Education
About Us
Working with TipRanks
Follow Us
UFP Industries (UFPI)
NASDAQ:UFPI
Top Page
UFP Industries
(NASDAQ:UFPI)
Rating:76Outperform
Price Target:
$118.00
â–²(13.75%Upside)
Positive Factors
Growth and Efficiency
Management has identified, and is already working toward, ~$60M in annual run rate improvements for EBITDA in FY26.
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 Performance
Deckorators building momentum with a ~20% sales increase during the quarter as the Surestone technology continues to attract customers.
Negative Factors
Economic Conditions
UFPI has been negatively impacted by overall macro uncertainty and weak housing fundamentals with limited demand visibility across its three primary operating segments.
Financial Performance
UFP Industries reported softer-than-expected 1Q25 results this week as margin pressures resulted in EBITDA and EPS falling short of Street estimates despite in-line revenue.
Pricing Pressure
Increased pricing competition weighed on margins for the Site Built business already facing soft demand.
UFP Industries (UFPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.27B
Dividend Yield1.31%
Average Volume (3M)468.74K
Price to Earnings (P/E)17.3
Beta (1Y)0.93
Revenue Growth-6.06%
EPS Growth-24.97%
CountryUS
Employees15,000
SectorBasic Materials
Sector Strength73
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)1.30
Shares Outstanding60,394,886
10 Day Avg. Volume357,592
30 Day Avg. Volume468,737
Financial Highlights & Ratios
PEG Ratio-1.70
Price to Book (P/B)1.89
Price to Sales (P/S)0.00
P/FCF Ratio20.49
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit4.66
Enterprise Value/Ebitda1.99
Forecast
1Y Price Target
$120.50Price Target Upside16.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
UFP Industries Business Overview & Revenue Model
Company DescriptionUFP Industries, Inc. (UFPI) is a leading holding company that operates in various sectors including retail, industrial, and construction. The company specializes in providing wood and wood-alternative products, offering a diverse range of products such as pressure-treated wood, engineered wood components, and industrial packaging solutions. UFP Industries serves a wide array of customers, including residential builders, commercial contractors, and consumers, through a network of subsidiaries and facilities across North America and other regions.
How the Company Makes MoneyUFP 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 Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: -2.32%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a mix of strategic growth initiatives and robust cash reserves, yet was overshadowed by sales declines, margin pressures, and uncertainty in the market outlook. While there are promising developments in new product sales and M&A opportunities, immediate challenges in the core business segments persist.Q1-2025 Updates
Positive Updates
Strong Cash Position
Finished the quarter with $905 million in cash, providing ample flexibility for future investments while maintaining a conservative capital structure.
New Product Sales Growth
New product sales totaled $106 million in the quarter, representing 6.7% of sales, with a pathway to reach 10% of sales over time. Surestone technology showcased potential growth opportunities.
M&A Pipeline and Growth Strategy
The M&A pipeline is better than recent years, providing opportunities for acquisitions in alignment with strategic growth objectives.
Capital Expansion Plans
Announced plans for a new Deckorators facility in the Northeast, part of a capital expansion plan aimed at doubling market share over time.
Negative Updates
Sales Decline
Total sales declined 3% from the previous year, impacted by lower volumes and competitive pricing pressures.
Earnings and Margins Pressure
Adjusted EBITDA declined 21% to $142 million, with margins pressured by unfavorable manufacturing variances and higher input costs.
Retail Segment Decline
Retail sales declined 3% due to a 4% decline in units, partially offset by a 1% price increase. Deckorators experienced an 11% decline due to a customer transition.
Packaging and Construction Segments Challenges
Packaging unit sales declined 2%, with challenges in structural packaging and pallet businesses. Construction sales were flat with a 3% decline in site-built units.
Uncertain Outlook
Visibility into the second half of 2025 remains challenged, with ongoing competitive pricing pressures and tariff uncertainties.
