PATRICK INDUSTRIES INC (PATK) Stock Fundamental Analysis
NASDAQ:PATK - Nasdaq - US7033431039 - Common Stock - Currency: USD
Taking everything into account, PATK scores 4 out of 10 in our fundamental rating. PATK was compared to 83 industry peers in the Automobile Components industry. While PATK is still in line with the averages on profitability rating, there are concerns on its financial health. PATK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PATK was profitable.
PATK had a positive operating cash flow in the past year.
Each year in the past 5 years PATK has been profitable.
PATK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PATK (4.58%) is worse than 61.45% of its industry peers.
PATK has a Return On Equity of 12.27%. This is amongst the best in the industry. PATK outperforms 90.36% of its industry peers.
The Return On Invested Capital of PATK (7.36%) is worse than 62.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PATK is in line with the industry average of 9.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 12.27% | ||
| ROIC | 7.36% |
ROA(3y)7.32%
ROA(5y)7.19%
ROE(3y)20.1%
ROE(5y)21.39%
ROIC(3y)10.59%
ROIC(5y)10.52%
1.3 Margins
Looking at the Profit Margin, with a value of 3.72%, PATK is doing worse than 62.65% of the companies in the same industry.
PATK's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 6.94%, PATK is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
PATK's Operating Margin has been stable in the last couple of years.
The Gross Margin of PATK (22.50%) is worse than 67.47% of its industry peers.
In the last couple of years the Gross Margin of PATK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | 3.72% | ||
| GM | 22.5% |
OM growth 3Y-6.97%
OM growth 5Y1%
PM growth 3Y-12.26%
PM growth 5Y-0.57%
GM growth 3Y4.62%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PATK is creating some value.
The number of shares outstanding for PATK has been increased compared to 1 year ago.
PATK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PATK has a worse debt to assets ratio.
2.2 Solvency
PATK has a debt to FCF ratio of 5.25. This is a neutral value as PATK would need 5.25 years to pay back of all of its debts.
PATK's Debt to FCF ratio of 5.25 is on the low side compared to the rest of the industry. PATK is outperformed by 65.06% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that PATK has dependencies on debt financing.
PATK has a worse Debt to Equity ratio (1.16) than 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC8.87%
2.3 Liquidity
A Current Ratio of 2.33 indicates that PATK has no problem at all paying its short term obligations.
PATK has a better Current ratio (2.33) than 78.31% of its industry peers.
PATK has a Quick Ratio of 2.33. This is a bad value and indicates that PATK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.77, PATK is doing worse than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
PATK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.50%.
PATK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
PATK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.14%.
PATK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.72% yearly.
EPS 1Y (TTM)-5.5%
EPS 3Y-13.74%
EPS 5Y9.87%
EPS Q2Q%-55.32%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y-3.05%
Revenue growth 5Y9.72%
Sales Q2Q%8.31%
3.2 Future
PATK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.37% yearly.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y29.82%
EPS Next 2Y24.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.49%
Revenue Next 2Y7.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.89, the valuation of PATK can be described as rather expensive.
Based on the Price/Earnings ratio, PATK is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PATK is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.86 indicates a correct valuation of PATK.
Based on the Price/Forward Earnings ratio, PATK is valued a bit more expensive than 63.86% of the companies in the same industry.
PATK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 16.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PATK indicates a slightly more expensive valuation: PATK is more expensive than 67.47% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PATK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.06 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
PATK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PATK's earnings are expected to grow with 24.37% in the coming years.
PEG (NY)0.73
PEG (5Y)2.22
EPS Next 2Y24.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PATK has a Yearly Dividend Yield of 1.72%.
PATK's Dividend Yield is slightly below the industry average, which is at 4.03.
PATK's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
PATK has paid a dividend for at least 10 years, which is a reliable track record.
As PATK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
DP0%
EPS Next 2Y24.37%
EPS Next 3YN/A
90.18
-2.82 (-3.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change51.16%
Ins Owners4.05%
Ins Owner Change-3.13%
Market Cap3.03B
Analysts78.75
Price Target106.18 (17.74%)
Short Float %7.7%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP0%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.65%
Min EPS beat(2)-19.79%
Max EPS beat(2)-3.51%
EPS beat(4)2
Avg EPS beat(4)-0.42%
Min EPS beat(4)-19.79%
Max EPS beat(4)18.09%
EPS beat(8)6
Avg EPS beat(8)3%
EPS beat(12)10
Avg EPS beat(12)13.57%
EPS beat(16)14
Avg EPS beat(16)18.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-3.49%
Max Revenue beat(2)1.71%
Revenue beat(4)3
Avg Revenue beat(4)2.44%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)8.99%
Revenue beat(8)5
Avg Revenue beat(8)1.38%
Revenue beat(12)8
Avg Revenue beat(12)3.1%
Revenue beat(16)12
Avg Revenue beat(16)5.25%
PT rev (1m)-0.52%
PT rev (3m)-32.22%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-53.58%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-35.26%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)-4.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 16.86 | ||
| P/S | 0.82 | ||
| P/FCF | 12.06 | ||
| P/OCF | 9.27 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.38 |
EPS(TTM)4.12
EY4.57%
EPS(NY)5.35
Fwd EY5.93%
FCF(TTM)7.47
FCFY8.29%
OCF(TTM)9.73
OCFY10.79%
SpS110.59
BVpS33.58
TBVpS-14.04
PEG (NY)0.73
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 12.27% | ||
| ROCE | 9.67% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 19% | ||
| OM | 6.94% | ||
| PM (TTM) | 3.72% | ||
| GM | 22.5% | ||
| FCFM | 6.76% |
ROA(3y)7.32%
ROA(5y)7.19%
ROE(3y)20.1%
ROE(5y)21.39%
ROIC(3y)10.59%
ROIC(5y)10.52%
ROICexc(3y)10.69%
ROICexc(5y)10.77%
ROICexgc(3y)25.32%
ROICexgc(5y)25.36%
ROCE(3y)13.92%
ROCE(5y)13.82%
ROICexcg growth 3Y-13.77%
ROICexcg growth 5Y-5.41%
ROICexc growth 3Y-16.43%
ROICexc growth 5Y-6.2%
OM growth 3Y-6.97%
OM growth 5Y1%
PM growth 3Y-12.26%
PM growth 5Y-0.57%
GM growth 3Y4.62%
GM growth 5Y4.45%
F-Score3
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 45.44% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | 181.47% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | N/A |
F-Score3
WACC8.87%
ROIC/WACC0.83
Cap/Depr(3y)49.11%
Cap/Depr(5y)50.59%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.65%
Profit Quality(3y)175.76%
Profit Quality(5y)148.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.5%
EPS 3Y-13.74%
EPS 5Y9.87%
EPS Q2Q%-55.32%
EPS Next Y29.82%
EPS Next 2Y24.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.14%
Revenue growth 3Y-3.05%
Revenue growth 5Y9.72%
Sales Q2Q%8.31%
Revenue Next Year6.49%
Revenue Next 2Y7.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.83%
EBIT growth 3Y-9.81%
EBIT growth 5Y10.81%
EBIT Next Year90.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.18%
FCF growth 3Y10.27%
FCF growth 5Y8.81%
OCF growth 1Y-20.02%
OCF growth 3Y9.04%
OCF growth 5Y11.18%