UFP Industries (UFPI) AI Stock Analysis

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UFP Industries

(NASDAQ:UFPI)

Rating:72Outperform

Price Target:

$119.00

▲(14.65% Upside)

UFP Industries demonstrates strong financial health and a robust balance sheet, which are significant strengths. However, challenges such as revenue contraction and margin pressures weigh on the overall score. The technical analysis and valuation suggest a balanced outlook, while the earnings call highlights both opportunities and risks. The company's strategic initiatives and innovation efforts are promising but need to be balanced against current market pressures.

Positive Factors

Product Diversification

UFPI’s long-term goal is to have 10% of net sales come from new products produced with alternative materials which help diversify its sales and customer base and historically have a stronger growth and margin profile.

Sourcing Advantage

The company has a best-in-class sourcing scale advantage as North America’s largest buyer of softwood lumber and is by and large the low-cost producer in most of its product categories.

Negative Factors

Macro Uncertainty

UFPI has been negatively impacted by overall macro uncertainty and weak housing fundamentals with limited demand visibility across its three primary operating segments.

Pricing Headwinds

UFPI’s construction and packaging operating segments continue to see pricing headwinds due to ongoing wood commodity deflation and supply/demand imbalances in key product categories.

UFP Industries (UFPI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.20B

Dividend Yield1.33%

Average Volume (3M)342.91K

Price to Earnings (P/E)17.2

Beta (1Y)0.96

Revenue Growth-5.09%

EPS Growth-26.13%

CountryUS

Employees15,000

SectorBasic Materials

Sector Strength68

IndustryPaper, Lumber & Forest Products

Share Statistics

EPS (TTM)1.65

Shares Outstanding60,394,886

10 Day Avg. Volume336,962

30 Day Avg. Volume342,906

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.84

Enterprise Value/Revenue0.80

Enterprise Value/Gross Profit4.68

Enterprise Value/Ebitda8.39

Forecast

1Y Price Target

$119.00

Price Target Upside14.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

UFP Industries Business Overview & Revenue Model

Company DescriptionUFP Industries, Inc. (UFPI) is a publicly traded company headquartered in Grand Rapids, Michigan, specializing in wood and wood-related products. The company operates through several segments, including industrial, consumer, and construction products. UFPI manufactures a diverse range of items such as treated lumber, pallets, packaging, and various engineered wood products, serving multiple industries including retail, construction, and agriculture. With a commitment to sustainability and innovation, UFP Industries aims to provide high-quality products that meet the evolving needs of its customers.

How the Company Makes MoneyUFP Industries generates revenue primarily through the sale of its wood and wood-related products across its various business segments. The company has multiple revenue streams, including direct sales to manufacturers, wholesalers, and retailers, as well as contracts for large-scale construction projects. Key revenue drivers include the demand for treated lumber and engineered wood products, which are essential for construction and DIY projects. Additionally, UFP Industries benefits from strategic partnerships with suppliers and distributors, enabling it to maintain a competitive edge in pricing and product availability. The company's focus on sustainability also attracts environmentally conscious customers, further enhancing its market position and revenue potential.

UFP Industries Earnings Call Summary

Earnings Call Date:Jul 28, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 16, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture. While there were significant achievements such as the strong growth in the Deckorators segment, progress in cost reductions, and a robust cash position enabling shareholder returns, these were offset by declines in overall sales and pressures on margins due to competitive pricing and weaker demand. The site-built business faced notable challenges, impacting overall profitability.

Q2-2025 Updates

Positive Updates

Deckorators Sales Increase

Sales of decking board portfolio featuring SureStone technology increased 45% year over year. The company has secured 1,500 new retail locations for its products and plans to expand capacity to serve these stores by 2026.

Progress on Cost Reduction Initiatives

UFP Industries is on track to achieve $60 million in cost-out savings by 2026. The company has completed the divestiture of a small industrial components business and sold certain real estate assets, potentially providing $15 million in one-time gains.

Strong Cash Position and Shareholder Returns

The company has $842 million in cash and total liquidity of $2.1 billion. It has returned almost $42 million in dividends and $261 million in share repurchases to shareholders.

Introduction of New Products

New product sales totaled $129 million or 7% of sales, with a pathway to increase to 10% of sales over time. The company continues to focus on innovation and expanding value-add product offerings.

Negative Updates

Decline in Net Sales

Net sales for the quarter were $1.8 billion, down 3.5% from last year. This decline was driven by a 3% decline in units and a 1% decline in pricing, reflecting weaker demand and competitive pricing pressures.

Pressure on Margins

Adjusted EBITDA declined 15% to $174 million, with margins falling to 9.5% from 10.7% a year ago. This was due to pricing and cost pressures and lower volumes.

