PATRICK INDUSTRIES INC (PATK) Stock Fundamental Analysis
NASDAQ:PATK - Nasdaq - US7033431039 - Common Stock - Currency: USD
PATK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. While PATK is still in line with the averages on profitability rating, there are concerns on its financial health. PATK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PATK had positive earnings in the past year.
In the past year PATK had a positive cash flow from operations.
In the past 5 years PATK has always been profitable.
Each year in the past 5 years PATK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.44%, PATK is doing worse than 60.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.40%, PATK belongs to the top of the industry, outperforming 90.12% of the companies in the same industry.
PATK has a Return On Invested Capital of 7.23%. This is in the lower half of the industry: PATK underperforms 66.67% of its industry peers.
PATK had an Average Return On Invested Capital over the past 3 years of 10.59%. This is in line with the industry average of 9.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 12.4% | ||
| ROIC | 7.23% |
ROA(3y)7.32%
ROA(5y)7.19%
ROE(3y)20.1%
ROE(5y)21.39%
ROIC(3y)10.59%
ROIC(5y)10.52%
1.3 Margins
PATK has a Profit Margin of 3.74%. This is in the lower half of the industry: PATK underperforms 60.49% of its industry peers.
In the last couple of years the Profit Margin of PATK has remained more or less at the same level.
PATK's Operating Margin of 6.98% is on the low side compared to the rest of the industry. PATK is outperformed by 64.20% of its industry peers.
PATK's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 22.71%, PATK is not doing good in the industry: 65.43% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PATK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 3.74% | ||
| GM | 22.71% |
OM growth 3Y-6.97%
OM growth 5Y1%
PM growth 3Y-12.26%
PM growth 5Y-0.57%
GM growth 3Y4.62%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PATK is creating some value.
PATK has more shares outstanding than it did 1 year ago.
PATK has more shares outstanding than it did 5 years ago.
PATK has a worse debt/assets ratio than last year.
2.2 Solvency
PATK has an Altman-Z score of 2.93. This is not the best score and indicates that PATK is in the grey zone with still only limited risk for bankruptcy at the moment.
PATK has a better Altman-Z score (2.93) than 69.14% of its industry peers.
PATK has a debt to FCF ratio of 5.68. This is a neutral value as PATK would need 5.68 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.68, PATK is not doing good in the industry: 65.43% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.25 is on the high side and indicates that PATK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, PATK is doing worse than 83.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.78
WACC9.32%
2.3 Liquidity
PATK has a Current Ratio of 2.41. This indicates that PATK is financially healthy and has no problem in meeting its short term obligations.
PATK has a better Current ratio (2.41) than 81.48% of its industry peers.
PATK has a Quick Ratio of 1.04. This is a normal value and indicates that PATK is financially healthy and should not expect problems in meeting its short term obligations.
PATK's Quick ratio of 1.04 is on the low side compared to the rest of the industry. PATK is outperformed by 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
PATK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.74%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
Looking at the last year, PATK shows a quite strong growth in Revenue. The Revenue has grown by 8.12% in the last year.
PATK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.72% yearly.
EPS 1Y (TTM)-7.74%
EPS 3Y-13.74%
EPS 5Y9.87%
EPS Q2Q%4.72%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y-3.05%
Revenue growth 5Y9.72%
Sales Q2Q%7.49%
3.2 Future
The Earnings Per Share is expected to grow by 18.43% on average over the next years. This is quite good.
Based on estimates for the next years, PATK will show a small growth in Revenue. The Revenue will grow by 4.09% on average per year.
EPS Next Y7.38%
EPS Next 2Y18.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.29%
Revenue Next 2Y4.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 19.89, the valuation of PATK can be described as rather expensive.
PATK's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.25. PATK is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.35, which indicates a correct valuation of PATK.
60.49% of the companies in the same industry are cheaper than PATK, based on the Price/Forward Earnings ratio.
PATK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PATK indicates a slightly more expensive valuation: PATK is more expensive than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PATK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PATK does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as PATK's earnings are expected to grow with 18.43% in the coming years.
