Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $4.11B
• Dividend Yield: 1.49%
• Average Volume (3M): 275.84K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 1.08
• 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): 0.84
• Shares Outstanding: 33,234,715
• 10 Day Avg. Volume: 356,644
• 30 Day Avg. Volume: 275,843
• PEG Ratio: -12.32
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 14.29
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 13.60
• 1Y Price Target: $152.00
• Price Target Upside: 22.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.4
• Revenue Forecast (FY): $4.13B

• Rating: 62 Neutral
• Price Target: $131.00 ▲(5.82% Upside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 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

Material reduction in leverage

A dramatic reduction in leverage meaningfully strengthens financial resilience, lowers interest burden, and increases capacity for strategic investments, acquisitions, and dividends. This improved capital structure supports durability through industry cycles and funds long-term growth initiatives.

Diversified end-market growth (Marine & Powersports)

Above-market growth in Marine and Powersports signals structural demand and product content expansion per unit, reducing dependence on a single cyclical market. Durable exposure to growing outdoor recreation segments supports steadier revenue and opportunity for higher aftermarket content per vehicle.

Disciplined capital allocation and strategic M&A

Consistent shareholder returns alongside targeted acquisitions show balanced capital allocation: rewarding investors while expanding capabilities and product breadth. This strategy strengthens market position, accelerates cross-selling, and embeds acquisition-driven inorganic growth into the company’s long-term model.

Negative Factors

Margin compression

Declining gross and operating margins indicate rising cost pressure or reduced pricing power. Persistent margin erosion restrains reinvestment capacity and free cash flow, weakening long-term profitability unless offset by productivity gains, pricing recovery, or higher-margin product mix shifts.

Declining free cash flow growth

Significant FCF decline reduces internal funding for acquisitions, dividends, and debt reduction. Even with positive operating cash conversion, falling FCF curtails financial flexibility and raises reliance on balance sheet strength to sustain strategic initiatives and shareholder returns over multiple quarters.

Falling net income and return on equity

Lower net income and reduced ROE signal weakening core profitability and returns to shareholders. Persistently lower profitability can limit reinvestment, make accretive M&A harder, and pressure long-term shareholder value creation unless margins and operating efficiency are restored.

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

Fundamentals are mixed: revenue has recovered and free cash flow is consistently positive (and improved in 2025), but profitability remains below prior-cycle peaks with thin operating/net margins, and leverage is elevated (debt higher than equity), increasing cyclical risk.

Income Statement

Revenue has recovered over the last two annual periods (2024–2025) after the 2023 decline, but profitability has not fully rebounded from the 2022 peak. Gross margin has improved in 2025 versus 2024, yet operating and net margins remain relatively thin and below the stronger 2021–2022 levels. Net income is roughly flat to slightly down across 2023–2025 despite higher sales, pointing to ongoing cost or pricing pressure.

Balance Sheet

Leverage is elevated, with debt running higher than equity across the period (debt-to-equity ~1.15–1.89), which increases sensitivity to cycles in end markets. On the positive side, equity has grown over time and returns on equity are acceptable in recent years (low-teens in 2024–2025), though well below the unusually strong 2021–2022 levels. Overall, the balance sheet is serviceable but not conservative given the debt load.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently positive and has improved meaningfully in 2025, with free cash flow covering a large portion of net income in recent years. However, cash conversion has been uneven—operating cash flow relative to net income was strong in 2022–2023 but fell below 1x in 2024–2025, suggesting more working-capital drag or timing effects. Even with that volatility, absolute free cash flow remains solid versus earnings.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 123.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 123.79 is below the 20-day moving average (MA) of 134.81, below the 50-day MA of 124.81, and above the 200-day MA of 106.25, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 10.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATK.

Patrick Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHK	67 Neutral	$7.70B	21.16	4.65%	―	-0.82%	-23.99%
PATK	62 Neutral	$4.11B	31.75	10.49%	1.49%	6.08%	-22.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	59 Neutral	$1.37B	-52.34	-1.95%	4.16%	4.34%	-141.36%
LEG	57 Neutral	$1.59B	6.87	27.48%	1.84%	-6.03%	―
MBC	53 Neutral	$1.29B	50.80	6.19%	―	1.77%	-44.11%
WHR	48 Neutral	$3.87B	12.09	11.76%	7.40%	-11.36%	-133.01%

Patrick Industries Corporate Events

Patrick Industries Reports Strong Q4 and Full-Year 2025 Results

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 markets, even as Housing revenue softened. Fourth-quarter operating income jumped 45% to $57 million and net income doubled to $29 million, with adjusted EBITDA up 17%, while for the full year operating income increased 7% to $276 million and adjusted net income rose 5% to $154 million despite modest margin compression and slightly lower reported net income due in part to the dilutive impact of convertible notes. The company outperformed underlying industry shipment trends across RV, marine and powersports through higher content per unit, completed five acquisitions in 2025 including QES and Egis in the fourth quarter, and deployed $122 million on M&A, while generating $246 million in free cash flow and returning $87 million to shareholders via dividends and buybacks, including a 17.5% dividend increase. Patrick ended 2025 with about $1.3 billion in total debt, a reduced net leverage ratio of 2.6x and $818 million in liquidity, reinforcing financial flexibility to continue investing in automation, digital capabilities and strategic acquisitions that support its long-term growth and competitive positioning.

The most recent analyst rating on (PATK) stock is a Buy with a $139.00 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.

Patrick Industries Announces Planned Chief Financial Officer Transition

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, following the filing of the company’s Form 10-K for the fiscal year ended December 31, 2025, to pursue opportunities outside the company; the company noted that Roeder’s departure does not stem from any disagreement over operations, policies or practices. In line with its executive succession plan, Patrick appointed Matthew S. Filer, currently Senior Vice President of Finance and Chief Accounting Officer and previously interim CFO, to succeed Roeder as Executive Vice President of Finance, Chief Financial Officer and Treasurer effective February 20, 2026, a move framed by management as ensuring continuity in financial leadership and stability for the finance organization amid dynamic end-market conditions.

The most recent analyst rating on (PATK) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.

Patrick Industries Announces Leadership Change

On December 12, 2025, Patrick Industries announced the resignation of Kip B. Ellis, President of Powersports and Housing, effective immediately. Hugo E. Gonzalez, currently Executive Vice President – Operations and Chief Operating Officer, has been appointed as his successor, aligning with the company’s succession plan.

The most recent analyst rating on (PATK) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.