Patrick Industries, Inc.
Patrick Industries, Inc. Fundamental Analysis
Patrick Industries, Inc. (PATK) shows moderate financial fundamentals with a PE ratio of 29.47, profit margin of 3.42%, and ROE of 11.65%. The company generates $4.1B in annual revenue with moderate year-over-year growth of 7.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PATK's fundamental strength across five key dimensions:
Efficiency Score
WeakPATK struggles to generate sufficient returns from assets.
Valuation Score
WeakPATK trades at a premium to fair value.
Growth Score
ModeratePATK shows steady but slowing expansion.
Financial Health Score
ModeratePATK shows balanced financial health with some risks.
Profitability Score
WeakPATK struggles to sustain strong margins.
Key Financial Metrics
Is PATK Expensive or Cheap?
P/E Ratio
PATK trades at 29.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PATK's PEG of 2.43 indicates potential overvaluation.
Price to Book
The market values Patrick Industries, Inc. at 3.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.86 times EBITDA. This is generally considered low.
How Well Does PATK Make Money?
Net Profit Margin
For every $100 in sales, Patrick Industries, Inc. keeps $3.42 as profit after all expenses.
Operating Margin
Core operations generate 6.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.65 in profit for every $100 of shareholder equity.
ROA
Patrick Industries, Inc. generates $4.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Patrick Industries, Inc. generates limited operating cash flow of $338.46M, signaling weaker underlying cash strength.
Free Cash Flow
Patrick Industries, Inc. produces free cash flow of $253.26M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.61 in free cash annually.
FCF Yield
PATK converts 6.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PATK Stacks Against Its Sector Peers
| Metric | PATK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.47 | 24.84 | Worse (Expensive) |
| ROE | 11.65% | 1142.00% | Weak |
| Net Margin | 3.42% | 647.00% | Weak |
| Debt/Equity | 1.39 | 0.70 | Weak (High Leverage) |
| Current Ratio | 2.51 | 3.93 | Strong Liquidity |
| ROA | 4.39% | -8853.00% (disorted) | Weak |
PATK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Patrick Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.56%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
9.40%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
20.27%
Industry Style: Cyclical, Growth, Discretionary
High Growth