Would Peter Lynch consider UFP INDUSTRIES INC (NASDAQ:UFPI) a winning stock?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if UFP INDUSTRIES INC (NASDAQ:UFPI) fits his winning formula.

Following Peter Lynch’s approach: Does UFP INDUSTRIES INC (NASDAQ:UFPI) fit the bill?

• UFPI showcases a robust Return on Equity (ROE) of 15.95%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• UFPI's Debt/Equity ratio of 0.07 suggests a healthy balance between debt financing and shareholder equity.
• The EPS of UFPI has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• UFPI boasts a PEG ratio of 0.86, indicating a reasonable valuation relative to its earnings growth.
• A Current Ratio of 4.88 suggests that UFPI is in a solid financial position to handle short-term market fluctuations.

What is the full fundamental picture of UFPI telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

UFPI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Building Products industry. UFPI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. UFPI is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of UFPI

More Affordable Growth stocks can be found in our Peter Lynch screener.

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.