UFP INDUSTRIES INC (UFPI) Stock Fundamental Analysis
NASDAQ:UFPI - Nasdaq - US90278Q1085 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to UFPI. UFPI was compared to 41 industry peers in the Building Products industry. UFPI has an excellent financial health rating, but there are some minor concerns on its profitability. UFPI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UFPI was profitable.
In the past year UFPI had a positive cash flow from operations.
Each year in the past 5 years UFPI has been profitable.
In the past 5 years UFPI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UFPI (12.39%) is better than 70.73% of its industry peers.
With a decent Return On Equity value of 15.95%, UFPI is doing good in the industry, outperforming 60.98% of the companies in the same industry.
UFPI's Return On Invested Capital of 13.39% is fine compared to the rest of the industry. UFPI outperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UFPI is above the industry average of 12.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.39% | ||
| ROE | 15.95% | ||
| ROIC | 13.39% |
ROA(3y)13.3%
ROA(5y)13.17%
ROE(3y)18.2%
ROE(5y)19.45%
ROIC(3y)16.31%
ROIC(5y)17.19%
1.3 Margins
UFPI's Profit Margin of 6.20% is on the low side compared to the rest of the industry. UFPI is outperformed by 60.98% of its industry peers.
In the last couple of years the Profit Margin of UFPI has grown nicely.
UFPI's Operating Margin of 7.63% is on the low side compared to the rest of the industry. UFPI is outperformed by 70.73% of its industry peers.
In the last couple of years the Operating Margin of UFPI has grown nicely.
UFPI has a worse Gross Margin (18.73%) than 78.05% of its industry peers.
UFPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.63% | ||
| PM (TTM) | 6.2% | ||
| GM | 18.73% |
OM growth 3Y-4.27%
OM growth 5Y6.06%
PM growth 3Y-0.06%
PM growth 5Y8.59%
GM growth 3Y4.22%
GM growth 5Y3.5%
2. Health
2.1 Basic Checks
UFPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UFPI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UFPI has been reduced compared to 5 years ago.
UFPI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.14 indicates that UFPI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.14, UFPI belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
The Debt to FCF ratio of UFPI is 0.57, which is an excellent value as it means it would take UFPI, only 0.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.57, UFPI belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
UFPI has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.07, UFPI belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 8.14 |
ROIC/WACC1.3
WACC10.33%
2.3 Liquidity
UFPI has a Current Ratio of 4.88. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
UFPI's Current ratio of 4.88 is amongst the best of the industry. UFPI outperforms 90.24% of its industry peers.
A Quick Ratio of 3.48 indicates that UFPI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.48, UFPI belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.88 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
UFPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.00%.
The Earnings Per Share has been growing by 18.40% on average over the past years. This is quite good.
The Revenue has grown by 14.86% in the past year. This is quite good.
UFPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.54% yearly.
EPS 1Y (TTM)-16%
EPS 3Y-7.63%
EPS 5Y18.4%
EPS Q2Q%-30.86%
Revenue 1Y (TTM)14.86%
Revenue growth 3Y-8.33%
Revenue growth 5Y8.54%
Sales Q2Q%-4.09%
3.2 Future
The Earnings Per Share is expected to grow by 8.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.24% on average over the next years.
EPS Next Y4.43%
EPS Next 2Y8.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y4.24%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 15.48, UFPI is valued correctly.
65.85% of the companies in the same industry are more expensive than UFPI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. UFPI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.82, UFPI is valued correctly.
Based on the Price/Forward Earnings ratio, UFPI is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
UFPI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFPI is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of UFPI may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)0.84
EPS Next 2Y8.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UFPI has a Yearly Dividend Yield of 1.34%. 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 1.27.
With a Dividend Yield of 1.34, UFPI pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of UFPI is nicely growing with an annual growth rate of 26.94%!
UFPI has paid a dividend for at least 10 years, which is a reliable track record.
UFPI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)26.94%
Div Incr Years12
Div Non Decr Years31
5.3 Sustainability
UFPI pays out 15.71% 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.
