UFP Industries (UFPI) AI Stock Analysis

• Market Cap: $5.39B
• Dividend Yield: 1.52%
• Average Volume (3M): 426.62K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.85
• 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: 436,940
• 30 Day Avg. Volume: 426,624
• 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: 0.84
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 7.68
• 1Y Price Target: $117.00
• Price Target Upside: 26.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.4
• Revenue Forecast (FY): $6.41B

• Rating: 69 Neutral
• Price Target: $102.00 ▲(10.44% Upside)

UFP Industries scores a 69, reflecting a stable financial position with strong balance sheet metrics and strategic initiatives to drive future growth. However, challenges in revenue and profit margins, along with mixed technical indicators, weigh on the overall score. The company's proactive approach in the earnings call provides a cautiously optimistic outlook, but market conditions remain challenging.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility for future investments and growth opportunities.

Innovation and Product Expansion

Continued focus on innovation and expanding value-add product offerings positions the company to capture new market opportunities and drive long-term growth.

Cost Reduction Initiatives

Effective cost management through strategic initiatives enhances profitability and operational efficiency, supporting sustainable financial performance.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining market share and demand, potentially impacting long-term growth prospects.

Pressure on Margins

Margin pressures from competitive pricing and cost challenges can affect profitability and limit the company's ability to invest in growth initiatives.

Tariff Impact

New tariffs on lumber imports could increase costs and impact competitiveness, affecting the company's margins and pricing strategies in the long term.

UFP Industries Business Overview & Revenue Model

Company Description

UFP Industries, Inc. (UFPI) is a leading manufacturer and distributor of wood, wood composite, and other building materials. The company operates through various segments, including the UFP Construction, UFP Retail Solutions, and UFP Industrial segments. UFPI serves a diverse range of markets, including residential, commercial, and industrial construction, as well as retail and e-commerce sectors. Its core products include lumber, decking, fencing, and other engineered wood products, along with value-added services such as distribution and supply chain management.

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 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	6.45B	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: 92.36
• 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 92.36 is above the 20-day moving average (MA) of 90.82, above the 50-day MA of 91.22, and below the 200-day MA of 99.14, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.02 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
UFPI	69 Neutral	$5.39B	17.26	9.78%	1.52%	-3.90%	-25.97%
SLVM	69 Neutral	$1.88B	10.95	18.81%	3.76%	-8.92%	-32.30%
LPX	65 Neutral	$5.71B	26.47	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	$672.58M	―	-68.33%	3.27%	0.39%	-505.56%
CLW	46 Neutral	$285.48M	―	-10.47%	―	-21.76%	-1214.73%
MERC	45 Neutral	$116.55M	―	-39.37%	12.93%	-5.85%	9.13%

UFP Industries Corporate Events

UFP Industries Reports Q2 2025 Financial Results

UFP Industries, Inc. is a prominent manufacturer specializing in value-added products for the Retail, Packaging, and Construction sectors, with a global presence spanning North America, Europe, Asia, and Australia. In its second quarter of 2025, UFP Industries reported net sales of $1.84 billion, a 4% decrease from the previous year, alongside net earnings of $100.7 million. The company faced challenges such as tariff uncertainties and soft market demand, yet it remains committed to strategic growth and cost-saving initiatives. Key financial metrics showed a decline, with adjusted EBITDA at $174.1 million, down from $203.9 million the previous year. Despite these challenges, UFP Industries is focusing on innovation, strategic investments, and potential acquisitions to drive future growth. The company maintains a strong balance sheet with $2.1 billion in liquidity, allowing for continued investment in capital projects and shareholder returns. Looking ahead, UFP Industries plans to continue its focus on innovation and strategic investments, aiming to enhance growth and profitability. The company is also pursuing M&A opportunities to complement its core capabilities, with a long-term goal of achieving significant market share growth in its key segments.

UFP Industries’ Earnings Call Highlights Innovation Amid Challenges

UFP Industries’ recent earnings call presented a balanced sentiment, highlighting significant achievements in innovation and cost management while acknowledging challenges in sales, particularly in the site-built and packaging segments. Despite these hurdles, the company maintains a robust balance sheet and a strategic long-term outlook.

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.