Challenges in Site-Built Business

The site-built business faced a $28 million decline in gross profit due to weak builder sentiment, a softer spring selling season, and higher inventories of new and existing homes.

Retail Sales Decline

Retail sales declined 3% from year-ago levels, largely due to a 7% decline in volumes. The decline was attributed to exiting less profitable lines of business and a customer shift in the Deckorators business.

Company Guidance

During the Q2 2025 earnings call for UFP Industries, Inc., CEO Will Schwartz and CFO Mike Cole provided guidance indicating that the company anticipates low single-digit unit volume declines across each segment for the remainder of 2025. The company reported an earnings per share of $1.70 and an adjusted EBITDA of $174 million for the quarter. They highlighted a $60 million cost-out program expected to be fully realized by the end of 2026, with strategic divestitures potentially yielding $15 million in one-time gains in Q3. The Deckorators brand, featuring SureStone technology, saw a 45% year-over-year sales increase, with the company aiming for new products to comprise 10% of sales. UFP Industries plans to invest $1 billion in growth capital over the next five years, focusing on M&A and innovation. Despite a 3% decline in net sales to $1.8 billion and adjusted EBITDA margin dropping to 9.5%, the company's trailing twelve-month return on invested capital remained robust at 15%. The outlook for the construction segment remains pressured due to competitive pricing and weak demand, but the factory-built business is benefiting from industry trends. UFP Industries maintains a strong balance sheet, with $842 million in cash and total liquidity of $2.1 billion, enabling continued investments in growth and share buybacks.

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

Positive

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

Very Positive

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

Positive

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	6.54B	6.65B	7.22B	9.63B	8.64B	5.15B
Gross Profit	1.12B	1.23B	1.42B	1.79B	1.41B	800.30M
EBITDA	624.02M	701.03M	815.97M	1.06B	838.28M	422.97M
Net Income	347.33M	414.56M	514.31M	692.65M	535.64M	246.78M
Balance Sheet
Total Assets	4.10B	4.15B	4.02B	3.67B	3.25B	2.40B
Cash, Cash Equivalents and Short-Term Investments	875.01M	1.20B	1.15B	595.41M	323.16M	460.81M
Total Debt	375.35M	356.92M	384.30M	389.09M	437.07M	389.76M
Total Liabilities	923.67M	900.95M	967.58M	1.07B	1.23B	921.74M
Stockholders Equity	3.17B	3.22B	3.00B	2.56B	1.98B	1.46B
Cash Flow
Free Cash Flow	261.19M	410.30M	779.51M	657.44M	361.31M	247.29M
Operating Cash Flow	516.63M	642.57M	959.89M	831.57M	512.48M	336.48M
Investing Cash Flow	-301.29M	-270.75M	-240.16M	-353.94M	-611.19M	-154.72M
Financing Cash Flow	-412.99M	-307.12M	-162.86M	-210.21M	-45.01M	85.22M

UFP Industries Technical Analysis

Technical Analysis Sentiment

Positive

Last Price103.79

Price Trends

50DMA

102.02

Positive

100DMA

100.77

Positive

200DMA

107.62

Negative

Market Momentum

MACD

0.21

Positive

RSI

54.39

Neutral

STOCH

41.23

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 103.79 is above the 20-day moving average (MA) of 101.83, above the 50-day MA of 102.02, and below the 200-day MA of 107.62, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 41.23 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPX	73 Outperform	$6.74B	22.83	17.53%	1.11%	-1.44%	-31.12%
UFPI	72 Outperform	$6.20B	17.24	10.71%	1.33%	-5.09%	-26.13%
SLVM	65 Neutral	$1.80B	8.46	24.37%	3.97%	-4.03%	-5.27%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
MATV	61 Neutral	$658.80M	4.60	-69.18%	3.22%	-0.62%	-39.91%
CLW	59 Neutral	$353.00M	33.74	-4.36%	―	-26.71%	-329.19%
MERC	43 Neutral	$213.67M	―	-23.39%	9.40%	-2.16%	44.89%

* Basic Materials Sector Average

Performance Comparison

UFPI

UFP Industries

103.79

-7.59

-6.81%

CLW

Clearwater Paper

22.01

-8.21

-27.17%

LPX

Louisiana-Pacific

99.02

6.77

7.34%

MERC

Mercer International

3.23

-2.84

-46.79%

MATV

Mativ Holdings

12.43

-4.27

-25.57%

SLVM

Sylvamo Corp

45.38

-27.04

-37.34%

UFP Industries Corporate Events

Business Operations and StrategyFinancial Disclosures

UFP Industries Reports Strong Q2 2025 Financial Performance

Positive

Jul 29, 2025

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.

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.Date of analysis: Sep 05, 2025