Reasonable Growth, Debt Levels, and a High ROIC Make UFP INDUSTRIES INC (NASDAQ:UFPI) Appealing to Quality Investors.

In this article we will dive into UFP INDUSTRIES INC (NASDAQ:UFPI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed UFP INDUSTRIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• UFP INDUSTRIES INC has achieved substantial revenue growth over the past 5 years, with a 19.56% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 27.53%, UFP INDUSTRIES INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 0.34, UFP INDUSTRIES INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• The Profit Quality (5-year) of UFP INDUSTRIES INC stands at 87.37%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• UFP INDUSTRIES INC has consistently achieved strong EBIT growth over the past 5 years, with a 39.39% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of UFP INDUSTRIES INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NASDAQ:UFPI

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to UFPI. UFPI was compared to 44 industry peers in the Building Products industry. UFPI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. UFPI has a valuation in line with the averages, but it does not seem to be growing.

Our latest full fundamental report of UFPI contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.