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Why UFP INDUSTRIES INC (NASDAQ:UFPI) should be investigated by quality investors.

By Mill Chart

Last update: Dec 11, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if UFP INDUSTRIES INC (NASDAQ:UFPI) is suited for quality investing. Investors should of course do their own research, but we spotted UFP INDUSTRIES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of UFP INDUSTRIES INC

  • UFP INDUSTRIES INC has demonstrated significant revenue growth over the past 5 years, with a 19.56% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 27.09%, 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.
  • UFP INDUSTRIES INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.34, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a favorable Profit Quality (5-year) ratio of 87.37%, UFP INDUSTRIES INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • 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.
  • UFP INDUSTRIES INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NASDAQ:UFPI telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall UFPI gets a fundamental rating of 6 out of 10. We evaluated UFPI against 44 industry peers in the Building Products industry. UFPI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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 quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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