Is UFP INDUSTRIES INC (NASDAQ:UFPI) suited for quality investing?

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 9.96% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of UFP INDUSTRIES INC stands at 22.58%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 0.41, 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.
• With a favorable Profit Quality (5-year) ratio of 116.0%, 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.
• The 5-year EBIT growth of UFP INDUSTRIES INC has been remarkable, with 26.36% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• UFP INDUSTRIES INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:UFPI?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to UFPI. UFPI was compared to 40 industry peers in the Building Products industry. While UFPI has a great health rating, its profitability is only average at the moment. UFPI has a correct valuation and a medium growth rate.

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 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.