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Patrick Industries (PATK)
NASDAQ:PATK
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Patrick Industries (PATK) AI Stock Analysis

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PATK

Patrick Industries

(NASDAQ:PATK)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
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 (PATK) vs. SPDR S&P 500 ETF (SPY)

Patrick Industries Business Overview & Revenue Model

Company DescriptionPatrick 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 MoneyPatrick 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 Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
Patrick Industries demonstrated resilience with moderate revenue growth and strategic investments despite facing challenges such as a decline in net income due to a legal settlement and decreased revenues in the powersports and marine segments. The company's strong liquidity position and continued investment in new business opportunities suggest a balanced outlook.
Q2-2025 Updates
Positive Updates
Revenue Growth and New Business Secured
Patrick Industries reported a 3% increase in revenue, reaching approximately $1.05 billion for the second quarter. The company secured over $100 million in new business for the 2026 model year.
Strong RV Segment Performance
RV revenue increased by 7% to $479 million, driven by market share gains and acquisitions. RV content per unit increased 6% year-over-year.
Adjusted Earnings Per Share Increase
Adjusted earnings per diluted share rose to $1.50, up 4% from the prior year.
Solid Liquidity Position
Patrick Industries reported a strong liquidity position with $835 million, including $813 million in unused capacity on the revolving credit facility.
Share Repurchases and Dividends
The company repurchased $23 million in shares during the quarter and paid $13 million in dividends.
Negative Updates
Net Income Decline
Net income decreased by 32% to $32 million or $0.96 per diluted share, impacted by a non-recurring legal settlement.
Powersports Revenue Decline
Powersports revenue decreased by 7% to $96 million, with wholesale shipments down year-over-year.
Marine Revenue Slight Decline
Marine revenues decreased by 1% to $156 million amid a 5% decrease in wholesale powerboat shipments.
Legal Settlement Impact
A legal settlement related to a motor vehicle accident impacted GAAP pretax income and cash flow projections.
Company Guidance
During the second quarter of 2025, Patrick Industries reported a 3% increase in top-line growth, achieving approximately $1.05 billion in revenue, with a trailing 12-month revenue of $3.8 billion. The company's adjusted earnings per diluted share were $1.50, inclusive of $0.03 of dilution from convertible notes and warrants. Their RV segment saw a 7% revenue increase to $479 million, while marine revenues slightly decreased by 1% to $156 million. Powersports revenue fell by 7% to $96 million, and housing revenues rose by 3% to $315 million. Dealer inventories remained lean, reflecting 19 to 21 weeks on hand in RV and 20 to 22 weeks in marine, both below pre-pandemic levels. Patrick Industries maintained a strong balance sheet with $835 million in liquidity, enabling $13 million in dividends and $23 million in share repurchases. The company continues to focus on innovation, with over $100 million in new business tied to the 2026 model year and ongoing efforts in automation and advanced data analytics.

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
70
Positive
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
65
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.87B3.72B3.47B4.88B4.08B2.49B
Gross Profit887.41M835.89M782.23M1.06B801.19M459.02M
EBITDA276.30M424.58M404.74M626.93M456.52M246.64M
Net Income120.53M138.40M142.90M328.20M224.91M97.06M
Balance Sheet
Total Assets3.15B3.02B2.56B2.78B2.65B1.75B
Cash, Cash Equivalents and Short-Term Investments20.70M33.56M11.41M22.85M122.85M44.77M
Total Debt211.88M1.52B1.21B1.45B1.45B937.48M
Total Liabilities1.98B1.89B1.52B1.83B1.88B1.19B
Stockholders Equity1.17B1.13B1.05B955.17M767.56M559.44M
Cash Flow
Free Cash Flow183.23M251.16M349.69M331.86M187.33M128.05M
Operating Cash Flow301.22M326.84M408.67M411.74M252.13M160.15M
Investing Cash Flow-164.34M-512.85M-86.55M-321.47M-574.73M-337.88M
Financing Cash Flow-168.79M208.16M-333.56M-190.27M400.69M83.11M

Patrick Industries Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price100.83
Price Trends
50DMA
105.56
Negative
100DMA
101.87
Negative
200DMA
94.18
Positive
Market Momentum
MACD
-0.63
Negative
RSI
47.31
Neutral
STOCH
58.62
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 Risk Analysis

Patrick Industries disclosed 35 risk factors in its most recent earnings report. Patrick Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Patrick Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$1.62B17.777.15%4.05%-47.49%
$1.36B6.5826.19%1.99%-6.05%
$3.36B26.7611.25%1.59%6.09%-18.29%
$7.15B17.215.20%-0.82%-23.99%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$1.07B-62.59-1.18%4.39%5.37%-127.27%
$4.19B-6.68%8.25%-11.36%-133.01%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PATK
Patrick Industries
100.83
18.24
22.08%
MLKN
MillerKnoll
15.59
-5.98
-27.72%
LEG
Leggett & Platt
9.53
-2.22
-18.89%
MHK
Mohawk
115.59
-18.68
-13.91%
WHR
Whirlpool
71.72
-25.43
-26.18%
MBC
MasterBrand Inc
12.66
-5.30
-29.51%

Patrick Industries Corporate Events

Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Patrick Industries Reports Q3 2025 Sales Growth
Positive
Oct 30, 2025

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.

Dividends
Patrick Industries Declares Quarterly Cash Dividend
Positive
Aug 18, 2025

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
Aug 6, 2025

Patrick Industries’ Earnings Call Reveals Resilience Amid Challenges

Patrick Industries Reports Q2 2025 Financial Results
Aug 1, 2025

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.

Business Operations and StrategyFinancial Disclosures
Patrick Industries Reports Q2 2025 Financial Results
Positive
Jul 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025