Company Guidance
During the Q1 2025 earnings call for UFP Industries Inc., the company provided detailed guidance on its financial and strategic outlook amidst a challenging macroeconomic environment. Total sales declined by 3% year-over-year, primarily due to a 2% reduction in volumes and a 1% decrease in selling prices, leading to an adjusted EBITDA of $142 million and an EBITDA margin of 8.9%. The company emphasized its focus on cost-out programs, aiming for $60 million in structural cost savings by 2026. New product sales totaled $106 million, representing 6.7% of total sales, with plans to expand this to 10% over time. UFP Industries ended the quarter with $905 million in cash, allowing for continued investment in growth and maintaining a conservative capital structure. The company committed to a balanced capital allocation strategy, including $1 billion in growth capital investments over the next five years, with a preference for M&A over greenfield expansion when valuations align. Despite ongoing market volatility, UFP Industries maintained its long-term targets of 7% to 10% unit growth and 12.5% EBITDA margins, while focusing on expanding its portfolio of value-add products and innovation to drive margins and shareholder value.UFP Industries Financial Statement Overview
Summary
UFP Industries demonstrates strong profitability and financial stability, with high gross and net profit margins, a solid balance sheet characterized by low leverage, and efficient cash flow management. However, the decline in revenue and free cash flow presents a challenge.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.78
Positive
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.85
Very Positive
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.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.65B | 7.22B | 9.63B | 8.64B | 5.15B |
| Gross Profit | 1.23B | 1.42B | 1.79B | 1.41B | 800.30M |
| EBITDA | 701.03M | 815.97M | 1.06B | 835.69M | 418.51M |
| Net Income | 414.56M | 514.31M | 692.65M | 535.64M | 246.78M |
Balance Sheet | |||||
| Total Assets | 4.15B | 4.02B | 3.67B | 3.25B | 2.40B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.15B | 595.41M | 323.16M | 460.81M |
| Total Debt | 356.92M | 384.30M | 278.10M | 337.28M | 311.71M |
| Total Liabilities | 900.95M | 967.58M | 1.07B | 1.23B | 921.74M |
| Stockholders Equity | 3.22B | 3.00B | 2.60B | 2.02B | 1.48B |
Cash Flow | |||||
| Free Cash Flow | 410.30M | 779.51M | 657.44M | 361.31M | 247.29M |
| Operating Cash Flow | 642.57M | 959.89M | 831.57M | 512.48M | 336.48M |
| Investing Cash Flow | -270.75M | -240.16M | -353.94M | -611.19M | -154.72M |
| Financing Cash Flow | -307.12M | -162.86M | -210.21M | -45.01M | 85.22M |
UFP Industries Technical Analysis
Positive
103.74
Price Trends
100.39
Positive
102.61
Positive
112.30
Negative
Market Momentum
0.85
Positive
53.30
Neutral
51.80
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 103.74 is above the 20-day moving average (MA) of 103.56, above the 50-day MA of 100.39, and below the 200-day MA of 112.30, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 51.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UFPI.
UFP Industries Risk Analysis
UFP Industries disclosed 17 risk factors in its most recent earnings report. UFP Industries reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UFP Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.49B | 15.87 | 25.19% | 0.07% | 20.35% | 20.44% | |
76 Outperform | $6.27B | 17.31 | 11.33% | 1.31% | -6.06% | -24.97% | |
69 Neutral | $9.21B | 10.15 | 16.16% | 4.27% | 2.78% | 1.50% | |
69 Neutral | $3.32B | 11.04 | 14.26% | 6.76% | -4.67% | -35.04% | |
61 Neutral | $6.25B | 73.52 | -2.75% | 8.59% | -10.20% | -152.18% | |
44 Neutral | C$980.54M | -6.82 | -13.68% | 1.81% | 17.37% | -32.98% |
* Basic Materials Sector Average
Performance Comparison
UFPI
UFP Industries
103.74
-23.55
-18.50%
EMN
Eastman Chemical
77.33
-19.83
-20.41%
HMY
Harmony Gold Mining
14.22
5.49
62.89%
TX
Ternium SA
31.43
-1.61
-4.87%
BCC
Boise Cascade
86.43
-48.41
-35.90%
UFP Industries Corporate Events
Business Operations and Strategy
UFP Industries Highlights Q1 2025 Strategic Growth Plans
Positive
Apr 30, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.