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PATRICK INDUSTRIES INC (NASDAQ:PATK) Exhibits Quality Stock Traits. Here's Why.

By Mill Chart

Last update: Jan 17, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PATRICK INDUSTRIES INC (NASDAQ:PATK) is suited for quality investing. Investors should of course do their own research, but we spotted PATRICK INDUSTRIES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into PATRICK INDUSTRIES INC's Quality Metrics.

  • PATRICK INDUSTRIES INC has demonstrated significant revenue growth over the past 5 years, with a 24.44% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 20.64%, PATRICK INDUSTRIES INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • PATRICK INDUSTRIES INC maintains a healthy Debt/Free Cash Flow Ratio of 2.72, 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 exhibits impressive Profit Quality (5-year) with a 128.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • PATRICK INDUSTRIES INC has consistently achieved strong EBIT growth over the past 5 years, with a 32.41% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • 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.

What is the full fundamental picture of NASDAQ:PATK telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, PATK scores 6 out of 10 in our fundamental rating. PATK was compared to 42 industry peers in the Automobile Components industry. While PATK has a great profitability rating, there are some minor concerns on its financial health. PATK is valued correctly, but it does not seem to be growing.

Check the latest full fundamental report of PATK for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill 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.