UFP INDUSTRIES INC (UFPI) Stock Fundamental Analysis
NASDAQ:UFPI - Nasdaq - US90278Q1085 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to UFPI. UFPI was compared to 41 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.
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
With a decent Return On Assets value of 11.50%, UFPI is doing good in the industry, outperforming 65.85% of the companies in the same industry.
The Return On Equity of UFPI (14.64%) 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 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UFPI is above the industry average of 12.79%.
| 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
Looking at the Profit Margin, with a value of 5.79%, UFPI is in line with its industry, outperforming 43.90% of the companies in the same industry.
UFPI's Profit Margin has improved in the last couple of years.
The Operating Margin of UFPI (7.16%) is worse than 70.73% of its industry peers.
UFPI's Operating Margin has improved in the last couple of years.
UFPI's Gross Margin of 18.13% is on the low side compared to the rest of the industry. UFPI is outperformed by 82.93% of its industry peers.
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
UFPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UFPI has less shares outstanding than it did 1 year ago.
UFPI has less 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
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 87.80% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that UFPI is not too dependend on debt financing.
The Debt to Equity ratio of UFPI (0.07) is better than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.23
WACC10.15%
2.3 Liquidity
A Current Ratio of 4.96 indicates that UFPI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.96, UFPI belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
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.
The Quick ratio of UFPI (3.44) is better than 95.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.96 | ||
| Quick Ratio | 3.44 |
3. Growth
3.1 Past
The earnings per share for UFPI have decreased strongly by -24.00% in the last year.
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.
UFPI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.24%.
UFPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.54% yearly.
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.
UFPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
EPS Next Y-9.63%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
UFPI is valuated rather expensively with a Price/Earnings ratio of 17.50.
Based on the Price/Earnings ratio, UFPI is valued a bit cheaper than 68.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of UFPI to the average of the S&P500 Index (27.41), we can say UFPI is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.35, which indicates a correct valuation of UFPI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UFPI indicates a somewhat cheap valuation: UFPI is cheaper than 68.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, UFPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFPI is valued cheaper than 90.24% of the companies in the same industry.
UFPI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UFPI is cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.51 | ||
| EV/EBITDA | 7.72 |
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)0.95
EPS Next 2Y1.44%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, UFPI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.12, UFPI pays a better dividend. On top of this UFPI pays more dividend than 80.49% of the companies listed in the same industry.
With a Dividend Yield of 1.29, UFPI pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
UFPI pays out 17.12% of its income as dividend. This is a sustainable payout ratio.
UFPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.12%
EPS Next 2Y1.44%
EPS Next 3Y7.52%
106.9
-1.59 (-1.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners88.83%
Inst Owner Change0%
Ins Owners1.68%
Ins Owner Change0.74%
Market Cap6.46B
Analysts80
Price Target122.4 (14.5%)
Short Float %2.12%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)0%
EPS NQ rev (3m)-8.79%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-13.46%
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 | 17.5 | ||
| Fwd PE | 15.35 | ||
| P/S | 0.78 | ||
| P/FCF | 21.51 | ||
| P/OCF | 11.73 | ||
| P/B | 1.98 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)6.11
EY5.72%
EPS(NY)6.97
Fwd EY6.52%
FCF(TTM)4.97
FCFY4.65%
OCF(TTM)9.12
OCFY8.53%
SpS136.58
BVpS53.97
TBVpS45.75
PEG (NY)N/A
PEG (5Y)0.95
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
WACC10.15%
ROIC/WACC1.23
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-9.63%
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%