UFP INDUSTRIES INC (UFPI)
US90278Q1085 - Common Stock
Overall UFPI gets a fundamental rating of 6 out of 10. We evaluated UFPI against 39 industry peers in the Building Products industry. UFPI has an excellent financial health rating, but there are some minor concerns on its profitability. UFPI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year UFPI was profitable.
UFPI had a positive operating cash flow in the past year.
Each year in the past 5 years UFPI has been profitable.
UFPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UFPI has a Return On Assets of 11.41%. This is in the better half of the industry: UFPI outperforms 69.23% of its industry peers.
The Return On Equity of UFPI (15.25%) is comparable to the rest of the industry.
UFPI has a Return On Invested Capital of 12.51%. This is comparable to the rest of the industry: UFPI outperforms 58.97% of its industry peers.
UFPI had an Average Return On Invested Capital over the past 3 years of 20.14%. This is significantly above the industry average of 13.64%.
The 3 year average ROIC (20.14%) for UFPI is well above the current ROIC(12.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 15.25% | ||
| ROIC | 12.51% |
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 Profit Margin of 6.85%. This is in the lower half of the industry: UFPI underperforms 66.67% of its industry peers.
UFPI's Profit Margin has improved in the last couple of years.
UFPI has a Operating Margin of 8.47%. This is in the lower half of the industry: UFPI underperforms 76.92% of its industry peers.
UFPI's Operating Margin has improved in the last couple of years.
UFPI has a Gross Margin of 19.58%. This is amonst the worse of the industry: UFPI underperforms 82.05% of its industry peers.
In the last couple of years the Gross Margin of UFPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.47% | ||
| PM (TTM) | 6.85% | ||
| GM | 19.58% |
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.
UFPI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, UFPI has more shares outstanding
Compared to 1 year ago, UFPI has an improved debt to assets ratio.
2.2 Solvency
UFPI has an Altman-Z score of 8.12. This indicates that UFPI is financially healthy and has little risk of bankruptcy at the moment.
UFPI has a Altman-Z score of 8.12. This is amongst the best in the industry. UFPI outperforms 89.74% of its industry peers.
The Debt to FCF ratio of UFPI is 0.41, which is an excellent value as it means it would take UFPI, only 0.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.41, UFPI belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that UFPI is not too dependend on debt financing.
UFPI's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. UFPI outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 8.12 |
ROIC/WACC1.21
WACC10.35%
2.3 Liquidity
UFPI has a Current Ratio of 4.34. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
UFPI has a better Current ratio (4.34) than 89.74% of its industry peers.
UFPI has a Quick Ratio of 3.18. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of UFPI (3.18) is better than 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The earnings per share for UFPI have decreased strongly by -14.87% in the last year.
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 very negative growth in Revenue. The Revenue has decreased by -25.02% in the last year.
UFPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.96% yearly.
EPS 1Y (TTM)-14.87%
EPS 3Y25.37%
EPS 5Y28.06%
EPS Q2Q%-21.9%
Revenue 1Y (TTM)-25.02%
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.
Based on estimates for the next years, UFPI will show a decrease in Revenue. The Revenue will decrease by -1.40% on average per year.
EPS Next Y-11.84%
EPS Next 2Y-2.32%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue Next Year-9.51%
Revenue Next 2Y-3%
Revenue Next 3Y-1.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 17.77, the valuation of UFPI can be described as rather expensive.
UFPI's Price/Earnings ratio is a bit cheaper when compared to the industry. UFPI is cheaper than 64.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of UFPI to the average of the S&P500 Index (28.65), we can say UFPI is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.80 indicates a correct valuation of UFPI.
UFPI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UFPI is cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.50, UFPI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 76.92% of the companies listed in the same industry.
UFPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UFPI is cheaper than 87.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 9.66 |
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)0.63
EPS Next 2Y-2.32%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
UFPI has a yearly dividend return of 1.00%, which is pretty low.
Compared to an average industry Dividend Yield of 0.95, UFPI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, UFPI pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of UFPI grows each year by 25.06%, which is quite nice.
UFPI has been paying a dividend for at least 10 years, so it has a reliable track record.
UFPI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)25.06%
Div Incr Years11
Div Non Decr Years30
5.3 Sustainability
16.48% of the earnings are spent on dividend by UFPI. This is a low number and sustainable payout ratio.
The dividend of UFPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.48%
EPS Next 2Y-2.32%
EPS Next 3Y0.45%
UFP INDUSTRIES INC
NASDAQ:UFPI (11/18/2024, 4:30:01 PM)
After market: 129.21 0 (0%)129.21
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS beat(16)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 15.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.47% | ||
| PM (TTM) | 6.85% | ||
| GM | 19.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.34 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-14.87%
EPS 3Y25.37%
EPS 5Y
EPS Q2Q%
EPS Next Y-11.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-25.02%
Revenue growth 3Y11.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y