UFP Industries, Inc.
UFP Industries, Inc. Fundamental Analysis
UFP Industries, Inc. (UFPI) shows weak financial fundamentals with a PE ratio of 18.30, profit margin of 4.27%, and ROE of 8.44%. The company generates $6.2B in annual revenue with weak year-over-year growth of -4.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UFPI's fundamental strength across five key dimensions:
Efficiency Score
WeakUFPI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUFPI trades at attractive valuation levels.
Growth Score
WeakUFPI faces weak or negative growth trends.
Financial Health Score
ExcellentUFPI maintains a strong and stable balance sheet.
Profitability Score
WeakUFPI struggles to sustain strong margins.
Key Financial Metrics
Is UFPI Expensive or Cheap?
P/E Ratio
UFPI trades at 18.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UFPI's PEG of -0.73 indicates potential undervaluation.
Price to Book
The market values UFP Industries, Inc. at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.21 times EBITDA. This signals the market has high growth expectations.
How Well Does UFPI Make Money?
Net Profit Margin
For every $100 in sales, UFP Industries, Inc. keeps $4.27 as profit after all expenses.
Operating Margin
Core operations generate 5.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.44 in profit for every $100 of shareholder equity.
ROA
UFP Industries, Inc. generates $6.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UFP Industries, Inc. generates limited operating cash flow of $552.26M, signaling weaker underlying cash strength.
Free Cash Flow
UFP Industries, Inc. produces free cash flow of $300.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.28 in free cash annually.
FCF Yield
UFPI converts 6.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How UFPI Stacks Against Its Sector Peers
| Metric | UFPI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.30 | 23.95 | Better (Cheaper) |
| ROE | 8.44% | 900.00% | Weak |
| Net Margin | 4.27% | -108809.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 4.64 | 6.82 | Strong Liquidity |
| ROA | 6.55% | -10144.00% (disorted) | Weak |
UFPI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UFP Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.61%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
21.38%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
64.80%
Industry Style: Cyclical, Commodity, Value
High Growth