UFP Industries, Inc. (UFPI) 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

UFP Industries, Inc.

Trex Co., Inc.

Mohawk Industries, Inc.

Boise Cascade Co.

Louisiana-Pacific Corp.

JELD-WEN Holding, Inc.

Why is UFP Industries, Inc. ?

High Management Efficiency with a high ROE of 19.65%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.49 times

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 493.24 MM
NET PROFIT(HY) At USD 128.42 MM has Grown at -25.68%
ROCE(HY) Lowest at 7.74%

With ROE of 9.30%, it has a fair valuation with a 1.66 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.57%, its profits have fallen by -29.2%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 8.15% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.57% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to UFP Industries, Inc. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is UFP Industries, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

UFP Industries, Inc.

-5.57%

-0.57

32.14%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.16%

EBIT Growth (5y)

0.74%

EBIT to Interest (avg)

49.95

Debt to EBITDA (avg)

0.25

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

2.01

Tax Ratio

23.71%

Dividend Payout Ratio

28.03%

Pledged Shares

Institutional Holding

91.85%

ROCE (avg)

26.54%

ROE (avg)

19.65%

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

1.66

EV to EBIT

11.90

EV to EBITDA

8.28

EV to Capital Employed

1.86

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

15.64%

ROE (Latest)

9.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 24.38%

INTEREST COVERAGE RATIO(Q)

Highest at 7,384.41

DIVIDEND PER SHARE(HY)

Highest at USD 8.5

NET SALES(Q)

Highest at USD 1,882.94 MM

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 493.24 MM

NET PROFIT(HY)

At USD 128.42 MM has Grown at -25.68%

ROCE(HY)

Lowest at 7.74%

RAW MATERIAL COST(Y)

Grown by 10.16% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -7.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.11 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.5 times

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

Interest Coverage Ratio

Highest at 7,384.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend Payout Ratio

Highest at 24.38% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at USD 1,882.94 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend per share

Highest at USD 8.5

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 43.76 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Operating Cash Flow

Lowest at USD 493.24 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)

Net Profit

At USD 128.42 MM has Grown at -25.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at -7.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 7.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 8.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.16% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales