Universal Forest (UFPI) AI Stock Analysis

• Market Cap: $6.23B
• Dividend Yield: 1.28%
• Average Volume (3M): 343.44K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.98
• Revenue Growth: -5.09%
• EPS Growth: -26.13%
• Country: US
• Employees: 15,000
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.65
• Shares Outstanding: 60,394,886
• 10 Day Avg. Volume: 310,639
• 30 Day Avg. Volume: 343,435
• 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: 0.84
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 4.68
• Enterprise Value/Ebitda: 8.46
• 1Y Price Target: $111.67
• Price Target Upside: 10.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $113.00 ▲(11.43% Upside)

UFP Industries scores well due to its strong financial health and strategic initiatives aimed at long-term growth. However, current challenges in sales and profitability, along with neutral technical indicators, moderate the overall score. The company's valuation is fair, providing a balanced investment opportunity.

Positive Factors

Market Expansion

The Deckorators brand is expected to continue to gain share in the composite decking industry benefiting investments in marketing, increased capacity and product launches.

Sales Growth

Deckorators building momentum with a ~20% sales increase during the quarter as the Surestone technology continues to attract customers.

Strategic Investments

Deckorators improves its launch pad, with plans to double its market share in the next few years, supported by $200M in capacity additions and a new Northeast plant expected to be fully operational by early FY26.

Negative Factors

Competitive Pricing

Increased pricing competition weighed on margins for the Site Built business already facing soft demand.

Macroeconomic Challenges

UFPI has been negatively impacted by overall macro uncertainty and weak housing fundamentals with limited demand visibility across its three primary operating segments.

Pricing Pressures

UFPI’s construction and packaging operating segments continue to see pricing headwinds due to ongoing wood commodity deflation and supply/demand imbalances in key product categories.

Universal Forest Business Overview & Revenue Model

Company Description

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia. It operates through Retail, Industrial, and Construction segments. The Retail segment offers preserved and unpreserved dimensional lumber; and outdoor living products, including wood and wood composite decking and related accessories, decorative lawn, garden, craft, and hobby products. This segment serves national home center retailers, and retail-oriented regional and contractor-oriented lumberyards under the ProWood, ProWood FR, Deckorators, UFP-Edge, Outdoor Essentials, Dimensions, and Handprint trademarks. The Industrial segment provides pallets, specialty crates, wooden boxes, and other containers and products that are used for packaging, shipping, and material handling applications, as well as various other protective packaging applications. The construction segment offers roof trusses, cut and shaped lumbers, plywood, oriented strand boards, and dimensional lumbers; and engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages, as well as distributes siding, electrical, and plumbing products to factory-built housing and recreational vehicle customers. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and bridges, as well as provides farming services for builders. It also offers interior fixtures, millwork, and casework for retail, commercial, and other structures; and structural wood packaging, other packing materials, and original equipment manufacturer components for various industries. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was founded in 1955 and is headquartered in Grand Rapids, Michigan.

How the Company Makes Money

UFP Industries generates revenue primarily through the sale of its wood and wood-related products across its various business segments. The company has multiple revenue streams, including direct sales to manufacturers, wholesalers, and retailers, as well as contracts for large-scale construction projects. Key revenue drivers include the demand for treated lumber and engineered wood products, which are essential for construction and DIY projects. Additionally, UFP Industries benefits from strategic partnerships with suppliers and distributors, enabling it to maintain a competitive edge in pricing and product availability. The company's focus on sustainability also attracts environmentally conscious customers, further enhancing its market position and revenue potential.

Universal Forest Financial Statement Overview

Summary

UFP Industries maintains strong financial health with a robust balance sheet and efficient cash flow management. Despite stable profitability, the company faces revenue contraction and declining free cash flow. Continued focus on operational efficiency and revenue growth is essential to mitigate these challenges.

