UFP INDUSTRIES INC (UFPI) Stock Fundamental Analysis
NASDAQ:UFPI - Nasdaq - US90278Q1085 - Common Stock - Currency: USD
Overall UFPI gets a fundamental rating of 6 out of 10. We evaluated UFPI against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
UFPI had positive earnings in the past year.
In the past year UFPI had a positive cash flow from operations.
UFPI had positive earnings in each of the past 5 years.
In the past 5 years UFPI always reported a positive cash flow from operatings.
1.2 Ratios
UFPI's Return On Assets of 11.50% is fine compared to the rest of the industry. UFPI outperforms 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 better Return On Invested Capital (12.46%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UFPI is above the industry average of 12.98%.
| 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 40.48% of the companies in the same industry.
UFPI's Profit Margin has improved in the last couple of years.
UFPI's Operating Margin of 7.16% is on the low side compared to the rest of the industry. UFPI is outperformed by 71.43% of its industry peers.
UFPI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.13%, UFPI is doing worse than 88.10% of the companies in the same industry.
UFPI's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UFPI is creating some value.
UFPI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UFPI has less shares outstanding
The debt/assets ratio for UFPI has been reduced compared to a year ago.
2.2 Solvency
UFPI has a debt to FCF ratio of 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
UFPI's Debt to FCF ratio of 0.78 is amongst the best of the industry. UFPI outperforms 83.33% of its industry peers.
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 better Debt to Equity ratio (0.07) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC9.79%
2.3 Liquidity
A Current Ratio of 4.96 indicates that UFPI has no problem at all paying 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 92.86% 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%.
Measured over the past years, UFPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.40% on average per year.
Looking at the last year, UFPI shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
The Revenue has been growing by 8.54% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.52% on average over the next years.
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.
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 16.08, the valuation of UFPI can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, UFPI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.10, the valuation of UFPI can be described as correct.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.94. UFPI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UFPI indicates a rather cheap valuation: UFPI is cheaper than 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UFPI is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.91 | ||
| EV/EBITDA | 7.32 |
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)0.87
EPS Next 2Y1.44%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
UFPI has a Yearly Dividend Yield of 1.38%. 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 1.16. UFPI pays more dividend than 80.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, UFPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
On average, the dividend of UFPI grows each year by 26.94%, which is quite nice.
UFPI has been paying a dividend for at least 10 years, so it has a reliable track record.
UFPI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
98.24
-3.05 (-3.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.32%
Inst Owner Change1.94%
Ins Owners2.08%
Ins Owner Change-0.18%
Market Cap5.97B
Analysts80
Price Target122.4 (24.59%)
Short Float %2.41%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)-9.77%
PT rev (3m)-11.44%
EPS NQ rev (1m)-8.79%
EPS NQ rev (3m)-12.22%
EPS NY rev (1m)-13.5%
EPS NY rev (3m)-18.23%
Revenue NQ rev (1m)-2.77%
Revenue NQ rev (3m)-4.44%
Revenue NY rev (1m)-3.05%
Revenue NY rev (3m)-3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 14.1 | ||
| P/S | 0.72 | ||
| P/FCF | 19.91 | ||
| P/OCF | 10.85 | ||
| P/B | 1.83 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)6.11
EY6.22%
EPS(NY)6.97
Fwd EY7.09%
FCF(TTM)4.94
FCFY5.02%
OCF(TTM)9.05
OCFY9.21%
SpS135.61
BVpS53.59
TBVpS45.43
PEG (NY)N/A
PEG (5Y)0.87
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
WACC9.79%
ROIC/WACC1.27
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 Year37.92%
EBIT Next 3YN/A
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%