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 average dividend payer.


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

3.1%

UFPI

2.0%

US Building

2.3%

US Market


1 Year Return

28.8%

UFPI

17.0%

US Building

5.6%

US Market

Return vs Industry: UFPI exceeded the US Building industry which returned 17% over the past year.

Return vs Market: UFPI exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

UFPIIndustryMarket
7 Day3.1%2.0%2.3%
30 Day-0.3%-0.2%-1.0%
90 Day10.8%4.4%-0.7%
1 Year30.5%28.8%18.8%17.0%7.9%5.6%
3 Year36.3%32.1%29.1%18.2%45.6%36.3%
5 Year173.0%157.9%59.8%40.3%65.8%47.6%

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 compared to its fair value and its price relative to the market?

15.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: UFPI ($40.4) is trading above our estimate of fair value ($37.49)

Significantly Undervalued: UFPI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UFPI is good value based on its PE Ratio (15.4x) compared to the Building industry average (20.3x).

PE vs Market: UFPI is good value based on its PE Ratio (15.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: UFPI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: UFPI is good value based on its PB Ratio (2.1x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UFPI's forecast earnings growth (8.2% per year) is above the savings rate (2.7%).

Earnings vs Market: UFPI's earnings (8.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: UFPI's earnings are forecast to grow, but not significantly.

Revenue vs Market: UFPI's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: UFPI's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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

Earnings Trend: UFPI's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: UFPI's earnings growth over the past year (13.9%) is below its 5-year average (21.6% per year).

Earnings vs Industry: UFPI earnings growth over the past year (13.9%) exceeded the Building industry 7.7%.


Return on Equity

High ROE: UFPI's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: UFPI has a higher Return on Assets than the Building industry average last year.


Return on Capital Employed

ROCE Improving: UFPI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Universal Forest Products's financial position?


Financial Position Analysis

Short Term Liabilities: UFPI's short term assets ($1.1B) exceeds its short term liabilities ($379.6M)

Long Term Liabilities: UFPI's short term assets (1.1B) exceeds its long term liabilities (287.8M)


Debt to Equity History and Analysis

Debt Level: UFPI's debt to equity ratio (18%) is considered satisfactory

Reducing Debt: UFPI's debt to equity ratio has increased from 15.9% to 18% over the past 5 years.

Debt Coverage: UFPI's debt is well covered by operating cash flow (105.2%).

Interest Coverage: UFPI's interest payments on its debt are well covered by EBIT (32.1x coverage).


Balance Sheet

Inventory Level: UFPI has a high level of physical assets or inventory.

Debt Coverage by Assets: UFPI's debt is covered by short term assets (assets are 5.160040x debt).


Next Steps

Dividend

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

0.99%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.8%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UFPI's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: UFPI's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.5%), UFPI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UFPI's dividends in 3 years are forecast to be thoroughly covered by earnings (13.2% payout ratio).


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?

10.8yrs

Average management tenure


CEO

Matt Missad (58yo)

8.3yrs

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

Compensation vs. Market: Matt's total compensation ($USD3.77M) is about average for companies of similar size in the US market ($USD5.13M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.8yrs

Average Tenure

58yo

Average Age

Experienced Management: UFPI's management team is seasoned and experienced (10.8 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: UFPI's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$425,00016 Sep 19
Robert Coleman
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Manufacturing
Shares10,000
Max PriceUS$42.50
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: 19.3yrs
    • Compensation: US$1.71m
  • Robert Coleman (64yo)

    Executive Vice President of Manufacturing

    • Tenure: 20.8yrs
    • Compensation: US$715.88k
  • Matt Missad (58yo)

    CEO & Director

    • Tenure: 8.3yrs
    • Compensation: US$3.77m
  • DJ James (59yo)

    Executive Vice President of National Sales

    • Tenure: 8.8yrs
  • Scott Bravata

    Vice President of Accounting

    • Tenure: 13.7yrs
  • Pat Webster (59yo)

    President & COO

    • Tenure: 10.8yrs
    • Compensation: US$2.79m
  • Lynn Afendoulis

    Director of Corporate Communications

    • Tenure: 16.8yrs
  • Allen Peters (51yo)

    President of UFP Western Division

    • Tenure: 8.8yrs
    • Compensation: US$2.00m
  • Dave Tutas

    VP of Legal

    • Tenure: 8.1yrs
  • Patrick Benton (49yo)

    President of UFP Northern Division

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

Board Members

  • Brian Walker (57yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$200.50k
  • Mary Tuuk (54yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$193.00k
  • William Currie (71yo)

    Independent Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: US$370.00k
  • Matt Missad (58yo)

    CEO & Director

    • Tenure: 8.3yrs
    • Compensation: US$3.77m
  • Bruce Merino (65yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$196.00k
  • Michael Wooldridge (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$191.00k
  • Joan Budden (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • Thomas Rhodes (57yo)

    Independent Director

    • Tenure: 7.5yrs
    • 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$2.479b
  • 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 Analysis2019/10/16 23:45
End of Day Share Price2019/10/16 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.