Living hand-to-mouth on their own output: the company is currently consuming what it makes as fast as it makes it
The model's full reasoning — Q3 2021 call → NOWe need to determine if management describes that what the company produces is being consumed as fast as it becomes available, i.e., no cushion, output goes straight out the door. Look for statements about inventory, backorders, supply, etc. From transcript: George LeMaitre mentions "back orders are way down right now based on the CE being solved." Also mentions "we have got a lot of inventory on hand, that's our MO typically." J.J. Pellegrino says "we have got a lot of inventory on hand" and "it's all geared towards this being a no backorder company." That suggests they maintain inventory to avoid backorders, not that they have no cushion. They also mention "back orders" but that was due to CE issues, not demand consuming everything. They don't say they can't build stock because demand takes it. They say they have inventory on hand. So no indication of output being consumed as fast as it becomes available. They have inventory. So answer NO. Also note they mention "back orders" but that was due to CE issues, not demand consuming everything. They don't say they can't build stock because demand takes it. They say they have inventory on hand. So no indication of output being consumed as fast as it becomes available. They have inventory. So answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| BRBR | BellRing Brands, Inc. | Q4 2023 | 2023-11-21 | B+ |
| PRPH | ProPhase Labs, Inc. | Q1 2023 | 2023-05-11 | F |
| TACT | TransAct Technologies Incorporated | Q4 2022 | 2023-03-08 | A |
| PI | Impinj, Inc. | Q4 2022 | 2023-02-08 | B+ |
| JBHT | J.B. Hunt Transport Services, Inc. | Q2 2022 | 2022-07-19 | C+ |
| FLUX | Flux Power Holdings, Inc. | Q2 2022 | 2022-02-10 | D |
| VVV | Valvoline Inc. | Q1 2022 | 2022-02-09 | C+ |
| GTES | Gates Industrial Corporation plc | Q4 2021 | 2022-02-07 | C+ |
| EXP | Eagle Materials Inc. | Q3 2022 | 2022-01-27 | B |
| GFS | GLOBALFOUNDRIES Inc. | Q3 2021 | 2021-11-30 | A |
| SXC | SunCoke Energy, Inc. | Q3 2021 | 2021-11-01 | A |
| LOPE | Grand Canyon Education, Inc. | Q2 2021 | 2021-08-08 | C |
| WES | Western Midstream Partners, LP | Q3 2018 | 2018-10-31 | D |
| IRT | Independence Realty Trust, Inc. | Q2 2018 | 2018-08-02 | B |
| SATS | EchoStar Corporation | Q1 2018 | 2018-05-10 | C+ |
| RACE | Ferrari N.V. | Q3 2017 | 2017-11-02 | C+ |
| PLAB | Photronics, Inc. | Q2 2017 | 2017-05-17 | C+ |
BRBR · Q4 2023 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? That is, operating without meaningful cushion, output moves stra...
PRPH · Q1 2023 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? That is, operating without meaningful cushion, output moves stra...
TACT · Q4 2022 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? Operating without meaningful cushion, output moves straight out ...