Patrick Industries, Inc. (PATK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Cavco Industries, Inc.

Frontdoor, Inc.

Green Brick Partners, Inc.

Skyline Champion Corp.

Patrick Industries, Inc.

M/I Homes, Inc.

Century Communities, Inc.

KB Home

Tri Pointe Homes, Inc.

LGI Homes, Inc.

Why is Patrick Industries, Inc. ?

High Management Efficiency with a high ROCE of 14.41%

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 275.32 MM
OPERATING PROFIT MARGIN(Q) Lowest at 10.78 %

With ROCE of 11.82%, it has a very expensive valuation with a 1.97 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.55%, its profits have risen by 4.9%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -2.55% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Patrick Industries, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Patrick Industries, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Patrick Industries, Inc.

-2.55%

0.70

35.57%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.70%

EBIT Growth (5y)

11.03%

EBIT to Interest (avg)

5.03

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

1.51

Tax Ratio

23.81%

Dividend Payout Ratio

42.83%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.41%

ROE (avg)

21.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.05

EV to EBIT

16.66

EV to EBITDA

10.57

EV to Capital Employed

1.97

EV to Sales

1.25

PEG Ratio

Dividend Yield

ROCE (Latest)

11.82%

ROE (Latest)

12.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.91%

DIVIDEND PER SHARE(HY)

Highest at USD 13.73

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 275.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.78 %

Here's what is working for Patrick Industries, Inc.

Dividend per share

Highest at USD 13.73 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 42.91% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Patrick Industries, Inc.

Operating Cash Flow

Lowest at USD 275.32 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 10.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales