PATRICK INDUSTRIES INC (PATK)
US7033431039 - Common Stock
We assign a fundamental rating of 6 out of 10 to PATK. 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PATK was profitable.
PATK had a positive operating cash flow in the past year.
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
PATK has a Return On Assets of 5.58%. This is in the better half of the industry: PATK outperforms 78.57% of its industry peers.
PATK has a Return On Equity of 13.68%. This is amongst the best in the industry. PATK outperforms 83.33% of its industry peers.
PATK's Return On Invested Capital of 8.66% is fine compared to the rest of the industry. PATK outperforms 73.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PATK is above the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 13.68% | ||
| ROIC | 8.66% |
ROA(3y)8.62%
ROA(5y)7.5%
ROE(3y)25.78%
ROE(5y)22.54%
ROIC(3y)11.99%
ROIC(5y)10.73%
1.3 Margins
PATK's Profit Margin of 4.12% is fine compared to the rest of the industry. PATK outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of PATK has declined.
PATK has a better Operating Margin (7.50%) than 69.05% of its industry peers.
In the last couple of years the Operating Margin of PATK has remained more or less at the same level.
PATK has a better Gross Margin (22.55%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of PATK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.5% | ||
| PM (TTM) | 4.12% | ||
| GM | 22.55% |
OM growth 3Y2.08%
OM growth 5Y-0.98%
PM growth 3Y1.81%
PM growth 5Y-4.89%
GM growth 3Y6.91%
GM growth 5Y4.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PATK is still creating some value.
The number of shares outstanding for PATK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PATK has less shares outstanding
Compared to 1 year ago, PATK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.27 indicates that PATK is not in any danger for bankruptcy at the moment.
PATK has a Altman-Z score of 3.27. This is in the better half of the industry: PATK outperforms 73.81% of its industry peers.
The Debt to FCF ratio of PATK is 2.93, which is a good value as it means it would take PATK, 2.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PATK (2.93) is better than 78.57% of its industry peers.
PATK has a Debt/Equity ratio of 0.97. This is a neutral value indicating PATK is somewhat dependend on debt financing.
PATK's Debt to Equity ratio of 0.97 is on the low side compared to the rest of the industry. PATK is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.8
WACC10.85%
2.3 Liquidity
PATK has a Current Ratio of 2.38. This indicates that PATK is financially healthy and has no problem in meeting its short term obligations.
PATK has a better Current ratio (2.38) than 64.29% of its industry peers.
A Quick Ratio of 0.73 indicates that PATK may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, PATK is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
PATK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.43%.
Measured over the past 5 years, PATK shows a small growth in Earnings Per Share. The EPS has been growing by 5.86% on average per year.
The Revenue for PATK has decreased by -28.96% in the past year. This is quite bad
The Revenue has been growing by 8.91% on average over the past years. This is quite good.
EPS 1Y (TTM)-54.43%
EPS 3Y14.82%
EPS 5Y5.86%
EPS growth Q2Q-16.07%
Revenue 1Y (TTM)-28.96%
Revenue growth 3Y11.73%
Revenue growth 5Y8.91%
Revenue growth Q2Q-17.93%
3.2 Future
PATK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.38% yearly.
PATK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y23.5%
EPS Next 2Y22.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10%
Revenue Next 2Y8.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.13, PATK is valued correctly.
Based on the Price/Earnings ratio, PATK is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
PATK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.92.
PATK is valuated correctly with a Price/Forward Earnings ratio of 13.06.
Based on the Price/Forward Earnings ratio, PATK is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. PATK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
PATK's Enterprise Value to EBITDA ratio is in line with the industry average.
PATK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PATK is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
PATK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PATK has a very decent profitability rating, which may justify a higher PE ratio.
PATK's earnings are expected to grow with 22.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)2.75
EPS Next 2Y22.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, PATK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.79, PATK pays a better dividend. On top of this PATK pays more dividend than 80.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, PATK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
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 last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
29.47% of the earnings are spent on dividend by PATK. This is a low number and sustainable payout ratio.
DP29.47%
EPS Next 2Y22.38%
EPS Next 3YN/A
PATRICK INDUSTRIES INC
NASDAQ:PATK (4/26/2024, 7:08:51 PM)
After market: 105.49 0 (0%)105.49
+1.07 (+1.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 13.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.69
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 13.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.5% | ||
| PM (TTM) | 4.12% | ||
| GM | 22.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-54.43%
EPS 3Y14.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.96%
Revenue growth 3Y11.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y