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Patrick Industries, Inc. (PATK)
:PATK
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Patrick Industries (PATK) AI Stock Analysis

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PATK

Patrick Industries

(NASDAQ:PATK)

Rating:65Neutral
Price Target:
$109.00
▲(8.62% Upside)
Patrick Industries is positioned well financially with solid revenue growth and improved debt levels. Its technical indicators suggest stable momentum, but high valuation metrics and macroeconomic uncertainties pose risks. Positive corporate events and earnings call insights further support its strategic direction.
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 (PATK) vs. SPDR S&P 500 ETF (SPY)

Patrick Industries Business Overview & Revenue Model

Company DescriptionPatrick 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 MoneyPatrick 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -0.74%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Patrick Industries demonstrated resilience with a solid financial position and new business growth despite some market challenges and a negative impact from a legal settlement. The company showed strong performance in RV revenue and adjusted EPS growth, but faced challenges in the powersports and marine segments, as well as concerns over tariffs and consumer confidence.
Q2-2025 Updates
Positive Updates
Top Line Growth
Patrick Industries produced a top line growth of 3%, with revenue reaching approximately $1.05 billion.
New Business Secured
The company secured over $100 million in new business tied to the 2026 model year in outdoor enthusiast end markets.
RV Revenue Increase
Second quarter RV revenue increased 7% to $479 million, driven by acquisitions and market share gains.
Strong Financial Position
Patrick Industries reported liquidity of $835 million, enabling continued execution on capital allocation strategy.
Adjusted EPS Growth
Adjusted EPS increased 4% to $1.50 compared to $1.44 in the prior year period.
Negative Updates
Legal Settlement Impact
A nonproduct-related legal settlement related to a motor vehicle accident impacted GAAP pretax income and GAAP net income.
Powersports Revenue Decline
Powersports revenues were $96 million in the quarter, down from $104 million in the prior year period.
Marine Revenue Slight Decrease
Second quarter marine revenues were $156 million, down 1% from the prior year.
Consumer Confidence and Tariff Challenges
April's tariff announcements resulted in a pause in consumer activity, and consumer confidence remains a concern.
Company Guidance
During the Patrick Industries Second Quarter 2025 Earnings Conference Call, several key metrics and guidance were provided. The company achieved a 3% top-line growth, resulting in a revenue of approximately $1.05 billion for the quarter and about $3.8 billion on a trailing 12-month basis. Adjusted earnings per diluted share were reported at $1.50, factoring in a $0.03 dilution from convertible notes and related warrants. Over $100 million in new business has been secured for the 2026 model year in outdoor enthusiast markets. The company maintained a solid balance sheet with liquidity of $835 million. In addition, Patrick Industries returned value to shareholders through $13 million in quarterly dividends and over $23 million in share repurchases. The RV segment saw a 7% revenue increase to $479 million, representing 46% of consolidated revenue, while marine revenues slightly declined by 1% to $156 million. Housing revenues rose by 3% to $315 million, and powersports revenues were $96 million. For the full year, the company anticipates RV retail unit shipments to decline mid-single digits, with estimated RV industry wholesale unit shipments between 320,000 to 335,000 units. Marine retail shipments are expected to decline high single to low double digits, and powersports wholesale shipments are projected to decrease by low double digits. The company maintains a full-year 2025 adjusted operating margin expectation of 7% to 7.3% and anticipates generating operating cash flow between $330 million to $350 million.

Patrick Industries Financial Statement Overview

Summary
Patrick Industries shows stable financial health with moderate revenue growth and improved debt-to-equity ratio. However, the slight decline in net income and uneven free cash flow growth are concerns.
Income Statement
70
Positive
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
65
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.82B3.72B3.47B4.88B4.08B2.49B
Gross Profit878.96M835.89M782.23M1.06B801.19M459.02M
EBITDA326.61M424.58M404.74M626.93M456.52M246.64M
Net Income126.10M138.40M142.90M328.20M224.91M97.06M
Balance Sheet
Total Assets3.08B3.02B2.56B2.78B2.65B1.75B
Cash, Cash Equivalents and Short-Term Investments21.97M33.56M11.41M22.85M122.85M44.77M
Total Debt1.47B1.52B1.21B1.45B1.45B937.48M
Total Liabilities1.94B1.89B1.52B1.83B1.88B1.19B
Stockholders Equity1.14B1.13B1.05B955.17M767.56M559.44M
Cash Flow
Free Cash Flow234.10M251.16M349.69M331.86M187.33M128.05M
Operating Cash Flow343.65M326.84M408.67M411.74M252.13M160.15M
Investing Cash Flow-212.65M-512.85M-86.55M-321.47M-574.73M-337.88M
Financing Cash Flow-152.98M208.16M-333.56M-190.27M400.69M83.11M

Patrick Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price100.35
Price Trends
50DMA
93.97
Positive
100DMA
88.30
Positive
200DMA
88.46
Positive
Market Momentum
MACD
1.80
Positive
RSI
63.28
Neutral
STOCH
62.19
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 100.35 is above the 20-day moving average (MA) of 99.01, above the 50-day MA of 93.97, and above the 200-day MA of 88.46, indicating a bullish trend. The MACD of 1.80 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.49B15.7318.63%0.16%6.26%44.74%
78
Outperform
$1.44B14.577.15%4.05%-47.49%
73
Outperform
$787.82M9.5610.89%-7.47%-9.07%
70
Outperform
$1.49B15.419.84%2.43%3.04%-16.49%
65
Neutral
$3.43B27.7911.25%1.52%6.09%-18.29%
57
Neutral
HK$24.67B3.83-3.22%5.89%0.28%-59.63%
56
Neutral
$1.34B45.68-2.77%4.12%1.14%-149.26%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PATK
Patrick Industries
100.35
21.99
28.06%
AMWD
American Woodmark
54.32
-34.88
-39.10%
MLKN
MillerKnoll
19.57
-7.67
-28.16%
TILE
Interface
25.46
9.02
54.87%
LZB
La-Z-Boy Incorporated
36.23
-4.68
-11.44%
MBC
MasterBrand Inc
11.33
-4.12
-26.67%

Patrick Industries Corporate Events

Business Operations and StrategyFinancial Disclosures
Patrick Industries Reports Q2 2025 Financial Results
Positive
Jul 31, 2025

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.

The most recent analyst rating on (PATK) stock is a Buy with a $85.32 price target. To see the full list of analyst forecasts on Patrick Industries stock, see the PATK Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Patrick Industries Appoints New Marine Division President
Positive
May 23, 2025

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.

Shareholder MeetingsDividends
Patrick Industries Declares Quarterly Cash Dividend
Positive
May 21, 2025

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.

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.Date of analysis: Aug 02, 2025