Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $3.03B
• Dividend Yield: 1.72%
• Average Volume (3M): 295.06K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.29
• Revenue Growth: 8.12%
• EPS Growth: -5.17%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.11
• Shares Outstanding: 33,427,280
• 10 Day Avg. Volume: 297,026
• 30 Day Avg. Volume: 295,061
• PEG Ratio: 0.05
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.70
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: $98.00
• Price Target Upside: 8.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $95.00 ▲(5.65%Upside)

Patrick Industries' overall score of 71 reflects strong financial health and strategic initiatives, tempered by macroeconomic challenges and valuation concerns. The company's effective management and operational strategies provide a solid foundation, while technical indicators and corporate events further support a positive outlook.

Positive Factors

Diversification

PATK demonstrated a diversified model with growth in RV and MH sales, showcasing its ability to perform well in different segments.

Earnings

PATK posted results that beat consensus, showing strong sales growth and better-than-expected earnings.

Strategic Acquisitions

The balance sheet remains healthy with significant liquidity, supporting ongoing reinvestment and strategic acquisitions like Elkhart Composites and Medallion Instrumentation Systems.

Negative Factors

Cost Challenges

Despite cost pressures from tariffs, the company is well-positioned, using supply chain optimization and cost controls to offset these challenges.

Operating Margin

Operating margin came in a little lighter than anticipated, with a slightly lower margin base flowing through to 2025 estimates.

Outlook

The company has taken a more cautious tone for the second half of the year, adjusting down its end-market outlooks due to trends lagging expectations.

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 through the design, manufacturing, and distribution of a diverse range of building products and materials that cater to its core markets: recreational vehicles, marine, manufactured housing, and industrial sectors. The company operates through a network of manufacturing and distribution facilities, allowing it to efficiently serve its customers across North America. Key revenue streams include the sale of manufactured products such as decorative vinyl, countertops, and cabinet doors, as well as the distribution of building materials. Strategic acquisitions enhance its product offerings and market reach, while strong relationships with OEMs (Original Equipment Manufacturers) and aftermarket customers help maintain a steady demand for its products. Additionally, Patrick Industries benefits from trends in consumer preferences for RV and marine lifestyles, as well as the ongoing demand for manufactured housing and remodeling activities.

Patrick Industries Financial Statement Overview

Summary

Patrick Industries demonstrates solid financial health with efficient operations and stable profitability. Improvements in debt levels and strong cash flow generation are slightly offset by slowing revenue growth and reduced free cash flow due to increased capital expenditures.

Income Statement

Patrick Industries shows strong gross and EBIT margins, indicating efficient cost management and operational effectiveness. However, revenue growth has slowed significantly since 2022, which may indicate market saturation or increased competition. Despite this, net profit margins remain stable, reflecting consistent profitability.

Balance Sheet

The company's debt-to-equity ratio has improved over the trailing twelve months, suggesting a more balanced financial structure. However, the equity ratio is relatively moderate, indicating that liabilities form a significant portion of total assets. Return on equity remains healthy, showcasing effective use of shareholder funds.

Cash Flow

Operating cash flow remains strong, consistently covering net income, which reflects robust cash-generating capabilities. However, free cash flow has declined over the past year, mainly due to increased capital expenditures. The free cash flow to net income ratio indicates a stable cash position despite these investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.79B	3.72B	3.47B	4.88B	4.08B	2.49B
	Gross Profit
859.63M	835.89M	782.23M	1.06B	801.19M	459.02M
	EBIT
264.27M	258.04M	260.20M	496.17M	351.71M	173.37M
	EBITDA
433.12M	424.58M	404.74M	626.93M	456.52M	246.64M
	Net Income Common Stockholders
141.55M	138.40M	142.90M	328.20M	224.91M	97.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.56M	33.56M	11.41M	22.85M	122.85M	44.77M
	Total Assets
3.19B	3.02B	2.56B	2.78B	2.65B	1.75B
	Total Debt
1.63B	1.52B	1.21B	1.45B	1.45B	937.48M
	Net Debt
1.55B	1.49B	1.20B	1.43B	1.32B	892.72M
	Total Liabilities
2.05B	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
223.55M	251.16M	349.69M	331.86M	187.33M	128.05M
	Operating Cash Flow
331.74M	326.84M	408.67M	411.74M	252.13M	160.15M
	Investing Cash Flow
-208.21M	-512.85M	-86.55M	-321.47M	-574.73M	-337.88M
	Financing Cash Flow
-54.58M	208.16M	-333.56M	-190.27M	400.69M	83.11M

Patrick Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 89.92 is above the 20-day moving average (MA) of 88.09, above the 50-day MA of 83.58, and above the 200-day MA of 87.39, indicating a bullish trend. The MACD of 1.92 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 83.67 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
LZB	72 Outperform	$1.66B	13.80	12.40%	2.27%	1.81%	8.09%
PATK	71 Outperform	$3.03B	21.70	12.87%	1.72%	8.12%	-5.17%
TILE	70 Outperform	$1.24B	14.60	18.15%	0.19%	5.41%	44.50%
AMWD	68 Neutral	$819.17M	8.51	10.89%	―	-7.47%	―
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
MLKN	58 Neutral	$1.19B	41.49	2.28%	4.26%	-2.68%	-56.16%
MBC	58 Neutral	$1.33B	13.53	8.02%	―	1.30%	-44.70%

Patrick Industries Corporate Events

Patrick Industries Appoints New Marine Division President

On May 19, 2025, Patrick Industries announced that Jake Petkovich will rejoin the company as President of the Marine division, succeeding Rick Reyenger, who will transition to a strategic advisory role. Petkovich’s return is expected to drive growth and innovation in Patrick’s Marine businesses, leveraging his previous experience as CFO and his strategic and operational expertise. The appointment is part of Patrick’s ongoing efforts to enhance operational efficiency and deliver value to shareholders through strategic diversification.

The most recent analyst rating on (PATK) stock is a Buy with a $99.00 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 May 15, 2025, Patrick Industries held its Annual Meeting of Shareholders, where all director nominees were elected and various proposals, including an increase in authorized shares, were approved. The Board also declared a quarterly cash dividend of $0.40 per share, payable on June 9, 2025, reflecting the company’s strong financial position and commitment to returning value to shareholders.

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 Reports Q1 2025 Sales Growth

In the first quarter of 2025, Patrick Industries reported a 7% increase in net sales to $1.0 billion, driven by strong demand in the RV and Housing markets, despite declines in Marine and Powersports revenues. The company completed acquisitions of Elkhart Composites and Medallion Instrumentation Systems, enhancing its product offerings and market position. The company’s strategic initiatives and capital allocation strategies have positioned it to navigate macroeconomic uncertainties while maintaining financial strength and flexibility.