Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $3.36B
• Dividend Yield: 1.59%
• Average Volume (3M): 244.94K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.28
• Revenue Growth: 6.09%
• EPS Growth: -18.29%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.01
• Shares Outstanding: 33,278,675
• 10 Day Avg. Volume: 232,390
• 30 Day Avg. Volume: 244,944
• PEG Ratio: -0.54
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 10.77
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 16.55
• 1Y Price Target: $109.40
• Price Target Upside: 8.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $109.00 ▲(8.10% Upside)

Patrick Industries shows financial stability with growing revenue and controlled debt, but faces challenges with declining net income and uneven cash flow growth. The technical indicators suggest a bearish trend, while the valuation indicates moderate overvaluation. The earnings call provided a balanced outlook with strong liquidity and strategic investments, contributing positively to the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Strong Liquidity Position

A solid liquidity position provides financial flexibility for strategic investments and resilience against market fluctuations.

New Business Secured

Securing new business ensures future revenue streams and strengthens market position, enhancing long-term growth prospects.

Negative Factors

Net Income Decline

A significant decline in net income can affect profitability and investor confidence, requiring strategic adjustments to improve margins.

Powersports Revenue Decline

Declining powersports revenue reflects challenges in market demand, potentially impacting overall revenue diversification and growth.

Marine Revenue Decline

A decline in marine revenue suggests sector-specific challenges, which may require strategic focus to regain market share.

Patrick Industries Business Overview & Revenue Model

Company Description

Patrick Industries, Inc. manufactures and distributes components, building products, and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, China, and Canada. Its Manufacturing segment manufactures and sells furniture, shelving, wall, countertop, and cabinet product; cabinet door, fiberglass bath fixture, and tile system; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum product; fiberglass and plastic components; RV painting; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinet; polymer-based flooring product; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile moulding; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat covers, tower, top, and frame; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite part, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panel, drywall and finishing product, electronic, audio system component, appliance, marine accessories, wiring product, electrical and plumbing product, fiber reinforced polyester product; cement siding product, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring product, shower door, furniture, fireplace and surround, interior and exterior lighting product, and other products. This segment also offers transportation and logistics service. The company was founded in 1959 and is headquartered in Elkhart, Indiana.

How the Company Makes Money

Patrick Industries generates revenue primarily through the sale of its manufactured products to the RV and manufactured housing industries. Key revenue streams include the sale of structural products, such as cabinetry and countertops, as well as decorative and functional components. The company also earns income from supplying materials used in industrial applications. Significant partnerships with OEMs and distributors in the RV and housing sectors enhance its market presence and contribute to consistent revenue generation. Additionally, the company's strategic acquisitions of complementary businesses have expanded its product offerings and customer reach, further bolstering its earnings.

Patrick Industries Financial Statement Overview

Summary

Patrick Industries presents a financially stable profile with growing revenue and controlled debt levels. While profitability margins are solid, the slight decline in net income and uneven free cash flow growth warrant attention. The company's strategic focus on enhancing equity and maintaining cash flow resilience is commendable, positioning it well in the competitive furnishings industry.

Income Statement

The company demonstrates moderate revenue growth with a TTM revenue of $3.82 billion, up from $3.72 billion annually. Gross profit margin is steady at approximately 23%, and net profit margin is around 3.3%. EBIT and EBITDA margins are satisfactory at 7% and 8.6%, respectively. However, net income has decreased slightly compared to the previous year, indicating a need for tighter cost management.

Balance Sheet

The debt-to-equity ratio has improved significantly, now at 0.18, compared to 1.35 in the previous year, indicating reduced leverage and an enhanced equity position. Return on Equity (ROE) is moderate at approximately 11%, and the equity ratio is fairly stable at 37%. The balance sheet reflects a solid equity base, though the relatively high total liabilities remain a concern.