DP15.71%
EPS Next 2Y8.02%
EPS Next 3YN/A
104.78
+1.25 (+1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.32%
Inst Owner Change0.27%
Ins Owners2.08%
Ins Owner Change-0.34%
Market Cap6.37B
Analysts80
Price Target135.66 (29.47%)
Short Float %1.89%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend1.32
Dividend Growth(5Y)26.94%
DP15.71%
Div Incr Years12
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.13%
Min EPS beat(2)-14.99%
Max EPS beat(2)-11.27%
EPS beat(4)1
Avg EPS beat(4)-2.85%
Min EPS beat(4)-14.99%
Max EPS beat(4)15.65%
EPS beat(8)2
Avg EPS beat(8)-1.13%
EPS beat(12)6
Avg EPS beat(12)8.1%
EPS beat(16)10
Avg EPS beat(16)21.18%
Revenue beat(2)1
Avg Revenue beat(2)-3.84%
Min Revenue beat(2)-8.37%
Max Revenue beat(2)0.69%
Revenue beat(4)1
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)0.69%
Revenue beat(8)1
Avg Revenue beat(8)-6.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)8
Avg Revenue beat(16)3.12%
PT rev (1m)0%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.02%
EPS NY rev (1m)-2.06%
EPS NY rev (3m)-5.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 14.82 | ||
| P/S | 0.77 | ||
| P/FCF | 15.53 | ||
| P/OCF | 9.92 | ||
| P/B | 1.98 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 6.88 |
EPS(TTM)6.77
EY6.46%
EPS(NY)7.07
Fwd EY6.75%
FCF(TTM)6.75
FCFY6.44%
OCF(TTM)10.57
OCFY10.08%
SpS136.32
BVpS53.01
TBVpS44.8
PEG (NY)3.49
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.39% | ||
| ROE | 15.95% | ||
| ROCE | 17.38% | ||
| ROIC | 13.39% | ||
| ROICexc | 20.01% | ||
| ROICexgc | 25.17% | ||
| OM | 7.63% | ||
| PM (TTM) | 6.2% | ||
| GM | 18.73% | ||
| FCFM | 4.95% |
ROA(3y)13.3%
ROA(5y)13.17%
ROE(3y)18.2%
ROE(5y)19.45%
ROIC(3y)16.31%
ROIC(5y)17.19%
ROICexc(3y)22.4%
ROICexc(5y)22.4%
ROICexgc(3y)28.31%
ROICexgc(5y)28.33%
ROCE(3y)21.16%
ROCE(5y)22.34%
ROICexcg growth 3Y-15.45%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y-15.65%
ROICexc growth 5Y2.29%
OM growth 3Y-4.27%
OM growth 5Y6.06%
PM growth 3Y-0.06%
PM growth 5Y8.59%
GM growth 3Y4.22%
GM growth 5Y3.5%
F-Score8
Asset Turnover2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 156.77% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.34% | ||
| Profit Quality | 79.77% | ||
| Current Ratio | 4.88 | ||
| Quick Ratio | 3.48 | ||
| Altman-Z | 8.14 |
F-Score8
WACC10.33%
ROIC/WACC1.3
Cap/Depr(3y)148.93%
Cap/Depr(5y)144.72%
Cap/Sales(3y)2.6%
Cap/Sales(5y)2.26%
Profit Quality(3y)120.39%
Profit Quality(5y)106.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-16%
EPS 3Y-7.63%
EPS 5Y18.4%
EPS Q2Q%-30.86%
EPS Next Y4.43%
EPS Next 2Y8.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.86%
Revenue growth 3Y-8.33%
Revenue growth 5Y8.54%
Sales Q2Q%-4.09%
Revenue Next Year2.61%
Revenue Next 2Y4.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.21%
EBIT growth 3Y-12.25%
EBIT growth 5Y15.12%
EBIT Next Year37.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.36%
FCF growth 3Y4.33%
FCF growth 5Y9.19%
OCF growth 1Y-33.06%
OCF growth 3Y7.83%
OCF growth 5Y12.97%