Patrick Industries (PATK)
NASDAQ:PATK
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Patrick Industries
(NASDAQ:PATK)
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Rating:62Neutral
Price Target:
$114.00
▲(6.16% Upside)
Action:DowngradedDate:02/07/26
PATK scores as a moderate-quality setup: solid and improving cash generation and constructive 2026 outlook support the rating, but elevated leverage and still-thin profitability keep financial performance from scoring higher. Technically the trend is strong, yet overbought signals raise near-term risk, and a high P/E with a modest yield weighs on valuation.
Positive Factors
Free Cash Flow Strength
Patrick’s free cash flow is a durable financial advantage: FCF improved materially in 2025 and operating cash covered a large portion of earnings. Strong cash generation plus ~$818M liquidity supports reinvestment in automation, M&A, dividend returns and gradual deleveraging over the medium term.
Negative Factors
Elevated Leverage
Debt levels remain meaningfully above equity and net leverage (2.6x) is elevated, increasing sensitivity to cyclical downturns. Higher leverage raises interest and refinancing risk, reduces flexibility for large investments, and lengthens recovery time if end-market shipments weaken or working capital pressure persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Patrick’s free cash flow is a durable financial advantage: FCF improved materially in 2025 and operating cash covered a large portion of earnings. Strong cash generation plus ~$818M liquidity supports reinvestment in automation, M&A, dividend returns and gradual deleveraging over the medium term.
Read all positive factors
Patrick Industries (PATK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.57B
Dividend Yield1.49%
Average Volume (3M)275.84K
Price to Earnings (P/E)26.1
Beta (1Y)1.09
Revenue Growth6.08%
EPS Growth-22.18%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.84
Shares Outstanding33,234,715
10 Day Avg. Volume356,644
30 Day Avg. Volume275,843
Financial Highlights & Ratios
PEG Ratio-12.32
Price to Book (P/B)2.97
Price to Sales (P/S)0.89
P/FCF Ratio14.29
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda12.30
Forecast
1Y Price Target
$152.00Price Target Upside41.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)5.39
Revenue Forecast (FY)$4.13B
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 segmen...
How the Company Makes Money
Patrick Industries primarily makes money by selling manufactured and distributed components and building products to original equipment manufacturers (OEMs) and other customers in its end markets, with revenue recognized largely from product sales...
Patrick Industries Key Performance Indicators (KPIs)
Patrick Industries Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial progress: double-digit quarterly content and revenue gains in key end markets, improved quarterly margins, strong cash generation, active strategic acquisitions (marine, composites, aftermarket) and a meaningful aftermarket expansion. Challenges noted include industry-wide shipment softness in housing, commodity/ tariff headwinds, a near-term inventory build for composites, some full-year margin pressure and convertible-note dilution. Management provided constructive 2026 guidance (margin expansion and robust cash flow) but emphasized reliance on disciplined OEM/dealer behavior and consumer confidence for shipment recoveries. Overall, positives (top-line growth, margin expansion in Q4, strong free cash flow, strategic M&A and innovation investments) outweigh the headwinds cited.Positive Updates
Top-line Growth
Fourth-quarter net sales increased 9% year-over-year to $924 million; full-year net sales increased 6% to approximately $4.0 billion.
Negative Updates
Wholesale Shipment Weakness and Macro/Tariff Headwinds
Company noted wholesale shipment declines across RV, marine and housing markets driven by macro uncertainty and tariff volatility; management described dealer and OEMs as cautious and inventory-disciplined.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth
Fourth-quarter net sales increased 9% year-over-year to $924 million; full-year net sales increased 6% to approximately $4.0 billion.
