UFP INDUSTRIES INC (UFPI) Stock Fundamental Analysis
NASDAQ:UFPI - Nasdaq - US90278Q1085 - Common Stock - Currency: USD
Taking everything into account, UFPI scores 6 out of 10 in our fundamental rating. UFPI was compared to 42 industry peers in the Building Products industry. UFPI has an excellent financial health rating, but there are some minor concerns on its profitability. UFPI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UFPI had positive earnings in the past year.
UFPI had a positive operating cash flow in the past year.
In the past 5 years UFPI has always been profitable.
In the past 5 years UFPI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UFPI (11.50%) is better than 69.05% of its industry peers.
UFPI has a Return On Equity (14.64%) which is comparable to the rest of the industry.
UFPI has a Return On Invested Capital of 12.46%. This is in the better half of the industry: UFPI outperforms 66.67% of its industry peers.
UFPI had an Average Return On Invested Capital over the past 3 years of 16.31%. This is above the industry average of 12.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 14.64% | ||
| ROIC | 12.46% |
ROA(3y)13.3%
ROA(5y)13.17%
ROE(3y)18.2%
ROE(5y)19.45%
ROIC(3y)16.31%
ROIC(5y)17.19%
1.3 Margins
With a Profit Margin value of 5.79%, UFPI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
UFPI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.16%, UFPI is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of UFPI has grown nicely.
Looking at the Gross Margin, with a value of 18.13%, UFPI is doing worse than 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of UFPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 5.79% | ||
| GM | 18.13% |
OM growth 3Y-4.27%
OM growth 5Y6.06%
PM growth 3Y-0.06%
PM growth 5Y8.59%
GM growth 3Y4.22%
GM growth 5Y3.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UFPI is still creating some value.
UFPI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UFPI has been reduced compared to 5 years ago.
UFPI has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UFPI is 0.78, which is an excellent value as it means it would take UFPI, only 0.78 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.78, UFPI belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
UFPI has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
UFPI has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. UFPI outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC15.5%
2.3 Liquidity
UFPI has a Current Ratio of 4.96. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
UFPI has a better Current ratio (4.96) than 90.48% of its industry peers.
UFPI has a Quick Ratio of 3.44. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.44, UFPI belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.96 | ||
| Quick Ratio | 3.44 |
3. Growth
3.1 Past
UFPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.00%.
UFPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.40% yearly.
Looking at the last year, UFPI shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
Measured over the past years, UFPI shows a quite strong growth in Revenue. The Revenue has been growing by 8.54% on average per year.
EPS 1Y (TTM)-24%
EPS 3Y-7.63%
EPS 5Y18.4%
EPS Q2Q%-33.67%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-8.33%
Revenue growth 5Y8.54%
Sales Q2Q%-2.65%
3.2 Future
UFPI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.52% yearly.
Based on estimates for the next years, UFPI will show a small growth in Revenue. The Revenue will grow by 3.03% on average per year.
EPS Next Y-9.67%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
EPS Next 5YN/A
Revenue Next Year-0.52%
Revenue Next 2Y2.03%
Revenue Next 3Y3.03%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.66, which indicates a correct valuation of UFPI.
69.05% of the companies in the same industry are more expensive than UFPI, based on the Price/Earnings ratio.
UFPI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 13.73, UFPI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 69.05% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, UFPI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFPI is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 69.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
UFPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y1.44%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
UFPI has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
UFPI's Dividend Yield is rather good when compared to the industry average which is at 1.20. UFPI pays more dividend than 80.95% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, UFPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of UFPI is nicely growing with an annual growth rate of 26.94%!
UFPI has paid a dividend for at least 10 years, which is a reliable track record.
UFPI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)26.94%
Div Incr Years12
Div Non Decr Years31
5.3 Sustainability
17.12% of the earnings are spent on dividend by UFPI. This is a low number and sustainable payout ratio.
