UFP Industries (UFPI): Has the Share Price Drop Opened Up a Valuation Opportunity?

UFP Industries (UFPI) has quietly slipped this year, with the stock down about 17% year to date and roughly 29% over the past year, even as earnings and revenue keep growing.

See our latest analysis for UFP Industries.

That pullback mirrors a broader reset in building products names, as investors reassess how much they are willing to pay for cyclical earnings, even while UFP Industries continues to post steady revenue and profit growth that could eventually re rate the share price.

If UFP Industries has you rethinking where the next leg of growth might come from, it could be worth exploring fast growing stocks with high insider ownership as a way to spot other compelling ideas.

With the share price lagging despite rising earnings and a sizeable gap to analyst targets, investors now face a key question: is UFP Industries quietly undervalued, or is the market already baking in its next leg of growth?

Most Popular Narrative Narrative: 18.1% Undervalued

With UFP Industries closing at $92.73 versus a narrative fair value near $113, the storyline leans toward mispriced strength driven by long term structural shifts.

Secular shifts toward prefabrication/modular construction and resilient building practices are increasing demand for engineered components and specialty products, strengthening UFP's long-term growth runways and reducing reliance on traditional, more volatile lumber segments. This supports higher, more stable margins.

Read the complete narrative.

Curious how modest top line growth, rising margins, and shrinking share count can still point to upside from here? The full narrative unpacks the math step by step.

Result: Fair Value of $113.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued softness in housing and construction demand, or slower adoption of higher margin, engineered products, could easily derail that upside narrative.

Find out about the key risks to this UFP Industries narrative.

Another Angle on Value

While the narrative fair value suggests upside, our DCF model paints a more cautious picture. It points to a fair value of $59.17, below the current $92.73 share price, and implies UFP Industries may be overvalued. Which story do you think better fits the next few years?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out UFP Industries for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 920 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own UFP Industries Narrative

If this view does not quite match your own or you would rather dive into the numbers yourself, you can craft a personal take in just a few minutes, Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding UFP Industries.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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