Cash Flow

Free cash flow is positive, showing an annual growth rate of about -7% from the prior year. The operating cash flow to net income ratio is strong at 2.73, suggesting robust cash generation relative to net earnings. The free cash flow to net income ratio is healthy at 1.86, indicating effective cash flow management despite some volatility in investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.87B	3.72B	3.47B	4.88B	4.08B	2.49B
Gross Profit	887.41M	835.89M	782.23M	1.06B	801.19M	459.02M
EBITDA	276.30M	424.58M	404.74M	626.93M	456.52M	246.64M
Net Income	120.53M	138.40M	142.90M	328.20M	224.91M	97.06M
Balance Sheet
Total Assets	3.15B	3.02B	2.56B	2.78B	2.65B	1.75B
Cash, Cash Equivalents and Short-Term Investments	20.70M	33.56M	11.41M	22.85M	122.85M	44.77M
Total Debt	211.88M	1.52B	1.21B	1.45B	1.45B	937.48M
Total Liabilities	1.98B	1.89B	1.52B	1.83B	1.88B	1.19B
Stockholders Equity	1.17B	1.13B	1.05B	955.17M	767.56M	559.44M
Cash Flow
Free Cash Flow	183.23M	251.16M	349.69M	331.86M	187.33M	128.05M
Operating Cash Flow	301.22M	326.84M	408.67M	411.74M	252.13M	160.15M
Investing Cash Flow	-164.34M	-512.85M	-86.55M	-321.47M	-574.73M	-337.88M
Financing Cash Flow	-168.79M	208.16M	-333.56M	-190.27M	400.69M	83.11M

Patrick Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 100.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATK, the sentiment is Neutral. The current price of 100.83 is above the 20-day moving average (MA) of 100.03, below the 50-day MA of 105.56, and above the 200-day MA of 94.18, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATK.

Patrick Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBC	―	$1.62B	17.77	7.15%	―	4.05%	-47.49%
LEG	―	$1.36B	6.58	26.19%	1.99%	-6.05%	―
PATK	―	$3.36B	26.76	11.25%	1.59%	6.09%	-18.29%
MHK	―	$7.15B	17.21	5.20%	―	-0.82%	-23.99%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	―	$1.07B	-62.59	-1.18%	4.39%	5.37%	-127.27%
WHR	―	$4.19B	―	-6.68%	8.25%	-11.36%	-133.01%

Patrick Industries Corporate Events

Patrick Industries Reports Q3 2025 Sales Growth

Patrick Industries reported a 6% increase in net sales to $976 million for the third quarter of 2025, driven by organic growth and acquisitions, despite a decline in industry shipments. The company saw revenue growth across all its primary markets, although operating income and net income decreased compared to the previous year. Strategic investments in innovation and acquisitions, such as the purchase of LilliPad Marine, are enhancing Patrick’s product offerings and market presence. The company returned $13 million to shareholders through dividends and maintained a total net liquidity of $779 million, positioning itself strongly for future growth.

The most recent analyst rating on (PATK) stock is a Hold with a $109.00 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.

Patrick Industries Declares Quarterly Cash Dividend

On August 14, 2025, Patrick Industries, Inc. declared a quarterly cash dividend of $0.40 per share of common stock, payable on September 8, 2025, to shareholders of record as of August 25, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and reinforcing its market position.

The most recent analyst rating on (PATK) stock is a Buy with a $106.66 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.

Patrick Industries’ Resilient Earnings Call Amid Challenges

Patrick Industries’ Earnings Call Reveals Resilience Amid Challenges

Patrick Industries Reports Q2 2025 Financial Results

Patrick Industries, Inc., a leading component solutions provider for the RV, Marine, Powersports, and Housing markets, has reported its financial results for the second quarter of 2025. The company, headquartered in Elkhart, Indiana, is known for its comprehensive solutions model that integrates design, manufacturing, distribution, and transportation.

Patrick Industries Reports Q2 2025 Financial Results

In the second quarter of 2025, Patrick Industries reported a 3% increase in net sales to $1.05 billion, driven by growth in its RV and Housing businesses, despite declines in Marine and Powersports sectors. The company achieved a 2% rise in operating income to $87 million, with a flat operating margin of 8.3%. Adjusted net income was $51 million, excluding one-time legal settlement expenses, and adjusted diluted EPS rose to $1.50. Patrick Industries maintained strong cash flows, with $189 million provided by operating activities year-to-date, and returned $36.5 million to shareholders. The company is strategically positioned to capitalize on market opportunities and plans to focus on strategic acquisitions in the latter half of 2025.

The most recent analyst rating on (PATK) stock is a Buy with a $85.32 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.