UFP Industries (UFPI) AI Stock Analysis

• Market Cap: $5.82B
• Dividend Yield: 1.53%
• Average Volume (3M): 334.66K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.82
• 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): 0.65
• Shares Outstanding: 56,594,930
• 10 Day Avg. Volume: 326,895
• 30 Day Avg. Volume: 334,659
• PEG Ratio: -0.71
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 19.80
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 10.20
• 1Y Price Target: $105.00
• Price Target Upside: 2.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.36
• Revenue Forecast (FY): $6.32B

• Rating: 70 Outperform
• Price Target: $120.00 ▲(16.61% Upside)
• Action: Upgraded Date: 02/25/26
• Date: Action: Upgraded 02/25/26

UFPI’s score is driven primarily by strong financial durability (low leverage, solid capitalization, and dependable cash generation) and a reasonably constructive earnings outlook that emphasizes cost-out execution, liquidity, and growth initiatives despite near-term volume headwinds. Technicals are mixed with short-term softness, and valuation appears only fair given the post-2022 earnings normalization.

Positive Factors

Balance Sheet Strength & Liquidity

UFP’s conservative capital structure and large liquid reserves provide lasting financial flexibility. Low net debt and ~$2.2B total liquidity support buybacks, dividend funding, opportunistic M&A, and the ability to weather housing cycles without forcing asset sales or emergency financing.

Consistent Free Cash Flow & Capital Returns

Sustained positive free cash flow underpins durable shareholder return capacity and strategic reinvestment. Even amid cyclical revenue declines, strong cash conversion enabled meaningful buybacks, a dividend increase, and funding for capex and growth initiatives without materially increasing leverage.

Higher‑Margin Product Growth & Innovation

Growing share of value‑added Deckorators and new products diversifies revenue away from cyclical commodity lumber. Capacity additions (Selma complete, Buffalo starting) plus innovation and patents should sustain higher margins and above-market growth as these products scale over the next several quarters.

Negative Factors

Sustained Revenue & Volume Declines

Top-line contraction has been persistent, reflecting structural softness in end markets. Multi-year revenue and volume declines reduce operating leverage, limit margin expansion potential, and make achievement of long-term growth targets more dependent on successful new-product scaling and M&A execution.

High Exposure to Housing Cyclicality

Significant exposure to residential construction creates persistent demand volatility. Weakness in Site‑Built and ProWood compresses near‑term sales and profits and means recovery is tied to housing affordability and builder inventory cycles rather than company-specific actions, limiting predictability over months.

Compressed Profitability & Near‑Term Cost Pressure

Margins and adjusted EBITDA have retraced from peak years and face headwinds from higher marketing and bonus expenses. While a $60M cost‑out program is underway, near‑term profitability remains under pressure, and nonrecurring items complicate comparability and visibility into sustainable operating margins.

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

Financially sound overall: a conservative balance sheet with low leverage and strong capitalization supports resilience (balance sheet strength), and operating cash flow/free cash flow remain consistently positive. Offsetting this, revenue and earnings have declined materially from the 2022 peak, indicating a cyclical downturn and weaker recent growth profile.

Income Statement

Profitability remains solid for the industry, with healthy gross and net margins in recent years (2024 gross margin ~18.4%, net margin ~6.2%). However, results have clearly cooled from the 2022 peak: revenue has declined for three straight years (2023–2025), and earnings have stepped down meaningfully (net income from ~$693M in 2022 to ~$295M in 2025). The margin profile is still respectable, but the growth trajectory is currently negative.

Balance Sheet

The balance sheet looks conservative and resilient. Debt is low relative to equity (debt-to-equity ~0.11–0.15 in 2022–2024) and total debt has been trending down into 2025 (to ~$230M). Equity remains large versus assets, indicating strong capitalization. The main weakness is returns have come off prior highs as profitability normalized (return on equity declining from ~27% in 2021–2022 to ~12.9% in 2024).

Cash Flow

Cash generation is a core strength: operating cash flow has been consistently strong (roughly ~$512M–$960M in 2021–2024; ~$546M in 2025), and free cash flow has remained positive throughout. That said, free cash flow has been volatile—down sharply in 2024 versus 2023, then improving modestly in 2025—reflecting a less stable cash profile than the peak years. In 2023–2024, operating cash flow covered net income well (above 1x), supporting earnings quality.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.32B	6.65B	7.22B	9.63B	8.64B
Gross Profit	1.06B	1.23B	1.42B	1.79B	1.41B
EBITDA	553.29M	701.03M	815.97M	1.06B	838.28M
Net Income	294.79M	414.56M	514.31M	692.65M	535.64M
Balance Sheet
Total Assets	4.02B	4.15B	4.02B	3.67B	3.25B
Cash, Cash Equivalents and Short-Term Investments	959.45M	1.20B	1.15B	595.41M	323.16M
Total Debt	229.76M	356.92M	384.30M	389.09M	437.07M
Total Liabilities	934.19M	900.95M	967.58M	1.07B	1.23B
Stockholders Equity	3.08B	3.22B	3.00B	2.56B	1.98B
Cash Flow
Free Cash Flow	276.36M	410.30M	779.51M	657.44M	361.31M
Operating Cash Flow	545.74M	642.57M	959.89M	831.57M	512.48M
Investing Cash Flow	-273.24M	-270.75M	-240.16M	-353.94M	-611.19M
Financing Cash Flow	-530.14M	-307.12M	-162.86M	-210.21M	-45.01M

UFP Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 102.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Neutral. The current price of 102.91 is below the 20-day moving average (MA) of 110.09, below the 50-day MA of 103.19, and above the 200-day MA of 98.16, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 39.58 is Neutral, neither overbought nor oversold. The STOCH value of 18.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UFPI.

UFP Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPI	70 Outperform	$5.82B	20.60	9.03%	1.53%	-3.90%	-25.97%
LPX	64 Neutral	$5.92B	40.63	8.58%	1.37%	-3.26%	-46.80%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SLVM	56 Neutral	$1.83B	14.28	14.56%	3.51%	-8.92%	-32.30%
MATV	52 Neutral	$593.78M	-1.73	-49.79%	3.26%	0.39%	-505.56%
CLW	44 Neutral	$240.42M	-11.94	-10.47%	―	-21.76%	-1214.73%
MERC	44 Neutral	$120.57M	-0.24	-39.37%	10.77%	-5.85%	9.13%

UFP Industries Corporate Events

UFP Industries Highlights 2025 Results and Growth Strategy

UFP Industries has released its current fourth-quarter 2025 investor relations presentation, detailing results through December 27, 2025, and emphasizing its position as North America’s largest converter and buyer of softwood lumber serving construction, retail and industrial packaging markets. The materials underscore the company’s diversified business mix, international footprint and culture of decentralized, performance-based management as key supports for its long record of profitability.

The presentation reports 2025 net sales of $6.3 billion and adjusted EBITDA of $563.6 million, with strong five-year trends including roughly 13% annual EBITDA growth, about 24% average annual ROIC and margin expansion driven by a rising share of value-added products. Management outlines strategic priorities focused on above-market organic growth, operational excellence, higher-margin core businesses and adjacencies in alternative materials, supported by innovation programs and a venture fund designed to further enhance margins, reduce cyclicality and sustain attractive returns for investors.

The most recent analyst rating on (UFPI) stock is a Hold with a $98.00 price target. To see the full list of analyst forecasts on UFP Industries stock, see the UFPI Stock Forecast page.