Should Quality Investors Include NASDAQ:UFPT in Their Portfolio?

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

Looking into the quality metrics of UFP TECHNOLOGIES INC

• UFP TECHNOLOGIES INC has shown strong performance in revenue growth over the past 5 years, with a 16.0% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 28.73%, UFP TECHNOLOGIES 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.
• The Debt/Free Cash Flow Ratio of UFP TECHNOLOGIES INC stands at 1.04, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 83.37%, UFP TECHNOLOGIES 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 TECHNOLOGIES INC has been remarkable, with 22.92% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• UFP TECHNOLOGIES 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.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, UFPT scores 6 out of 10 in our fundamental rating. UFPT was compared to 196 industry peers in the Health Care Equipment & Supplies industry. UFPT gets an excellent profitability rating and is at the same time showing great financial health properties. UFPT has a correct valuation and a medium growth rate. With these ratings, UFPT could be worth investigating further for quality investing!.

Check the latest full fundamental report of UFPT for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.