Read all positive updates
Company Guidance
Patrick's 2026 guidance called for adjusted operating margin to expand 70–90 basis points versus 2025, operating cash flow of $380–$400 million, CapEx of $70–$80 million and implied free cash flow of roughly $300 million or more, with a full‑year tax rate of 24–25%. Management's end‑market shipment assumptions were: RV retail registrations flat with wholesale shipments up low‑to‑mid single digits; marine retail flat with wholesale powerboat shipments up low single digits; powersports unit shipments up low single digits (organic content up low single digits, implying mid‑to‑high single‑digit growth for that business); MH wholesale shipments flat to up 5% and residential housing starts flat to up 5%. They also flagged potential EPS dilution tied to convertible notes/warrants based on recent trading levels, and reiterated disciplined capital allocation while targeting net leverage of 2.25–2.5x (Q4 net leverage 2.6x) and ending the quarter with approximately $818 million of available liquidity.Patrick Industries Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.95B | 3.72B | 3.47B | 4.88B | 4.08B |
| Gross Profit | 912.86M | 835.89M | 782.23M | 1.06B | 801.19M |
| EBITDA | 421.78M | 424.58M | 404.74M | 626.93M | 456.52M |
| Net Income | 135.06M | 138.40M | 142.90M | 328.20M | 224.91M |
Balance Sheet | |||||
| Total Assets | 3.08B | 3.02B | 2.67B | 2.78B | 2.65B |
| Cash, Cash Equivalents and Short-Term Investments | 26.43M | 33.56M | 11.41M | 22.85M | 122.85M |
| Total Debt | 1.64B | 1.52B | 1.21B | 1.45B | 1.45B |
| Total Liabilities | 1.89B | 1.89B | 1.63B | 1.83B | 1.88B |
| Stockholders Equity | 1.18B | 1.13B | 1.05B | 955.17M | 767.56M |
Cash Flow | |||||
| Free Cash Flow | 246.49M | 251.16M | 349.69M | 331.55M | 187.33M |
| Operating Cash Flow | 329.41M | 326.84M | 408.67M | 411.74M | 252.13M |
| Investing Cash Flow | -206.49M | -512.85M | -86.55M | -321.47M | -574.73M |
| Financing Cash Flow | -130.06M | 208.16M | -333.56M | -190.27M | 400.69M |
Patrick Industries Technical Analysis
Negative
107.39
Price Trends
125.42
Negative
116.87
Negative
109.04
Negative
Market Momentum
-4.67
Positive
27.93
Positive
20.05
Neutral
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 107.39 is below the 20-day moving average (MA) of 114.47, below the 50-day MA of 125.42, and below the 200-day MA of 109.04, indicating a bearish trend. The MACD of -4.67 indicates Positive momentum. The RSI at 27.93 is Positive, neither overbought nor oversold. The STOCH value of 20.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $5.92B | 18.35 | 4.50% | ― | -0.82% | -23.99% | |
62 Neutral | $3.57B | 26.08 | 10.49% | 1.49% | 6.08% | -22.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.30B | 6.47 | 26.15% | 1.84% | -6.03% | ― | |
50 Neutral | $1.03B | 14.70 | 0.83% | 4.16% | 4.34% | -141.36% | |
47 Neutral | $2.93B | 9.33 | 12.72% | 7.40% | -11.36% | -133.01% | |
47 Neutral | $1.06B | 53.13 | 1.98% | ― | 1.77% | -44.11% |
* Consumer Cyclical Sector Average
PATK
Patrick Industries
107.39
24.17
29.04%
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Patrick Industries Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Patrick Industries Reports Strong Q4 and Full-Year 2025 Results
Positive
Feb 5, 2026
On February 5, 2026, Patrick Industries reported that fourth-quarter 2025 net sales rose 9% year over year to $924 million and full-year 2025 sales grew 6% to $4.0 billion, driven largely by content gains and acquisitions in its Outdoor Enthusiast...
Executive/Board Changes
Patrick Industries Announces Planned Chief Financial Officer Transition
Neutral
Jan 5, 2026
On January 5, 2026, Patrick Industries announced a planned chief financial officer transition, with current Executive Vice President of Finance, Chief Financial Officer and Treasurer Andrew C. Roeder resigning effective February 20, 2026, followin...
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.