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Reasonable growth and debt and a high ROIC for PATRICK INDUSTRIES INC (NASDAQ:PATK).

By Mill Chart

Last update: Aug 29, 2023

In this article we will dive into PATRICK INDUSTRIES INC (NASDAQ:PATK) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PATRICK INDUSTRIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:PATK highlighted

  • PATRICK INDUSTRIES INC has shown strong performance in revenue growth over the past 5 years, with a 24.44% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 21.45%, PATRICK INDUSTRIES INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • PATRICK INDUSTRIES INC maintains a healthy Debt/Free Cash Flow Ratio of 2.77, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • PATRICK INDUSTRIES INC demonstrates consistent Profit Quality over the past 5 years, with a strong 128.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • PATRICK INDUSTRIES INC has experienced impressive EBIT growth over the past 5 years, with 32.41% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • The EBIT 5-year growth of PATRICK INDUSTRIES INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall PATK gets a fundamental rating of 6 out of 10. We evaluated PATK against 42 industry peers in the Automobile Components industry. While PATK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PATK has a bad growth rate and is valued cheaply. This makes PATK very considerable for value investing!

Our latest full fundamental report of PATK contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.



NASDAQ:PATK (6/21/2024, 7:16:53 PM)

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