UFP INDUSTRIES INC (UFPI)
US90278Q1085 - Common Stock
Overall UFPI gets a fundamental rating of 6 out of 10. We evaluated UFPI against 43 industry peers in the Building Products industry. UFPI gets an excellent profitability rating and is at the same time showing great financial health properties. UFPI has a decent growth rate and is not valued too expensively.
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.
UFPI had positive earnings in each of the past 5 years.
UFPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UFPI (12.00%) is better than 72.09% of its industry peers.
With a Return On Equity value of 15.71%, UFPI perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.23%, UFPI is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
UFPI had an Average Return On Invested Capital over the past 3 years of 20.14%. This is significantly above the industry average of 13.68%.
The last Return On Invested Capital (13.23%) for UFPI is well below the 3 year average (20.14%), which needs to be investigated, but indicates that UFPI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 15.71% | ||
| ROIC | 13.23% |
ROA(3y)15.42%
ROA(5y)13.1%
ROE(3y)22.82%
ROE(5y)19.79%
ROIC(3y)20.14%
ROIC(5y)17.31%
1.3 Margins
UFPI's Profit Margin of 6.96% is in line compared to the rest of the industry. UFPI outperforms 46.51% of its industry peers.
In the last couple of years the Profit Margin of UFPI has grown nicely.
The Operating Margin of UFPI (8.79%) is worse than 65.12% of its industry peers.
In the last couple of years the Operating Margin of UFPI has grown nicely.
Looking at the Gross Margin, with a value of 19.71%, UFPI is doing worse than 76.74% 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 | 8.79% | ||
| PM (TTM) | 6.96% | ||
| GM | 19.71% |
OM growth 3Y9.08%
OM growth 5Y14.91%
PM growth 3Y13.34%
PM growth 5Y15.94%
GM growth 3Y8.18%
GM growth 5Y8.28%
2. Health
2.1 Basic Checks
UFPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UFPI has about the same amount of shares outstanding.
UFPI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UFPI has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UFPI is 0.35, which is an excellent value as it means it would take UFPI, only 0.35 years of fcf income to pay off all of its debts.
UFPI has a better Debt to FCF ratio (0.35) than 81.40% 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 Debt to Equity ratio of 0.07. This is in the better half of the industry: UFPI outperforms 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.18
WACC11.2%
2.3 Liquidity
UFPI has a Current Ratio of 4.79. This indicates that UFPI is financially healthy and has no problem in meeting its short term obligations.
UFPI has a Current ratio of 4.79. This is amongst the best in the industry. UFPI outperforms 88.37% of its industry peers.
UFPI has a Quick Ratio of 3.37. 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 3.37, UFPI belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.79 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
UFPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.36%.
UFPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.06% yearly.
Looking at the last year, UFPI shows a very negative growth in Revenue. The Revenue has decreased by -21.49% in the last year.
The Revenue has been growing by 9.96% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.36%
EPS 3Y25.37%
EPS 5Y28.06%
EPS growth Q2Q-1.01%
Revenue 1Y (TTM)-21.49%
Revenue growth 3Y11.88%
Revenue growth 5Y9.96%
Revenue growth Q2Q-10.07%
3.2 Future
The Earnings Per Share is expected to grow by 2.66% on average over the next years.
UFPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
EPS Next Y-2.55%
EPS Next 2Y3.32%
EPS Next 3Y2.66%
EPS Next 5YN/A
Revenue Next Year-2.11%
Revenue Next 2Y1.45%
Revenue Next 3Y1.49%
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 14.69, which indicates a correct valuation of UFPI.
Based on the Price/Earnings ratio, UFPI is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.43, UFPI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.72, the valuation of UFPI can be described as correct.
69.77% of the companies in the same industry are more expensive than UFPI, based on the Price/Forward Earnings ratio.
UFPI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
UFPI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UFPI is cheaper than 81.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UFPI is valued a bit cheaper than 79.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
The decent profitability rating of UFPI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y3.32%
EPS Next 3Y2.66%
5. Dividend
5.1 Amount
UFPI has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
UFPI's Dividend Yield is a higher than the industry average which is at 1.16.
With a Dividend Yield of 1.11, UFPI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
On average, the dividend of UFPI grows each year by 25.06%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)25.06%
Div Incr Years11
Div Non Decr Years19
5.3 Sustainability
UFPI pays out 14.92% of its income as dividend. This is a sustainable payout ratio.
The dividend of UFPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.92%
EPS Next 2Y3.32%
EPS Next 3Y2.66%
UFP INDUSTRIES INC
NASDAQ:UFPI (5/10/2024, 7:24:46 PM)
After market: 118.08 0 (0%)118.08
-0.93 (-0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap7.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 15.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.79% | ||
| PM (TTM) | 6.96% | ||
| GM | 19.71% | ||
| 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 Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.79 | ||
| Quick Ratio | 3.37 | ||
| 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)-19.36%
EPS 3Y25.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.49%
Revenue growth 3Y11.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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