Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $3.78B
• Dividend Yield: 1.4%
• Average Volume (3M): 354.91K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 1.27
• Revenue Growth: 6.09%
• EPS Growth: -18.29%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.50
• Shares Outstanding: 33,278,675
• 10 Day Avg. Volume: 383,015
• 30 Day Avg. Volume: 354,912
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 14.00
• 1Y Price Target: $110.71
• Price Target Upside: -2.90% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: $123.00 ▲(7.88% Upside)

Patrick Industries maintains a stable financial profile with positive momentum and strategic growth initiatives. However, valuation concerns and sector-specific challenges temper the overall outlook.

Positive Factors

Financial Performance

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

Industry Rebound

PATK is well-positioned to benefit from the RV industry rebound due to its diverse product portfolio.

Strategic Initiatives

The company’s outlook and ongoing execution of strategic initiatives have led to a raised price target and a maintained Buy rating.

Negative Factors

Market 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.

Operating Margins

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

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 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 financial stability with revenue growth and improved debt-to-equity ratio. However, the slight decline in net income and uneven free cash flow growth are areas of concern.

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: Positive
• Last Price: 114.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 114.02 is above the 20-day moving average (MA) of 107.49, above the 50-day MA of 100.50, and above the 200-day MA of 89.94, indicating a bullish trend. The MACD of 4.29 indicates Negative momentum. The RSI at 66.52 is Neutral, neither overbought nor oversold. The STOCH value of 71.41 is Neutral, 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
TILE	80 Outperform	$1.57B	16.49	18.63%	0.15%	6.26%	44.74%
AMWD	74 Outperform	$981.21M	12.03	9.21%	―	-8.56%	-17.10%
MBC	74 Outperform	$1.75B	18.45	7.15%	―	4.05%	-47.49%
PATK	70 Outperform	$3.78B	31.11	11.25%	1.40%	6.09%	-18.29%
LZB	64 Neutral	$1.49B	16.77	9.09%	2.33%	2.18%	-22.35%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
MLKN	58 Neutral	$1.46B	45.68	-2.77%	3.49%	1.14%	-149.26%

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.

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.

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.