PEG (NY)2.69
PEG (5Y)2.02
EPS Next 2Y18.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PATK has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.14, PATK has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, PATK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of PATK grows each year by 43.70%, which is quite nice.
PATK has been paying a dividend for at least 10 years, so it has a reliable track record.
PATK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)43.7%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
36.06% of the earnings are spent on dividend by PATK. This is a low number and sustainable payout ratio.
PATK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.06%
EPS Next 2Y18.43%
EPS Next 3YN/A
NASDAQ:PATK (6/2/2025, 12:09:41 PM)
82.939
-2.92 (-3.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change8.38%
Ins Owners4.05%
Ins Owner Change1.01%
Market Cap2.77B
Analysts77.33
Price Target100.07 (20.65%)
Short Float %10.33%
Short Ratio7.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend1.5
Dividend Growth(5Y)43.7%
DP36.06%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.31%
Min EPS beat(2)-19.79%
Max EPS beat(2)11.17%
EPS beat(4)2
Avg EPS beat(4)-2.15%
Min EPS beat(4)-19.79%
Max EPS beat(4)11.17%
EPS beat(8)6
Avg EPS beat(8)2.37%
EPS beat(12)10
Avg EPS beat(12)8.45%
EPS beat(16)14
Avg EPS beat(16)16.09%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.71%
Max Revenue beat(2)2.31%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)2.54%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)12
Avg Revenue beat(16)4.6%
PT rev (1m)-5.36%
PT rev (3m)-5.75%
EPS NQ rev (1m)-15.49%
EPS NQ rev (3m)-15.49%
EPS NY rev (1m)-16.78%
EPS NY rev (3m)-16.78%
Revenue NQ rev (1m)-4.3%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)-4.45%
Revenue NY rev (3m)-4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 14.35 | ||
| P/S | 0.73 | ||
| P/FCF | 11.03 | ||
| P/OCF | 8.36 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.73 |
EPS(TTM)4.17
EY5.03%
EPS(NY)5.78
Fwd EY6.97%
FCF(TTM)7.52
FCFY9.07%
OCF(TTM)9.92
OCFY11.96%
SpS113.24
BVpS34.14
TBVpS-13.51
PEG (NY)2.69
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 12.4% | ||
| ROCE | 9.5% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 18.24% | ||
| OM | 6.98% | ||
| PM (TTM) | 3.74% | ||
| GM | 22.71% | ||
| FCFM | 6.64% |
ROA(3y)7.32%
ROA(5y)7.19%
ROE(3y)20.1%
ROE(5y)21.39%
ROIC(3y)10.59%
ROIC(5y)10.52%
ROICexc(3y)10.69%
ROICexc(5y)10.77%
ROICexgc(3y)25.32%
ROICexgc(5y)25.36%
ROCE(3y)13.92%
ROCE(5y)13.82%
ROICexcg growth 3Y-13.77%
ROICexcg growth 5Y-5.41%
ROICexc growth 3Y-16.43%
ROICexc growth 5Y-6.2%
OM growth 3Y-6.97%
OM growth 5Y1%
PM growth 3Y-12.26%
PM growth 5Y-0.57%
GM growth 3Y4.62%
GM growth 5Y4.45%
F-Score8
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 47.59% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.59% | ||
| Profit Quality | 177.6% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.93 |
F-Score8
WACC9.32%
ROIC/WACC0.78
Cap/Depr(3y)49.11%
Cap/Depr(5y)50.59%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.65%
Profit Quality(3y)175.76%
Profit Quality(5y)148.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.74%
EPS 3Y-13.74%
EPS 5Y9.87%
EPS Q2Q%4.72%
EPS Next Y7.38%
EPS Next 2Y18.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.12%
Revenue growth 3Y-3.05%
Revenue growth 5Y9.72%
Sales Q2Q%7.49%
Revenue Next Year2.29%
Revenue Next 2Y4.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.36%
EBIT growth 3Y-9.81%
EBIT growth 5Y10.81%
EBIT Next Year68.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.03%
FCF growth 3Y10.27%
FCF growth 5Y8.81%
OCF growth 1Y-23.51%
OCF growth 3Y9.04%
OCF growth 5Y11.18%