WBT – Markets have expectations for Uniform ROA to fall significantly, but management is confident about net income, material costs, and their Crem business

• Welbilt, Inc. (WBT:USA) currently trades slightly below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 19.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about net income, material costs, and their Crem business
• Specifically, management is confident they will be able to ramp operations in their Crem business and that they will be able to meet their net income target for the year. Furthermore, they are confident that material costs and tariffs will represent a smaller annual headwind than previously expected.