NasdaqGS:UFPI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Universal Forest Products's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

NasdaqGS:UFPI

2.4%

US Building

1.1%

US Market


1 Year Return

9.2%

NasdaqGS:UFPI

3.2%

US Building

2.1%

US Market

UFPI outperformed the Building industry which returned 3.2% over the past year.

UFPI outperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

UFPIIndustryMarket
7 Day5.0%2.4%1.1%
30 Day0.6%5.4%3.7%
90 Day10.2%7.0%2.3%
1 Year10.5%9.2%5.0%3.2%4.4%2.1%
3 Year25.1%21.3%27.7%17.0%47.0%37.4%
5 Year192.1%175.9%54.4%35.2%61.6%43.8%

Price Volatility Vs. Market

How volatile is Universal Forest Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Universal Forest Products undervalued based on future cash flows and its price relative to the stock market?

15.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Universal Forest Products's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Universal Forest Products's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Universal Forest Products is good value based on earnings compared to the US Building industry average.

Universal Forest Products is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Universal Forest Products is poor value based on expected growth next year.


Price Based on Value of Assets

Universal Forest Products is good value based on assets compared to the US Building industry average.


Next Steps

Future Growth

How is Universal Forest Products expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Universal Forest Products's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Universal Forest Products's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

Universal Forest Products's revenue growth is positive but not above the United States of America market average.

Universal Forest Products's earnings growth is positive but not above the United States of America market average.

Universal Forest Products'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 Universal Forest Products will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Universal Forest Products performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Universal Forest Products has delivered over 20% year on year earnings growth in the past 5 years.

Universal Forest Products's 1-year earnings growth is less than its 5-year average (13.9% vs 21.6%)

Universal Forest Products's earnings growth has exceeded the US Building industry average in the past year (13.9% vs 7.7%).


Return on Equity

Universal Forest Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Universal Forest Products used its assets more efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Universal Forest Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Universal Forest Products's financial position?


Financial Position Analysis

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

Universal Forest Products's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Universal Forest Products's level of debt (18%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (15.9% vs 18% today).

Debt is well covered by operating cash flow (105.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 32.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.2x debt.


Next Steps

Dividend

What is Universal Forest Products's current dividend yield, its reliability and sustainability?

1.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Universal Forest Products's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Universal Forest Products's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (6.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Universal Forest Products's salary, the management and board of directors tenure and is there insider trading?

10.7yrs

Average management tenure


CEO

Matt Missad (58yo)

8.2yrs

Tenure

US$3,774,350

Compensation

Mr. Matthew Jon Missad, also known as Matt, CPA, has been the Chief Executive Officer of Universal Forest Products, Inc. since July 13, 2011. He served as the President of ECJW Holdings, Inc. Mr. Missad jo ...


CEO Compensation Analysis

Matt's remuneration is about average for companies of similar size in United States of America.

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


Management Age and Tenure

10.7yrs

Average Tenure

58yo

Average Age

The average tenure for the Universal Forest Products management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

57.5yo

Average Age

The tenure for the Universal Forest Products board of directors is about average.


Insider Trading

Universal Forest Products individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$30,33802 Aug 19
David Tutas
EntityIndividual
Role
Chief Legal Officer
VP of Legal
Shares750
Max PriceUS$40.45
SellUS$240,70430 Jul 19
Allen Peters
EntityIndividual
Role
Unit President
President of UFP Western Division
Shares5,831
Max PriceUS$41.28
SellUS$231,41230 Jul 19
Michael Mordell
EntityIndividual
Shares5,643
Max PriceUS$41.03
SellUS$802,50029 Jul 19
Robert Coleman
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Manufacturing
Shares20,000
Max PriceUS$41.00
SellUS$428,94010 Jun 19
Matthew Missad
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares12,000
Max PriceUS$35.75
SellUS$101,74214 May 19
Patrick Webster
EntityIndividual
Role
President
President & COO
Shares2,809
Max PriceUS$36.32
SellUS$375,59403 May 19
Robert Coleman
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Manufacturing
Shares10,000
Max PriceUS$37.56
SellUS$419,02402 May 19
Patrick Webster
EntityIndividual
Role
President
President & COO
Shares11,325
Max PriceUS$37.00
SellUS$185,00002 May 19
Donald James
EntityIndividual
Role
Head of Sales
Executive Vice President of National Sales
Shares5,000
Max PriceUS$37.00
SellUS$278,85029 Apr 19
Allen Peters
EntityIndividual
Role
Unit President
President of UFP Western Division
Shares7,800
Max PriceUS$35.75
SellUS$381,50029 Apr 19
Michael Cole
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares10,446
Max PriceUS$36.58
SellUS$353,40029 Apr 19
Robert Coleman
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Manufacturing
Shares10,000
Max PriceUS$35.34
SellUS$245,96318 Mar 19
Allen Peters
EntityIndividual
Role
Unit President
President of UFP Western Division
Shares8,131
Max PriceUS$30.25
BuyUS$67,00012 Dec 18
Michael Wooldridge
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$26.80
SellUS$8,87812 Dec 18
Chad Uhlig-Eastin
EntityIndividual
Shares332
Max PriceUS$26.74

Ownership Breakdown


Management Team

  • Mike Cole (52yo)

    CFO & Treasurer

    • Tenure: 19.2yrs
    • Compensation: US$1.71m
  • Robert Coleman (64yo)

    Executive Vice President of Manufacturing

    • Tenure: 20.7yrs
    • Compensation: US$715.88k
  • Matt Missad (58yo)

    CEO & Director

    • Tenure: 8.2yrs
    • Compensation: US$3.77m
  • DJ James (59yo)

    Executive Vice President of National Sales

    • Tenure: 8.7yrs
  • Scott Bravata

    Vice President of Accounting

    • Tenure: 13.6yrs
  • Pat Webster (59yo)

    President & COO

    • Tenure: 10.7yrs
    • Compensation: US$2.79m
  • Lynn Afendoulis

    Director of Corporate Communications

    • Tenure: 16.7yrs
  • Allen Peters (51yo)

    President of UFP Western Division

    • Tenure: 8.7yrs
    • Compensation: US$2.00m
  • Dave Tutas

    VP of Legal

    • Tenure: 8yrs
  • Patrick Benton (49yo)

    President of UFP Northern Division

    • Tenure: 0yrs
    • Compensation: US$1.37m

Board Members

  • Brian Walker (57yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$200.50k
  • Mary Tuuk (54yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$193.00k
  • William Currie (71yo)

    Chairman of the Board

    • Tenure: 10.2yrs
    • Compensation: US$370.00k
  • Matt Missad (58yo)

    CEO & Director

    • Tenure: 8.2yrs
    • Compensation: US$3.77m
  • Bruce Merino (65yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$196.00k
  • Michael Wooldridge (59yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$191.00k
  • Joan Budden (57yo)

    Independent Director

    • Tenure: 0.7yrs
  • Thomas Rhodes (57yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$193.00k

Company Information

Universal Forest Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Forest Products, Inc.
  • Ticker: UFPI
  • Exchange: NasdaqGS
  • Founded: 1955
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$2.488b
  • Shares outstanding: 61.37m
  • Website: https://www.ufpi.com

Number of Employees


Location

  • Universal Forest Products, Inc.
  • 2801 East Beltline Avenue, NE
  • Grand Rapids
  • Michigan
  • 49525
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UFPINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1993
UF3DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1993

Biography

Universal Forest Products, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia. The company offers preserved  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:42
End of Day Share Price2019/09/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.