Why Peter Lynch may take an interest in UFP INDUSTRIES INC (NASDAQ:UFPI)

Peter Lynch, one of the most successful investors of all time, focused on growth stocks with strong fundamentals and a business model that’s easy to understand. Let’s analyze whether UFP INDUSTRIES INC (NASDAQ:UFPI) fits his legendary investment approach.

Does UFP INDUSTRIES INC (NASDAQ:UFPI) meet Peter Lynch’s stock-picking criteria?

• The Return on Equity(ROE) of UFPI is 15.95%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• UFPI has a Debt/Equity ratio of 0.07, indicating a balanced approach to financing growth.
• The EPS of UFPI has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• Considering its PEG ratio of 0.86, UFPI may be an undervalued growth opportunity.
• With a Current Ratio of 4.88, UFPI appears well-positioned to meet its near-term financial obligations.

How does the complete fundamental picture look for UFPI?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. UFPI has a correct valuation and a medium growth rate.

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

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.