a parking space shortage
Welcome to the One-Page Stock Pitch, where I share an under 500-word round-up of an investment thesis and its risks. Today’s pitch is on SP Plus (NASDAQ: SP), a leading parking garage manager in metro areas and airports. A short audio recording providing some additional details is attached for those interested, as is a download file of the pitch for mobile users who may find that easier to read.
A quick disclaimer not in the audio: about 49% of revenue is reimbursements for purchasing insurance in bulk for its clients to get them to lower costs. This artificially deflates the company’s margins on most stock screens and makes metrics such as gross and operating profit more critical to tracking the company’s long-term viability.
The Pitch
Download
Disclaimer: I hold no position in SP Plus at the time of writing