UFP Industries (UFPI) AI Stock Analysis

• Market Cap: $5.43B
• Dividend Yield: 1.51%
• Average Volume (3M): 478.48K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.81
• Revenue Growth: -3.90%
• EPS Growth: -25.97%
• Country: US
• Employees: 15,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.29
• Shares Outstanding: 58,257,225
• 10 Day Avg. Volume: 559,314
• 30 Day Avg. Volume: 478,481
• PEG Ratio: -0.91
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 15.98
• Enterprise Value/Market Cap: -0.14
• Enterprise Value/Revenue: -0.12
• Enterprise Value/Gross Profit: -0.72
• Enterprise Value/Ebitda: -1.31
• 1Y Price Target: $117.00
• Price Target Upside: 27.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.4
• Revenue Forecast (FY): $6.41B

• Rating: 68 Neutral
• Price Target: $98.00 ▲(7.07% Upside)

UFP Industries' overall stock score reflects a balance of financial stability and strategic initiatives against current market challenges. The company's strong balance sheet and strategic focus on growth through innovation and acquisitions are positive, but declining revenue and profit margins, along with bearish technical indicators, weigh on the score. The valuation is fair, and the earnings call provided a cautiously optimistic outlook, contributing positively to the overall assessment.

Positive Factors

Strong Financial Position

A robust cash position and strong operating cash flow provide financial flexibility, enabling the company to pursue strategic objectives and return capital to shareholders.

Successful M&A and Share Repurchase

Strategic acquisitions and share repurchases reflect effective capital allocation, enhancing growth potential and shareholder value over the long term.

Expansion and Innovation

Product innovation and market expansion efforts aim to double market share, supporting long-term growth and competitive positioning in the retail segment.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market share.

Profit Margin Pressure

Decreasing profit margins suggest cost management challenges, potentially affecting the company's ability to sustain profitability over time.

Challenges in Site Built Business

Volume and pricing pressures in the Site Built business could hinder revenue and margin recovery, impacting overall business performance.

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 primarily through the sale of its broad range of building materials and products. The company has multiple key revenue streams, including wholesale distribution to large retailers, direct sales to contractors and builders, and e-commerce sales through its retail solutions segment. Additionally, UFPI benefits from partnerships with major home improvement retailers and distributors, which contribute significantly to its sales volume. The company's diversified product offerings and expansive customer base allow it to capitalize on both residential and commercial construction trends, thereby enhancing its earnings potential.

UFP Industries Financial Statement Overview

Summary

UFP Industries faces challenges with declining revenue and profit margins, impacting its income statement performance. Despite this, the company maintains a strong balance sheet with low leverage and a solid equity position. Cash flow generation shows some improvement, but there are concerns about the sustainability of free cash flow relative to net income. Overall, the company demonstrates financial stability but needs to address revenue and margin pressures.

Income Statement

UFP Industries shows a decline in revenue growth with a negative rate of -1.37% TTM, indicating challenges in maintaining sales momentum. The gross profit margin stands at 16.79% TTM, which is a decrease from previous years, suggesting pressure on cost management. Net profit margin is at 5.00% TTM, reflecting a decrease in profitability. The EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.073 TTM, indicating conservative leverage. Return on equity is at 10.08% TTM, showing a decline but still reasonable. The equity ratio is robust, suggesting a stable financial position with a solid asset base.

Cash Flow

Operating cash flow to net income ratio is slightly above 1, indicating adequate cash generation relative to net income. Free cash flow growth is positive at 3.12% TTM, showing improvement. However, the free cash flow to net income ratio is below 0.5, suggesting limited free cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.45B	6.65B	7.22B	9.63B	8.64B	5.15B
Gross Profit	1.08B	1.23B	1.42B	1.79B	1.41B	800.30M
EBITDA	592.02M	701.03M	815.97M	1.06B	838.28M	422.97M
Net Income	320.04M	414.56M	514.31M	692.65M	535.64M	246.78M
Balance Sheet
Total Assets	4.14B	4.15B	4.02B	3.67B	3.25B	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.20B	1.15B	595.41M	323.16M	460.81M
Total Debt	369.26M	356.92M	384.30M	389.09M	437.07M	389.76M
Total Liabilities	927.28M	900.95M	967.58M	1.07B	1.23B	921.74M
Stockholders Equity	3.18B	3.22B	3.00B	2.56B	1.98B	1.46B
Cash Flow
Free Cash Flow	269.35M	410.30M	779.51M	657.44M	361.31M	247.29M
Operating Cash Flow	541.63M	642.57M	959.89M	831.57M	512.48M	336.48M
Investing Cash Flow	-310.47M	-270.75M	-240.16M	-353.94M	-611.19M	-154.72M
Financing Cash Flow	-413.48M	-307.12M	-162.86M	-210.21M	-45.01M	85.22M

UFP Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.53
• 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 Positive. The current price of 91.53 is below the 20-day moving average (MA) of 92.01, above the 50-day MA of 91.29, and below the 200-day MA of 98.09, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 78.15 is Neutral, 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
SLVM	69 Neutral	$1.96B	11.42	18.81%	3.51%	-8.92%	-32.30%
UFPI	68 Neutral	$5.43B	17.40	9.78%	1.51%	-3.90%	-25.97%
LPX	68 Neutral	$5.63B	26.07	12.75%	1.36%	-3.26%	-46.80%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MATV	58 Neutral	$682.97M	―	-68.33%	3.19%	0.39%	-505.56%
MERC	48 Neutral	$139.32M	-0.79	-39.37%	10.82%	-5.85%	9.13%
CLW	46 Neutral	$297.51M	-1.80	-10.47%	―	-21.76%	-1214.73%

UFP Industries Corporate Events

UFP Industries Highlights Q3 2025 Growth Strategy

UFP Industries presented its third quarter 2025 Investor Relations Presentation, highlighting its strategic focus on innovation and market expansion to drive growth. The company aims to achieve above-market growth and improve margins through product and process innovation, strategic acquisitions, and enhanced operational efficiencies. UFP Industries’ long-term financial goals include maintaining a conservative capital structure and achieving a 12.5% adjusted EBITDA margin, reflecting its commitment to sustainable competitive advantages and shareholder value.