The dividend of UFPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.12%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
95.67
-1.93 (-1.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.32%
Inst Owner Change1.99%
Ins Owners2.08%
Ins Owner Change0.74%
Market Cap5.78B
Analysts80
Price Target122.4 (27.94%)
Short Float %1.81%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend1.32
Dividend Growth(5Y)26.94%
DP17.12%
Div Incr Years12
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.92%
Min EPS beat(2)-18.56%
Max EPS beat(2)-11.27%
EPS beat(4)0
Avg EPS beat(4)-11.41%
Min EPS beat(4)-18.56%
Max EPS beat(4)-0.81%
EPS beat(8)1
Avg EPS beat(8)-4.85%
EPS beat(12)5
Avg EPS beat(12)2.02%
EPS beat(16)9
Avg EPS beat(16)14.51%
Revenue beat(2)1
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)0.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)0.69%
Revenue beat(8)1
Avg Revenue beat(8)-6.09%
Revenue beat(12)3
Avg Revenue beat(12)-2.62%
Revenue beat(16)7
Avg Revenue beat(16)1.97%
PT rev (1m)0%
PT rev (3m)-9.77%
EPS NQ rev (1m)-3.25%
EPS NQ rev (3m)-8.79%
EPS NY rev (1m)-13.5%
EPS NY rev (3m)-15.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 13.73 | ||
| P/S | 0.7 | ||
| P/FCF | 19.25 | ||
| P/OCF | 10.49 | ||
| P/B | 1.77 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)6.11
EY6.39%
EPS(NY)6.97
Fwd EY7.28%
FCF(TTM)4.97
FCFY5.2%
OCF(TTM)9.12
OCFY9.53%
SpS136.58
BVpS53.97
TBVpS45.75
PEG (NY)N/A
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 14.64% | ||
| ROCE | 16.16% | ||
| ROIC | 12.46% | ||
| ROICexc | 16.74% | ||
| ROICexgc | 20.47% | ||
| OM | 7.16% | ||
| PM (TTM) | 5.79% | ||
| GM | 18.13% | ||
| FCFM | 3.64% |
ROA(3y)13.3%
ROA(5y)13.17%
ROE(3y)18.2%
ROE(5y)19.45%
ROIC(3y)16.31%
ROIC(5y)17.19%
ROICexc(3y)22.4%
ROICexc(5y)22.4%
ROICexgc(3y)28.31%
ROICexgc(5y)28.33%
ROCE(3y)21.16%
ROCE(5y)22.34%
ROICexcg growth 3Y-15.45%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y-15.65%
ROICexc growth 5Y2.29%
OM growth 3Y-4.27%
OM growth 5Y6.06%
PM growth 3Y-0.06%
PM growth 5Y8.59%
GM growth 3Y4.22%
GM growth 5Y3.5%
F-Score7
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 165.8% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.24% | ||
| Profit Quality | 62.9% | ||
| Current Ratio | 4.96 | ||
| Quick Ratio | 3.44 | ||
| Altman-Z | N/A |
F-Score7
WACC15.5%
ROIC/WACC0.8
Cap/Depr(3y)148.93%
Cap/Depr(5y)144.72%
Cap/Sales(3y)2.6%
Cap/Sales(5y)2.26%
Profit Quality(3y)120.39%
Profit Quality(5y)106.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-24%
EPS 3Y-7.63%
EPS 5Y18.4%
EPS Q2Q%-33.67%
EPS Next Y-9.67%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
EPS Next 5YN/A
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-8.33%
Revenue growth 5Y8.54%
Sales Q2Q%-2.65%
Revenue Next Year-0.52%
Revenue Next 2Y2.03%
Revenue Next 3Y3.03%
Revenue Next 5YN/A
EBIT growth 1Y-4.53%
EBIT growth 3Y-12.25%
EBIT growth 5Y15.12%
EBIT Next Year21.72%
EBIT Next 3Y14.79%
EBIT Next 5YN/A
FCF growth 1Y-65.07%
FCF growth 3Y4.33%
FCF growth 5Y9.19%
OCF growth 1Y-47.04%
OCF growth 3Y7.83%
OCF growth 5Y12.97%