UFP Industries (UFPI) AI Stock Analysis

• Market Cap: $6.39B
• Dividend Yield: 1.31%
• Average Volume (3M): 491.39K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.98
• Revenue Growth: -6.06%
• EPS Growth: -24.97%
• Country: US
• Employees: 15,000
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.30
• Shares Outstanding: 60,394,886
• 10 Day Avg. Volume: 696,890
• 30 Day Avg. Volume: 491,391
• PEG Ratio: 0.24
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.25
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 1.64
• 1Y Price Target: $123.33
• Price Target Upside: 16.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $113.00 ▲(6.85%Upside)

UFP Industries scores well on financial performance and corporate strategy, showcasing strong profitability and strategic growth plans. However, technical indicators and valuation suggest caution due to recent sales declines and uncertain market conditions.

Positive Factors

Efficiency Improvements

Management has identified, and is already working toward, ~$60M in annual run rate improvements for EBITDA in FY26.

Market Expansion

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.

Sales Growth

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

Negative Factors

Demand Challenges

Management’s outlook for 1H25 expects all three segments down slightly as soft demand and the resulting competitive pricing environment awaits a turnaround.

Earnings Performance

UFP Industries reported softer-than-expected 1Q25 results as margin pressures resulted in EBITDA and EPS falling short of Street estimates despite in-line revenue.

Pricing Competition

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

UFP Industries 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 through the manufacturing and distribution of wood and wood-alternative products across its key market segments: retail, industrial, and construction. The retail segment includes sales of outdoor living products like decking and fencing, primarily through home improvement retailers. In the industrial segment, the company provides customized packaging solutions and components to manufacturers and logistics companies. The construction segment offers structural lumber and engineered wood products for residential and commercial building projects. UFP Industries benefits from strategic partnerships and long-term contracts with major retailers and industrial clients, which contribute significantly to its earnings. Additionally, the company focuses on operational efficiency and innovation to enhance its product offerings and maintain competitive pricing.

UFP Industries Financial Statement Overview

Summary

UFP Industries exhibits a strong financial position with robust profitability metrics and a solid balance sheet characterized by low leverage and high equity. Despite a decline in revenue and free cash flow, the company maintains operational efficiency and strong cash generation, ensuring continued financial stability and growth potential.

Income Statement

UFP Industries shows strong profitability with a high gross profit margin of 17.7% and a healthy net profit margin of 5.6% for TTM. However, revenue has declined over the past year from $9.63 billion to $6.61 billion, leading to a negative revenue growth rate of -31.3%. EBIT and EBITDA margins remain solid at 6.8% and 9.7%, respectively, indicating efficient operations.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.07, suggesting low leverage and financial prudence. The return on equity stands at 11.4%, reflecting effective use of shareholder equity to generate income. A strong equity ratio of 78.5% highlights financial stability and low reliance on debt.

Cash Flow

UFP Industries demonstrates strong cash flow management with a free cash flow to net income ratio of 0.81, indicating that a substantial portion of net income is converted into free cash flow. The operating cash flow to net income ratio is notably high at 1.48, showcasing excellent cash-generating capabilities. However, free cash flow has decreased by 26.8% from the previous period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.61B	6.65B	7.22B	9.63B	8.64B	5.15B
Gross Profit	1.17B	1.23B	1.42B	1.79B	1.41B	800.30M
EBITDA	642.19M	701.03M	815.97M	1.06B	835.69M	418.51M
Net Income	372.52M	414.56M	514.31M	692.65M	535.64M	246.78M
Balance Sheet
Total Assets	4.08B	4.15B	4.02B	3.67B	3.25B	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.20B	1.15B	595.41M	323.16M	460.81M
Total Debt	409.85M	356.92M	384.30M	278.10M	337.28M	311.71M
Total Liabilities	943.16M	900.95M	967.58M	1.07B	1.23B	921.74M
Stockholders Equity	3.09B	3.22B	3.00B	2.60B	2.02B	1.48B
Cash Flow
Free Cash Flow	300.17M	410.30M	779.51M	657.44M	361.31M	247.29M
Operating Cash Flow	550.56M	642.57M	959.89M	831.57M	512.48M	336.48M
Investing Cash Flow	-290.24M	-270.75M	-240.16M	-353.94M	-611.19M	-154.72M
Financing Cash Flow	-329.08M	-307.12M	-162.86M	-210.21M	-45.01M	85.22M

UFP Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Positive. The current price of 105.76 is above the 20-day moving average (MA) of 99.14, above the 50-day MA of 99.65, and below the 200-day MA of 114.03, indicating a neutral trend. The MACD of 1.40 indicates Negative momentum. The RSI at 64.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UFPI.

UFP Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPI	74 Outperform	$6.39B	17.45	11.33%	1.31%	-6.06%	-24.97%
HMY	74 Outperform	$8.93B	15.37	25.19%	1.68%	20.35%	20.44%
BCC	72 Outperform	$3.51B	11.64	14.26%	0.90%	-4.67%	-35.04%
EMN	69 Neutral	$9.19B	10.13	16.16%	4.17%	2.78%	1.50%
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
TX	61 Neutral	$6.30B	73.52	-2.75%	11.24%	-10.20%	-152.18%

UFP Industries Corporate Events

UFP Industries Highlights Q1 2025 Strategic Growth Plans

UFP Industries‘ first quarter 2025 Investor Relations Presentation highlights the company’s strategic focus on driving above-market growth and improving margins. The company aims to achieve sustainable competitive advantages through diversification, innovation, and efficient capital allocation. UFP Industries plans to enhance its operations with automation and robotics, and expand its market presence through new products and strategic acquisitions, positioning itself for long-term financial growth.