UFP INDUSTRIES INC (UFPI) Stock Fundamental Analysis
NASDAQ:UFPI - Nasdaq - US90278Q1085 - Common Stock - Currency: USD
UFPI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.
In the past 5 years UFPI has always been profitable.
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 11.50%, UFPI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
The Return On Equity of UFPI (14.64%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 12.46%, UFPI is doing good in the industry, outperforming 65.85% of the companies in the same industry.
UFPI had an Average Return On Invested Capital over the past 3 years of 16.31%. This is above the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 14.64% | ||
| ROIC | 12.46% |
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 has a Profit Margin (5.79%) which is in line with its industry peers.
UFPI's Profit Margin has improved in the last couple of years.
UFPI has a worse Operating Margin (7.16%) than 70.73% 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 18.13%, UFPI is doing worse than 85.37% of the companies in the same industry.
In the last couple of years the Gross Margin of UFPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 5.79% | ||
| GM | 18.13% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UFPI is still 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.
Compared to 1 year ago, UFPI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UFPI is 0.78, which is an excellent value as it means it would take UFPI, only 0.78 years of fcf income to pay off all of its debts.
UFPI has a Debt to FCF ratio of 0.78. This is amongst the best in the industry. UFPI outperforms 87.80% of its industry peers.
UFPI has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of UFPI (0.07) is better than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.24
WACC10.04%
2.3 Liquidity
UFPI has a Current Ratio of 4.96. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.96, UFPI belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
UFPI has a Quick Ratio of 3.44. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.44, UFPI belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.96 | ||
| Quick Ratio | 3.44 |
3. Growth
3.1 Past
UFPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.00%.
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 17.24% in the past year. This is quite good.
The Revenue has been growing by 8.54% on average over the past years. This is quite good.
EPS 1Y (TTM)-24%
EPS 3Y-7.63%
EPS 5Y18.4%
EPS Q2Q%-33.67%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-8.33%
Revenue growth 5Y8.54%
Sales Q2Q%-2.65%
3.2 Future
The Earnings Per Share is expected to grow by 7.52% on average over the next years.
UFPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
EPS Next Y-9.63%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
EPS Next 5YN/A
Revenue Next Year-0.52%
Revenue Next 2Y2.03%
Revenue Next 3Y3.03%
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.
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
UFPI is valuated rather expensively with a Price/Earnings ratio of 17.43.
Based on the Price/Earnings ratio, UFPI is valued a bit cheaper than 68.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, UFPI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.29, UFPI is valued correctly.
UFPI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UFPI is cheaper than 70.73% of the companies in the same industry.
UFPI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFPI is valued cheaper than 90.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UFPI is valued a bit cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.42 | ||
| EV/EBITDA | 7.6 |
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)0.95
EPS Next 2Y1.44%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
UFPI has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
UFPI's Dividend Yield is rather good when compared to the industry average which is at 1.19. UFPI pays more dividend than 80.49% of the companies in the same industry.
With a Dividend Yield of 1.40, UFPI pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
On average, the dividend of UFPI grows each year by 26.94%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)26.94%
Div Incr Years12
Div Non Decr Years31
5.3 Sustainability
UFPI pays out 17.12% of its income as dividend. This is a sustainable payout ratio.
UFPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.12%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
106.48
+1.01 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners88.83%
Inst Owner Change1.99%
Ins Owners1.68%
Ins Owner Change0.74%
Market Cap6.43B
Analysts80
Price Target122.4 (14.95%)
Short Float %2.12%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend1.32
Dividend Growth(5Y)26.94%
DP17.12%
Div Incr Years12
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.92%
Min EPS beat(2)-18.56%
Max EPS beat(2)-11.27%
EPS beat(4)0
Avg EPS beat(4)-11.41%
Min EPS beat(4)-18.56%
Max EPS beat(4)-0.81%
EPS beat(8)1
Avg EPS beat(8)-4.85%
EPS beat(12)5
Avg EPS beat(12)2.02%
EPS beat(16)9
Avg EPS beat(16)14.51%
Revenue beat(2)1
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)0.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)0.69%
Revenue beat(8)1
Avg Revenue beat(8)-6.09%
Revenue beat(12)3
Avg Revenue beat(12)-2.62%
Revenue beat(16)7
Avg Revenue beat(16)1.97%
PT rev (1m)0%
PT rev (3m)-9.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.79%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-13.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.29 | ||
| P/S | 0.78 | ||
| P/FCF | 21.42 | ||
| P/OCF | 11.68 | ||
| P/B | 1.97 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 7.6 |
EPS(TTM)6.11
EY5.74%
EPS(NY)6.97
Fwd EY6.54%
FCF(TTM)4.97
FCFY4.67%
OCF(TTM)9.12
OCFY8.56%
SpS136.58
BVpS53.97
TBVpS45.75
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 14.64% | ||
| ROCE | 16.16% | ||
| ROIC | 12.46% | ||
| ROICexc | 16.74% | ||
| ROICexgc | 20.47% | ||
| OM | 7.16% | ||
| PM (TTM) | 5.79% | ||
| GM | 18.13% | ||
| FCFM | 3.64% |
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-Score7
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 165.8% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.24% | ||
| Profit Quality | 62.9% | ||
| Current Ratio | 4.96 | ||
| Quick Ratio | 3.44 | ||
| Altman-Z | N/A |
F-Score7
WACC10.04%
ROIC/WACC1.24
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)-24%
EPS 3Y-7.63%
EPS 5Y18.4%
EPS Q2Q%-33.67%
EPS Next Y-9.63%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
EPS Next 5YN/A
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-8.33%
Revenue growth 5Y8.54%
Sales Q2Q%-2.65%
Revenue Next Year-0.52%
Revenue Next 2Y2.03%
Revenue Next 3Y3.03%
Revenue Next 5YN/A
EBIT growth 1Y-4.53%
EBIT growth 3Y-12.25%
EBIT growth 5Y15.12%
EBIT Next Year21.72%
EBIT Next 3Y14.79%
EBIT Next 5YN/A
FCF growth 1Y-65.07%
FCF growth 3Y4.33%
FCF growth 5Y9.19%
OCF growth 1Y-47.04%
OCF growth 3Y7.83%
OCF growth 5Y12.97%