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  "documentTitle": "GCP Applied Technologies (GCP)",
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  "presentationDate": "2020-04-30 00:00:00",
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  "notes": "Uses a 2x2 layout of bar charts to contrast revenue decline with margin expansion.",
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      "text": "We believe recent improvements in SCC margins are unsustainable without fundamental operational changes.",
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      "text": "SCC Revenues Have Declined",
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      "text": "Operating Expense as % of Revenue",
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      "text": "While Adjusted EBIT margins within SCC seem to have improved over the past year, margin improvement at the expense of revenue growth is not a sustainable strategy.\nOver the past year, even as gross margins have improved, the Company’s operating expense as a percent of revenue has remained stagnant, suggesting fundamental operational efficiencies have not yet been addressed.",
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      "text": "Adjusted EBIT margin: 10%",
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      "text": "While Adjusted EBIT margins for the SCC segment seem to have improved over the last twelve months, improvements have been driven by a reduction in revenue from exiting unprofitable geographies.",
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      "kind": "source-note",
      "text": "Source: GCP's public filings. (1) Excludes Darex Packaging which was sold in July 2017 and Venezuela results, which GCP excludes from its adjusted financials because of Venezuela's currency devaluation.",
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      "text": "Recent Improvements in SCC’s Margins Have Not Been Driven by Fundamental Operational Improvements",
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