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Why quality investors should have a look at UFP INDUSTRIES INC (NASDAQ:UFPI).

By Mill Chart

Last update: Jan 4, 2024

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.

A Deep Dive into UFP INDUSTRIES INC's Quality Metrics.

  • Over the past 5 years, UFP INDUSTRIES INC has experienced impressive revenue growth, with 19.56% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • UFP INDUSTRIES INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 27.09% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 0.34, UFP INDUSTRIES INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • UFP INDUSTRIES INC demonstrates consistent Profit Quality over the past 5 years, with a strong 87.37%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • 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.

Fundamental analysis of NASDAQ:UFPI

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.

UFPI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making UFPI a very profitable company, without any liquidiy or solvency issues. UFPI is valued correctly, 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.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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