UFP INDUSTRIES INC (UFPI)
US90278Q1085 - Common Stock
Taking everything into account, UFPI scores 6 out of 10 in our fundamental rating. UFPI was compared to 39 industry peers in the Building Products industry. UFPI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. UFPI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UFPI had positive earnings in the past year.
In the past year UFPI had a positive cash flow from operations.
UFPI had positive earnings in each of the past 5 years.
UFPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 12.97%, UFPI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.23%, UFPI is in line with its industry, outperforming 53.85% 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 66.67% 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 13.33%.
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's Profit Margin of 6.55% is on the low side compared to the rest of the industry. UFPI is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of UFPI has grown nicely.
UFPI has a Operating Margin of 8.03%. This is in the lower half of the industry: UFPI underperforms 74.36% of its industry peers.
In the last couple of years the Operating Margin of UFPI has grown nicely.
Looking at the Gross Margin, with a value of 19.27%, UFPI is doing worse than 79.49% of the companies in the same industry.
UFPI's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UFPI is creating value.
UFPI has about the same amout of shares outstanding than it did 1 year ago.
UFPI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UFPI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.95 indicates that UFPI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.95, UFPI belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
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 82.05% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that UFPI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.07, UFPI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | 7.95 |
ROIC/WACC1.36
WACC10.41%
2.3 Liquidity
UFPI has a Current Ratio of 4.31. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
UFPI has a Current ratio of 4.31. This is amongst the best in the industry. UFPI outperforms 89.74% of its industry peers.
A Quick Ratio of 3.25 indicates that UFPI has no problem at all paying its short term obligations.
UFPI has a Quick ratio of 3.25. This is amongst the best in the industry. UFPI outperforms 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
UFPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.87%.
The Earnings Per Share has been growing by 28.06% on average over the past years. This is a very strong growth
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
The Earnings Per Share is expected to grow by 0.45% on average over the next years.
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.
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 15.61, the valuation of UFPI can be described as correct.
Based on the Price/Earnings ratio, UFPI is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of UFPI to the average of the S&P500 Index (27.73), we can say UFPI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.18, the valuation of UFPI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 69.23% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UFPI to the average of the S&P500 Index (22.83), we can say UFPI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFPI is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UFPI is valued a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The decent profitability rating of UFPI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-3.67%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, UFPI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.05, UFPI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, UFPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of UFPI is nicely growing with an annual growth rate of 25.06%!
UFPI has been paying a dividend for at least 10 years, so it has 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
UFPI pays out 14.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of UFPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.49%
EPS Next 2Y-3.67%
EPS Next 3Y0.45%
UFP INDUSTRIES INC
NASDAQ:UFPI (12/20/2024, 8:00:01 PM)
After market: 113.51 0 (0%)113.51
-0.11 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner Change0.1%
Ins Owners2.1%
Ins Owner Change-1.36%
Market Cap6.89B
Analysts80
Price Target138.21 (21.76%)
Short Float %1.26%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Dividend Growth(5Y)25.06%
DP14.49%
Div Incr Years12
Div Non Decr Years31
Ex-Date
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)-4.98%
PT rev (3m)-0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.37%
EPS NY rev (1m)-1.16%
EPS NY rev (3m)-7.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.57%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 15.18 | ||
| P/S | 0.83 | ||
| P/FCF | 12.99 | ||
| P/OCF | 9.24 | ||
| P/B | 2.17 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)7.27
EY6.4%
EPS(NY)7.48
Fwd EY6.59%
FCF(TTM)8.74
FCFY7.7%
OCF(TTM)12.28
OCFY10.82%
SpS137.58
BVpS52.28
TBVpS44.02
PEG (NY)N/A
PEG (5Y)0.56
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 | 7.95 |
F-Score8
WACC10.41%
ROIC/WACC1.36
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%