UFP INDUSTRIES INC (UFPI) Stock Fundamental Analysis
NASDAQ:UFPI - Nasdaq - US90278Q1085 - Common Stock - Currency: USD
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.
1. Profitability
1.1 Basic Checks
UFPI had positive earnings in the past year.
UFPI had a positive operating cash flow in the past year.
In the past 5 years UFPI has always been profitable.
Each year in the past 5 years UFPI had a positive operating cash flow.
1.2 Ratios
UFPI's Return On Assets of 12.97% is fine compared to the rest of the industry. UFPI outperforms 77.50% of its industry peers.
Looking at the Return On Equity, with a value of 17.23%, UFPI is in line with its industry, outperforming 55.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.12%, UFPI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
UFPI had an Average Return On Invested Capital over the past 3 years of 20.14%. This is significantly above the industry average of 13.19%.
The last Return On Invested Capital (14.12%) for UFPI is well below the 3 year average (20.14%), which needs to be investigated, but indicates that UFPI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.97% | ||
| ROE | 17.23% | ||
| ROIC | 14.12% |
ROA(3y)15.42%
ROA(5y)13.1%
ROE(3y)22.82%
ROE(5y)19.79%
ROIC(3y)20.14%
ROIC(5y)17.31%
1.3 Margins
UFPI has a worse Profit Margin (6.55%) than 65.00% of its industry peers.
UFPI's Profit Margin has improved in the last couple of years.
UFPI has a worse Operating Margin (8.03%) than 72.50% of its industry peers.
In the last couple of years the Operating Margin of UFPI has grown nicely.
UFPI has a worse Gross Margin (19.27%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of UFPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.03% | ||
| PM (TTM) | 6.55% | ||
| GM | 19.27% |
OM growth 3Y9.08%
OM growth 5Y14.91%
PM growth 3Y13.34%
PM growth 5Y15.94%
GM growth 3Y8.18%
GM growth 5Y8.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UFPI is creating value.
The number of shares outstanding for UFPI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, UFPI has more shares outstanding
The debt/assets ratio for UFPI has been reduced compared to a year ago.
2.2 Solvency
UFPI has an Altman-Z score of 8.11. This indicates that UFPI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UFPI (8.11) is better than 87.50% of its industry peers.
UFPI has a debt to FCF ratio of 0.52. This is a very positive value and a sign of high solvency as it would only need 0.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.52, UFPI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that UFPI is not too dependend on debt financing.
UFPI has a better Debt to Equity ratio (0.07) than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | 8.11 |
ROIC/WACC1.3
WACC10.88%
2.3 Liquidity
A Current Ratio of 4.31 indicates that UFPI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.31, UFPI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
A Quick Ratio of 3.25 indicates that UFPI has no problem at all paying its short term obligations.
UFPI has a better Quick ratio (3.25) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
The earnings per share for UFPI have decreased strongly by -14.87% in the last year.
Measured over the past years, UFPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.06% on average per year.
Looking at the last year, UFPI shows a quite strong growth in Revenue. The Revenue has grown by 9.80% in the last year.
The Revenue has been growing by 9.96% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.87%
EPS 3Y25.37%
EPS 5Y28.06%
EPS Q2Q%-21.9%
Revenue 1Y (TTM)9.8%
Revenue growth 3Y11.88%
Revenue growth 5Y9.96%
Sales Q2Q%-9.75%
3.2 Future
UFPI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.45% yearly.
UFPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.40% yearly.
EPS Next Y-12.87%
EPS Next 2Y-3.67%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue Next Year-9.87%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.4%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
UFPI is valuated correctly with a Price/Earnings ratio of 15.91.
Based on the Price/Earnings ratio, UFPI is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UFPI to the average of the S&P500 Index (28.46), we can say UFPI is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.46 indicates a correct valuation of UFPI.
70.00% of the companies in the same industry are more expensive than UFPI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.56, UFPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFPI is valued cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UFPI is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
UFPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-3.67%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
UFPI has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
UFPI's Dividend Yield is a higher than the industry average which is at 1.05.
Compared to an average S&P500 Dividend Yield of 2.27, UFPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of UFPI is nicely growing with an annual growth rate of 25.06%!
UFPI has paid a dividend for at least 10 years, which is a reliable track record.
