Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $3.32B
• Dividend Yield: 1.65%
• Average Volume (3M): 252.44K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.22
• 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): 1.50
• Shares Outstanding: 33,278,675
• 10 Day Avg. Volume: 233,007
• 30 Day Avg. Volume: 252,438
• 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: 1.38
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 14.00
• 1Y Price Target: $109.40
• Price Target Upside: 12.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: $106.00 ▲(9.08% Upside)

Patrick Industries' overall score reflects a stable financial performance and positive earnings call insights, tempered by bearish technical indicators and a relatively high valuation. The company's strategic investments and strong liquidity position are significant strengths, while the current market momentum and valuation present notable risks.

Positive Factors

Revenue Growth

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

Strong Liquidity Position

A robust liquidity position enhances financial flexibility, enabling strategic investments and cushioning against economic downturns.

New Business Opportunities

Securing new business contracts ensures future revenue streams, reflecting effective market positioning and innovation capabilities.

Negative Factors

Net Income Decline

A significant decline in net income can strain profitability and may require strategic adjustments to maintain financial health.

Powersports Revenue Decline

A decline in powersports revenue suggests potential market challenges, which could impact overall revenue diversification and growth.

Marine Revenue Decline

Decreasing marine revenues indicate sector-specific challenges, potentially affecting the company's ability to sustain diversified growth.

Patrick Industries Business Overview & Revenue Model

Company Description

Patrick Industries, Inc. is a leading manufacturer and supplier of building and component products for the recreational vehicle (RV), manufactured housing, and industrial markets. The company operates across various sectors, including residential and commercial construction, offering a diverse range of products such as countertops, cabinets, and other wood and plastic products. With a focus on innovation and customer service, Patrick Industries serves a broad customer base, including OEMs and distributors, thereby establishing a strong presence in the markets it serves.

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 shows moderate revenue growth and improved debt-to-equity ratio, indicating financial stability. However, a slight decline in net income and uneven free cash flow growth are concerns.

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	3.82B	3.72B	3.47B	4.88B	4.08B	2.49B
Gross Profit	878.96M	835.89M	782.23M	1.06B	801.19M	459.02M
EBITDA	326.61M	424.58M	404.74M	626.93M	456.52M	246.64M
Net Income	126.10M	138.40M	142.90M	328.20M	224.91M	97.06M
Balance Sheet
Total Assets	3.08B	3.02B	2.56B	2.78B	2.65B	1.75B
Cash, Cash Equivalents and Short-Term Investments	21.97M	33.56M	11.41M	22.85M	122.85M	44.77M
Total Debt	1.47B	1.52B	1.21B	1.45B	1.45B	937.48M
Total Liabilities	1.94B	1.89B	1.52B	1.83B	1.88B	1.19B
Stockholders Equity	1.14B	1.13B	1.05B	955.17M	767.56M	559.44M
Cash Flow
Free Cash Flow	234.10M	251.16M	349.69M	331.86M	187.33M	128.05M
Operating Cash Flow	343.65M	326.84M	408.67M	411.74M	252.13M	160.15M
Investing Cash Flow	-212.65M	-512.85M	-86.55M	-321.47M	-574.73M	-337.88M
Financing Cash Flow	-152.98M	208.16M	-333.56M	-190.27M	400.69M	83.11M

Patrick Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATK, the sentiment is Negative. The current price of 97.18 is below the 20-day moving average (MA) of 104.08, below the 50-day MA of 107.14, and above the 200-day MA of 92.86, indicating a neutral trend. The MACD of -2.50 indicates Positive momentum. The RSI at 27.48 is Positive, neither overbought nor oversold. The STOCH value of 6.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PATK.

Patrick Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBC	73 Outperform	$1.63B	18.47	7.15%	―	4.05%	-47.49%
MHK	63 Neutral	$7.60B	15.89	5.95%	―	-1.61%	―
PATK	62 Neutral	$3.32B	26.97	11.25%	1.65%	6.09%	-18.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEG	54 Neutral	$1.18B	8.51	18.68%	2.29%	-6.15%	―
MLKN	53 Neutral	$1.13B	45.68	-1.18%	4.51%	5.37%	-127.27%
WHR	49 Neutral	$4.31B	738.81	-5.35%	8.26%	-16.05%	-127.65%

Patrick Industries Corporate Events

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.

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.