UFP Industries (NasdaqGS:UFPI) - Share price, News & Analysis

Q: What is the Fair Price of UFPI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

UFPI ($67.35) is trading below our estimate of [[fair value]] ($123.03)

UFPI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	4/6

UFPI Stock Overview

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia.

Rewards

Trading at 45.3% below our estimate of its fair value

Earnings grew by 100.2% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 3.1% per year for the next 3 years

Significant insider selling over the past 3 months

UFP Industries Competitors

Simpson Manufacturing

NYSE:SSD

US$4.2b

Trex Company

NYSE:TREX

US$6.6b

Advanced Drainage Systems

NYSE:WMS

US$7.5b

Armstrong World Industries

NYSE:AWI

US$3.6b

Price History & Performance

Summary of all time highs, changes and price drops for UFP Industries
Historical stock prices
Current Share Price	US$67.35
52 Week High	US$94.80
52 Week Low	US$64.13
Beta	1.4
1 Month Change	-14.64%
3 Month Change	-16.80%
1 Year Change	-7.40%
3 Year Change	76.96%
5 Year Change	131.42%
Change since IPO	2,549.84%

Recent News & Updates

Jun 26

UFP Industries: An Attractive Play Even If Financial Performance Worsens

UFP Industries is an interesting construction-oriented business that has done incredibly well to grow in recent years. The company's top and bottom lines continue to fare well this year, but investors are right to worry about a potential pullback in industry conditions. If the industry does not weaken, shares seem to offer attractive upside, while even if it does, the firm will likely fare quite well.

Jun 22

Does UFP Industries (NASDAQ:UFPI) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 30

Are Investors Undervaluing UFP Industries, Inc. (NASDAQ:UFPI) By 36%?

How far off is UFP Industries, Inc. ( NASDAQ:UFPI ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

	UFPI	US Building	US Market
7D	3.4%	5.3%	6.6%
1Y	-7.4%	-24.3%	-18.4%

Return vs Industry: UFPI exceeded the US Building industry which returned -24.3% over the past year.

Return vs Market: UFPI exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is UFPI's price volatile compared to industry and market?
UFPI volatility
UFPI Average Weekly Movement	6.0%
Building Industry Average Movement	6.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: UFPI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: UFPI's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1955	15,000	Matt Missad	https://www.ufpi.com

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia. It operates through Retail, Industrial, and Construction segments. The Retail segment offers preserved and unpreserved dimensional lumber; and outdoor living products, including wood and wood composite decking and related accessories, decorative lawn, garden, craft, and hobby products.

UFP Industries Fundamentals Summary

How do UFP Industries's earnings and revenue compare to its market cap?
UFPI fundamental statistics
Market Cap	US$4.17b
Earnings (TTM)	US$601.06m
Revenue (TTM)	US$9.30b

6.9x

P/E Ratio

0.4x

P/S Ratio

Is UFPI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UFPI income statement (TTM)
Revenue	US$9.30b
Cost of Revenue	US$7.70b
Gross Profit	US$1.60b
Other Expenses	US$997.72m
Earnings	US$601.06m

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.70
Gross Margin	17.19%
Net Profit Margin	6.46%
Debt/Equity Ratio	21.8%

How did UFPI perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

7%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is UFPI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UFPI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for UFPI. This is calculated by dividing UFPI's market cap by their current preferred multiple.
What is UFPI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.17b

UFPI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	4.9x
PEG Ratio	-2.2x

Price to Earnings Ratio vs Peers

How does UFPI's PE Ratio compare to its peers?

UFPI PE Ratio vs Peers

The above table shows the PE ratio for UFPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.4x
SSD Simpson Manufacturing	13.6x	2.9%	US$4.2b
TREX Trex Company	28.6x	11.7%	US$6.6b
WMS Advanced Drainage Systems	32.5x	34.8%	US$7.5b
AWI Armstrong World Industries	18.9x	12.8%	US$3.6b
UFPI UFP Industries	6.9x	-3.1%	US$4.2b

Forward PE

Price-To-Earnings vs Peers: UFPI is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does UFPI's PE Ratio compare vs other companies in the US Building Industry?

Price-To-Earnings vs Industry: UFPI is good value based on its Price-To-Earnings Ratio (6.9x) compared to the US Building industry average (16.2x)

Price to Earnings Ratio vs Fair Ratio

What is UFPI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UFPI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.9x
Fair PE Ratio	14.2x

Price-To-Earnings vs Fair Ratio: UFPI is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).

Share Price vs Fair Value

What is the Fair Price of UFPI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UFPI ($67.35) is trading below our estimate of fair value ($123.03)

Significantly Below Fair Value: UFPI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: UFPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is UFP Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-3.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: UFPI's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: UFPI's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: UFPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UFPI's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: UFPI's revenue is forecast to decline over the next 3 years (-1.9% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if UFPI's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has UFP Industries performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

35.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UFPI has high quality earnings.

Growing Profit Margin: UFPI's current net profit margins (6.5%) are higher than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: UFPI's earnings have grown significantly by 35.9% per year over the past 5 years.

Accelerating Growth: UFPI's earnings growth over the past year (100.2%) exceeds its 5-year average (35.9% per year).

Earnings vs Industry: UFPI earnings growth over the past year (100.2%) exceeded the Building industry 27.3%.

Return on Equity

High ROE: UFPI's Return on Equity (28.9%) is considered high.

Discover strong past performing companies

Financial Health

How is UFP Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: UFPI's short term assets ($2.5B) exceed its short term liabilities ($903.2M).

Long Term Liabilities: UFPI's short term assets ($2.5B) exceed its long term liabilities ($552.6M).

Debt to Equity History and Analysis

Debt Level: UFPI's net debt to equity ratio (16.9%) is considered satisfactory.

Reducing Debt: UFPI's debt to equity ratio has reduced from 30% to 21.8% over the past 5 years.

Debt Coverage: UFPI's debt is well covered by operating cash flow (96%).

Interest Coverage: UFPI's interest payments on its debt are well covered by EBIT (52.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UFPI's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: UFPI's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: UFPI's dividends per share have been stable in the past 10 years.

Growing Dividend: UFPI's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7%), UFPI's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15.7%), UFPI's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

11.4yrs

Average management tenure

CEO

Matt Missad (60 yo)

10.92yrs

Tenure

US$9,757,808

Compensation

Mr. Matthew Jon Missad, also known as Matt, CPA, has been the Chief Executive Officer of UFP Industries, Inc. (formerly known as Universal Forest Products, Inc.) since July 13, 2011. He served as the Presi...

CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD9.76M) is above average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Matt's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: UFPI's management team is seasoned and experienced (11.4 years average tenure).

Board Members

Experienced Board: UFPI's board of directors are considered experienced (8.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: UFPI insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/26
Annual Earnings	2021/12/25