UFPI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)25.06%
Div Incr Years12
Div Non Decr Years31
5.3 Sustainability
14.49% of the earnings are spent on dividend by UFPI. This is a low number and sustainable payout ratio.
UFPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.49%
EPS Next 2Y-3.67%
EPS Next 3Y0.45%
UFP INDUSTRIES INC
NASDAQ:UFPI (1/31/2025, 6:49:10 PM)
After market: 115.65 0 (0%)115.65
-2.67 (-2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner Change-0.5%
Ins Owners2.1%
Ins Owner Change-1.36%
Market Cap7.02B
Analysts80
Price Target138.21 (19.51%)
Short Float %1.52%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend1.11
Dividend Growth(5Y)25.06%
DP14.49%
Div Incr Years12
Div Non Decr Years31
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.9%
Min EPS beat(2)-14.99%
Max EPS beat(2)-0.81%
EPS beat(4)1
Avg EPS beat(4)-0.93%
Min EPS beat(4)-14.99%
Max EPS beat(4)15.65%
EPS beat(8)3
Avg EPS beat(8)1.86%
EPS beat(12)7
Avg EPS beat(12)15.8%
EPS beat(16)11
Avg EPS beat(16)24.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.39%
Min Revenue beat(2)-8.37%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-5.95%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)-0.42%
Revenue beat(8)0
Avg Revenue beat(8)-6.53%
Revenue beat(12)4
Avg Revenue beat(12)0.27%
Revenue beat(16)8
Avg Revenue beat(16)3.94%
PT rev (1m)0%
PT rev (3m)-4.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 15.46 | ||
| P/S | 0.84 | ||
| P/FCF | 13.23 | ||
| P/OCF | 9.42 | ||
| P/B | 2.21 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)7.27
EY6.29%
EPS(NY)7.48
Fwd EY6.47%
FCF(TTM)8.74
FCFY7.56%
OCF(TTM)12.28
OCFY10.62%
SpS137.58
BVpS52.28
TBVpS44.02
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.97% | ||
| ROE | 17.23% | ||
| ROCE | 18.57% | ||
| ROIC | 14.12% | ||
| ROICexc | 21.4% | ||
| ROICexgc | 27.11% | ||
| OM | 8.03% | ||
| PM (TTM) | 6.55% | ||
| GM | 19.27% | ||
| FCFM | 6.35% |
ROA(3y)15.42%
ROA(5y)13.1%
ROE(3y)22.82%
ROE(5y)19.79%
ROIC(3y)20.14%
ROIC(5y)17.31%
ROICexc(3y)25.54%
ROICexc(5y)21.76%
ROICexgc(3y)32.19%
ROICexgc(5y)27.55%
ROCE(3y)26.55%
ROCE(5y)22.81%
ROICexcg growth 3Y5.5%
ROICexcg growth 5Y13.72%
ROICexc growth 3Y5.42%
ROICexc growth 5Y13.15%
OM growth 3Y9.08%
OM growth 5Y14.91%
PM growth 3Y13.34%
PM growth 5Y15.94%
GM growth 3Y8.18%
GM growth 5Y8.28%
F-Score8
Asset Turnover1.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.52 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 147.3% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.33% | ||
| Profit Quality | 97.02% | ||
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 8.11 |
F-Score8
WACC10.88%
ROIC/WACC1.3
Cap/Depr(3y)148.05%
Cap/Depr(5y)138.79%
Cap/Sales(3y)2.02%
Cap/Sales(5y)1.94%
Profit Quality(3y)109.3%
Profit Quality(5y)116.38%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.87%
EPS 3Y25.37%
EPS 5Y28.06%
EPS Q2Q%-21.9%
EPS Next Y-12.87%
EPS Next 2Y-3.67%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue 1Y (TTM)9.8%
Revenue growth 3Y11.88%
Revenue growth 5Y9.96%
Sales Q2Q%-9.75%
Revenue Next Year-9.87%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.4%
Revenue Next 5YN/A
EBIT growth 1Y-2.95%
EBIT growth 3Y22.04%
EBIT growth 5Y26.36%
EBIT Next Year2.44%
EBIT Next 3Y5.57%
EBIT Next 5YN/A
FCF growth 1Y-12.83%
FCF growth 3Y46.62%
FCF growth 5Y106.42%
OCF growth 1Y-2.35%
OCF growth 3Y41.82%
OCF growth 5Y52.42%