Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: 1.46%
• Average Volume (3M): 276.31K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.15
• Revenue Growth: 6.08%
• EPS Growth: -22.18%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.01
• Shares Outstanding: 33,276,096
• 10 Day Avg. Volume: 225,571
• 30 Day Avg. Volume: 276,309
• 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: 1.42
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: 16.17
• 1Y Price Target: $112.80
• Price Target Upside: -1.17% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 4.31
• Revenue Forecast (FY): $3.85B

• Rating: 70 Outperform
• Price Target: $118.00 ▲(3.39% Upside)

Patrick Industries shows a stable financial performance with improved leverage, but declining profitability margins and cash flow growth are concerns. Technical indicators are favorable, suggesting positive momentum. However, the high P/E ratio indicates potential overvaluation. The earnings call and recent corporate events highlight growth opportunities and strategic initiatives, supporting a moderately positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth across key segments indicates strong market demand and effective strategic positioning, supporting long-term expansion.

Balance Sheet Strength

A strong balance sheet with high liquidity provides financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Dividend Increase

Increasing dividends reflect confidence in cash flow stability and commitment to returning value to shareholders, enhancing long-term investor appeal.

Negative Factors

Declining Margins

Declining margins suggest rising costs or pricing pressures, which could impact profitability if not addressed, challenging long-term financial health.

Net Income Decrease

A decrease in net income indicates potential operational inefficiencies or market challenges, which could hinder future profitability and growth.

Free Cash Flow Decline

Declining free cash flow limits the company's ability to invest in growth opportunities and may affect its financial flexibility in the long run.

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 manufacturing and distribution of a wide array of building products and materials. Key revenue streams include sales from its manufacturing segments, which produce components for recreational vehicles and marine applications. Additionally, the company earns income from its distribution operations, where it supplies various products to manufacturers and builders in the construction sector. Strategic partnerships with major manufacturers and retailers in the RV and marine industries further enhance its market reach and contribute to revenue growth. Seasonal demand fluctuations and industry trends, such as the growth of outdoor recreational activities, also play a significant role in influencing its earnings.

Patrick Industries Financial Statement Overview

Summary

Patrick Industries demonstrates stable revenue growth and improved financial stability with reduced leverage. However, profitability margins have declined, and free cash flow growth is negative, indicating potential challenges in maintaining cash reserves. The company shows resilience in its operations, but there is room for improvement in profitability and cash flow management.

Income Statement

Patrick Industries shows a moderate revenue growth rate of 1.47% TTM, indicating stability in sales. The gross profit margin of 22.91% and net profit margin of 3.11% TTM reflect consistent profitability, although the net margin has decreased from the previous year. The EBIT margin of 4.32% and EBITDA margin of 7.13% TTM suggest operational efficiency, albeit with a decline compared to the previous year. Overall, the income statement reflects steady performance with room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.18 TTM from 1.35 the previous year, indicating a reduction in leverage and a stronger equity position. The return on equity of 10.52% TTM shows a decline, suggesting reduced profitability on shareholders' equity. The equity ratio of 37.14% TTM indicates a solid equity base relative to total assets. Overall, the balance sheet shows improved financial stability with reduced leverage, but profitability on equity could be enhanced.

Cash Flow

Operating cash flow to net income ratio of 0.74 TTM indicates healthy cash generation relative to net income, although it has decreased from the previous year. Free cash flow has declined by 21.73% TTM, reflecting challenges in maintaining cash reserves. The free cash flow to net income ratio of 0.61 TTM suggests adequate cash flow coverage, but with room for improvement. Overall, the cash flow statement shows solid cash generation, but declining free cash flow growth is a concern.

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	318.27M	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	2.67B	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	1.53B	1.52B	1.21B	1.45B	1.45B	937.48M
Total Liabilities	1.98B	1.89B	1.63B	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	331.55M	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: Positive
• Last Price: 114.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATK, the sentiment is Positive. The current price of 114.13 is above the 20-day moving average (MA) of 105.23, above the 50-day MA of 102.76, and above the 200-day MA of 95.52, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 72.97 is Negative, neither overbought nor oversold. The STOCH value of 84.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PATK.

Patrick Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATK	70 Outperform	$3.61B	31.02	10.49%	1.46%	6.08%	-22.18%
LEG	68 Neutral	$1.21B	5.55	26.20%	1.77%	-6.03%	―
MHK	67 Neutral	$6.72B	15.87	5.20%	―	-0.82%	-23.99%
MBC	63 Neutral	$1.40B	18.24	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.08B	―	-1.18%	4.55%	5.37%	-127.27%
WHR	51 Neutral	$4.21B	―	-6.68%	6.78%	-11.36%	-133.01%

Patrick Industries Corporate Events

Patrick Industries Increases Quarterly Dividend to $0.47

On November 19, 2025, Patrick Industries‘ Board of Directors approved an increase in the quarterly cash dividend on its common stock from $0.40 to $0.47 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025. This decision reflects the company’s confidence in its business model and market durability, as well as its commitment to a balanced capital allocation strategy that supports strategic growth initiatives.

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.