NasdaqGS:PATK

Stock Analysis Report

Executive Summary

Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States and Canada.

Snowflake

Fundamentals

Very undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Patrick Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.1%

NasdaqGS:PATK

0.7%

US Building

0.8%

US Market


1 Year Return

-35.2%

NasdaqGS:PATK

3.5%

US Building

1.9%

US Market

PATK underperformed the Building industry which returned 3.2% over the past year.

PATK underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

PATKIndustryMarket
7 Day11.1%0.7%0.8%
30 Day10.7%4.8%3.4%
90 Day-9.1%6.2%2.1%
1 Year-35.2%-35.2%5.3%3.5%4.2%1.9%
3 Year8.3%8.3%27.2%16.5%46.7%37.2%
5 Year131.4%131.4%54.7%35.5%62.3%44.5%

Price Volatility Vs. Market

How volatile is Patrick Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Patrick Industries undervalued based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Patrick Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Patrick Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Patrick Industries is good value based on earnings compared to the US Building industry average.

Patrick Industries is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Patrick Industries is good value based on expected growth next year.


Price Based on Value of Assets

Patrick Industries is good value based on assets compared to the US Building industry average.


Next Steps

Future Growth

How is Patrick Industries expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Patrick Industries's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Patrick Industries's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

Patrick Industries's revenue growth is positive but not above the United States of America market average.

Patrick Industries's earnings growth is expected to exceed the United States of America market average.

Patrick Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Patrick Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Patrick Industries performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Patrick Industries has delivered over 20% year on year earnings growth in the past 5 years.

Patrick Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Patrick Industries's 1-year earnings growth is negative, it can't be compared to the US Building industry average.


Return on Equity

Whilst Patrick Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Patrick Industries used its assets more efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Patrick Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Patrick Industries's financial position?


Financial Position Analysis

Patrick Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Patrick Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Patrick Industries's level of debt (127.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (105% vs 127.9% today).

Debt is well covered by operating cash flow (34.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is Patrick Industries's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Patrick Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Patrick Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Patrick Industries has not reported any payouts.

Unable to verify if Patrick Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Patrick Industries has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Patrick Industries's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Patrick Industries's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Todd Cleveland (51yo)

10.6yrs

Tenure

US$6,859,806

Compensation

Mr. Todd M. Cleveland has been the Chairman of Patrick Industries Inc. since May 16, 2018 and has been its Chief Executive Officer since February 1, 2009. Mr. Cleveland served as the President of Patrick I ...


CEO Compensation Analysis

Todd's remuneration is higher than average for companies of similar size in United States of America.

Todd's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

49.5yo

Average Age

The tenure for the Patrick Industries management team is about average.


Board Age and Tenure

1.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Patrick Industries board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Patrick Industries individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$390,00020 Aug 19
M. Welch
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$39.00
SellUS$2,102,27118 Jun 19
Tontine Capital Management LLC
EntityCompany
Shares45,254
Max PriceUS$46.70
SellUS$505,98830 Apr 19
Walter Wells
EntityIndividual
Shares10,000
Max PriceUS$50.60
SellUS$45,34504 Mar 19
Walter Wells
EntityIndividual
Shares1,000
Max PriceUS$45.34
SellUS$6,746,85319 Dec 18
Tontine Capital Management LLC
EntityCompany
Shares222,347
Max PriceUS$30.69
BuyUS$303,50017 Dec 18
M. Welch
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$30.35
BuyUS$925,61517 Dec 18
Todd Cleveland
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares30,000
Max PriceUS$31.72
SellUS$3,918,54615 Dec 18
Tontine Capital Management LLC
EntityCompany
Shares121,138
Max PriceUS$32.81
BuyUS$73,52013 Dec 18
M. Welch
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,156
Max PriceUS$34.10
SellUS$358,49913 Dec 18
Tontine Capital Management LLC
EntityCompany
Shares10,259
Max PriceUS$35.28
SellUS$107,87208 Dec 18
Courtney Blosser
EntityIndividual
Role
Head of Human Resources
Executive VP of Human Resources & Chief Human Resources Officer
Shares2,993
Max PriceUS$36.05
BuyUS$134,53403 Nov 18
M. Welch
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,080
Max PriceUS$43.68

Ownership Breakdown


Management Team

  • Andy Nemeth (50yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$2.78m
  • Todd Cleveland (51yo)

    Chairman & CEO

    • Tenure: 10.6yrs
    • Compensation: US$6.86m
  • Jeff Rodino (49yo)

    Executive VP of Sales & Chief Sales Officer

    • Tenure: 3yrs
    • Compensation: US$1.80m
  • Courtney Blosser (53yo)

    Executive VP of Human Resources & Chief Human Resources Officer

    • Tenure: 3.3yrs
    • Compensation: US$1.10m
  • Julie Kotowski

    Director of Financial Reporting & Investor Relations

    • Tenure: 0yrs
  • Josh Boone (40yo)

    VP of Finance

    • Tenure: 3.7yrs
    • Compensation: US$1.29m
  • Kip Ellis (45yo)

    Executive VP of Operations & COO

    • Tenure: 3yrs
    • Compensation: US$1.91m

Board Members

  • M. Welch (59yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$164.53k
  • Denis Suggs (53yo)

    Director

    • Tenure: 0.5yrs
  • Todd Cleveland (51yo)

    Chairman & CEO

    • Tenure: 10.6yrs
    • Compensation: US$6.86m
  • Joe Cerulli (60yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$162.53k
  • John Forbes (59yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$166.53k
  • Derrick Mayes (45yo)

    Director

    • Tenure: 0.5yrs
  • Michael Kitson (61yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$169.53k
  • Pam Klyn (48yo)

    Director

    • Tenure: 0.5yrs

Company Information

Patrick Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Patrick Industries, Inc.
  • Ticker: PATK
  • Exchange: NasdaqGS
  • Founded: 1959
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$1.023b
  • Shares outstanding: 23.87m
  • Website: https://www.patrickind.com

Number of Employees


Location

  • Patrick Industries, Inc.
  • 107 West Franklin Street
  • PO Box 638
  • Elkhart
  • Indiana
  • 46515
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PATKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1971

Biography

Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States and Canada. Its ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:50
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.