Income Statement

UFP Industries demonstrates stable profitability with a Gross Profit Margin of 17.1% TTM and a Net Profit Margin of 5.3% TTM. However, there has been a noticeable decline in revenue, with a Revenue Growth Rate of -1.7% TTM compared to the previous year. The EBIT margin of 6.4% TTM and EBITDA margin of 9.5% TTM highlight decent operational efficiency but indicate room for improvement.

Balance Sheet

The company's balance sheet is robust with a low Debt-to-Equity Ratio of 0.07 TTM, indicating minimal leverage. A strong Equity Ratio of 77.3% TTM showcases a solid capital structure. Return on Equity is healthy at 11.0% TTM, reflecting efficient use of shareholders' equity.

Cash Flow

UFP Industries exhibits solid cash flow management with an Operating Cash Flow to Net Income Ratio of 1.49 TTM, denoting strong cash conversion. The Free Cash Flow to Net Income Ratio is 0.75 TTM, suggesting effective capital expenditure management. However, the Free Cash Flow Growth Rate is negative, at -36.4% compared to the previous year, indicating challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54B	6.65B	7.22B	9.63B	8.64B	5.15B
Gross Profit	1.12B	1.23B	1.42B	1.79B	1.41B	800.30M
EBITDA	618.55M	701.03M	815.97M	1.06B	835.69M	418.51M
Net Income	347.33M	414.56M	514.31M	692.65M	535.64M	246.78M
Balance Sheet
Total Assets	4.10B	4.15B	4.02B	3.67B	3.25B	2.40B
Cash, Cash Equivalents and Short-Term Investments	875.01M	1.20B	1.15B	595.41M	323.16M	460.81M
Total Debt	375.35M	356.92M	384.30M	389.09M	437.07M	389.76M
Total Liabilities	923.67M	900.95M	967.58M	1.07B	1.23B	921.74M
Stockholders Equity	3.17B	3.22B	3.00B	2.56B	1.98B	1.46B
Cash Flow
Free Cash Flow	261.19M	410.30M	779.51M	657.44M	361.31M	247.29M
Operating Cash Flow	516.63M	642.57M	959.89M	831.57M	512.48M	336.48M
Investing Cash Flow	-301.29M	-270.75M	-240.16M	-353.94M	-611.19M	-154.72M
Financing Cash Flow	-412.99M	-307.12M	-162.86M	-210.21M	-45.01M	85.22M

Universal Forest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Negative. The current price of 101.41 is above the 20-day moving average (MA) of 101.36, above the 50-day MA of 101.01, and below the 200-day MA of 109.79, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 70.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFPI.

Universal Forest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMY	78 Outperform	$9.69B	16.33	25.19%	1.12%	20.35%	20.44%
BCC	74 Outperform	$3.23B	12.73	11.77%	6.63%	-5.26%	-40.75%
UFPI	72 Outperform	$6.23B	18.05	10.71%	1.28%	-5.09%	-26.13%
TX	70 Neutral	$6.33B	10.82	4.89%	8.37%	-16.83%	―
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
EMN	63 Neutral	$7.62B	9.33	14.52%	4.97%	1.60%	-3.97%
Sector *	61 Neutral	$10.09B	5.98	1.14%	3.01%	3.01%	-45.09%

Universal Forest Corporate Events

UFP Industries Reports Strong Q2 2025 Financial Performance

UFP Industries presented its second quarter 2025 Investor Relations Presentation, highlighting its financial performance and strategic goals. The company reported a $6.5 billion net sales for Q2 2025 and emphasized its focus on driving above-market growth, compounding margins, and maintaining a best-in-class return on invested capital. UFP Industries aims to enhance its market position through product and process innovation, capacity consolidation, and strategic acquisitions, while leveraging its scale advantage in the softwood lumber market.

The most recent analyst rating on (UFPI) stock is a Hold with a $125.00 price target. To see the full list of analyst forecasts on UFP Industries stock, see the UFPI Stock Forecast page.