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Ufp Technologies (UFPT)
NASDAQ:UFPT
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Ufp Technologies (UFPT) AI Stock Analysis

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UFPT

Ufp Technologies

(NASDAQ:UFPT)

Rating:73Outperform
Price Target:
$244.00
▲(16.83% Upside)
UFPT's overall stock score reflects strong financial performance and strategic growth initiatives in the medical sector. However, technical indicators suggest bearish momentum, and labor challenges present operational risks. The company's moderate valuation and strategic acquisitions provide a balanced outlook.
Positive Factors
Acquisitions
Management noted the recent acquisitions are performing ahead of expectations, with AJR being particularly strong.
Financial Performance
UFP Technologies reported revenue, AEBITDA, and EPS above estimates for the fourth consecutive quarter, showing strong outperformance.
Growth Potential
The company is launching two major programs and has a robust pipeline of new business.
Negative Factors
Acquisition Risks
UFP remains on the lookout for other potential targets, which could lead to potential acquisition risks.
Market Expansion Challenges
Ireland-based AQF, while providing inroads into the European market, may face integration challenges.

Ufp Technologies (UFPT) vs. SPDR S&P 500 ETF (SPY)

Ufp Technologies Business Overview & Revenue Model

Company DescriptionUFP Technologies, Inc. designs and custom manufactures components, subassemblies, products, and packaging utilizing specialized foams, films, and plastics primarily for the medical market. Its single-use and single-patient devices and components are used in a range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging. The company also provides engineered products and components to customers in the automotive, aerospace and defense, consumer, electronics, and industrial markets, which are applied in military uniform and gear components, automotive interior trim, athletic padding, environmentally protective packaging, air filtration, abrasive nail files, and protective cases and inserts. It markets and sells its products in the United States principally through a direct sales force, as well as independent manufacturer representatives. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.
How the Company Makes MoneyUfp Technologies generates revenue primarily through the sale of its packaging products and engineered materials. The company's revenue model is centered around providing customized solutions that meet specific customer requirements, which allows it to charge premium prices for its products. Key revenue streams include direct sales to original equipment manufacturers (OEMs), distribution partnerships, and government contracts. Additionally, Ufp Technologies benefits from long-term relationships with clients in various industries, which provide stable revenue through repeat business and contracts. The company also invests in research and development to create innovative products that capture new market opportunities, further enhancing its earning potential.

Ufp Technologies Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong growth in revenue and strategic expansions, particularly in the medical sector, countered by significant labor challenges and inefficiencies impacting margins and backlog orders. Although there are positive strides with acquisitions and customer growth, the operational challenges create a balanced outlook.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
UFP Technologies reported a 37% revenue growth with 5% organic growth in Q2 2025. Adjusted operating income increased by 35%, and adjusted EPS grew by 27%.
Medical Business Expansion
The medical business grew by 46%, with notable growth in robotic-assisted surgery by 7% and other markets like patient services, interventional and surgical, and wound care each growing over 48%.
Significant Customer Growth
Revenue from the largest customers, Intuitive Surgical and Stryker, grew by 10% and 567%, respectively.
Strategic Acquisitions
Two acquisitions were made: UNIPEC and Techno Plastics Industries (TPI), both expected to be accretive in the first year and acquired at attractive multiples.
Operational Cash Flow and Debt Reduction
The company generated $25.3 million in cash from operations and paid down approximately $19 million in debt, ending the quarter with a leverage ratio well below 1.5x.
Negative Updates
Advanced Components Business Decline
The Advanced Components business, a non-medical segment, declined by approximately 20% as focus shifted to MedTech opportunities.
Labor Turnover Challenges
High labor turnover at the AJR facility due to an E-Verify audit resulted in $1.2 million in margin impact for Q2 and is expected to increase to $2.5 million in Q3.
Backlog and Manufacturing Inefficiency
Approximately $5 million in backlog orders were not completed due to labor issues at AJR, with an anticipated $7 million impact on Q3 revenue.
Gross Margin Decline
Gross margin decreased to 28.8% for Q2 2025, impacted by labor inefficiencies and manufacturing backlog.
Company Guidance
During the UPF Technologies second quarter 2025 earnings call, the company reported a strong performance with a 37% revenue increase, including 5% organic growth. Adjusted operating income rose by 35%, while adjusted EPS increased by 27%. The medical business saw a 46% growth, and the robotic-assisted surgery segment expanded by 7%. Significant growth was also noted in patient services and support, interventional and surgical, and wound care markets, each exceeding 48% growth. Revenue from major customers Intuitive Surgical and Stryker grew by 10% and 567%, respectively. However, the Advanced Components business declined by 20% as the company focused resources on MedTech opportunities. The company faced labor turnover issues at its AJR facility, impacting margins by $1.2 million in Q2, with an expected $2.5 million impact in Q3. Additionally, UPF closed on acquisitions of UNIPEC and Techno Plastics Industries, enhancing capabilities and synergies. The company anticipates a Q4 transition of AJR product manufacturing to the Dominican Republic and expects to address labor inefficiencies and tariffs impacting gross margins.

Ufp Technologies Financial Statement Overview

Summary
UFPT exhibits strong financial performance with robust revenue and profit growth, solid profitability margins, and a stable balance sheet with low leverage. Effective cash flow management further strengthens its financial health, positioning it well for future growth in the medical devices industry.
Income Statement
90
Very Positive
UFPT has demonstrated strong revenue growth with a significant increase from $400.1M in 2023 to $547.6M in TTM, resulting in a revenue growth rate of 8.56%. The gross profit margin stands at 28.99%, indicating effective cost management. The net profit margin improved to 11.59%, reflecting enhanced operational efficiency. Both EBIT and EBITDA margins are robust at 16.31% and 18.47% respectively, showcasing strong profitability.
Balance Sheet
85
Very Positive
The company maintains a solid financial position with a debt-to-equity ratio of 0.046, indicating low leverage. The return on equity is impressive at 17.6%, reflecting high efficiency in using shareholder equity to generate profits. An equity ratio of 56.13% suggests a strong equity base and financial stability.
Cash Flow
88
Very Positive
UFPT's free cash flow growth rate is 3.64%, demonstrating positive cash generation. The operating cash flow to net income ratio is 1.1, indicating healthy cash generation relative to income. The free cash flow to net income ratio stands at 0.93, confirming efficient cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue547.56M504.42M400.07M353.79M206.32M179.37M
Gross Profit158.76M146.69M112.22M90.26M51.11M44.68M
EBITDA105.74M95.80M68.95M56.35M30.04M25.46M
Net Income63.47M58.98M44.92M41.79M15.89M13.37M
Balance Sheet
Total Assets642.64M629.00M404.14M377.54M334.13M203.20M
Cash, Cash Equivalents and Short-Term Investments14.03M13.45M5.26M4.45M11.12M24.23M
Total Debt198.54M206.03M46.04M55.00M84.36M2.21M
Total Liabilities281.97M286.24M118.05M140.00M139.69M26.31M
Stockholders Equity360.67M342.76M286.09M237.54M194.45M176.89M
Cash Flow
Free Cash Flow59.01M56.94M30.84M3.96M8.90M20.67M
Operating Cash Flow69.75M66.59M41.33M17.74M14.29M25.04M
Investing Cash Flow-211.25M-210.16M-10.49M1.29M-101.46M-4.26M
Financing Cash Flow144.41M152.39M-30.02M-25.89M74.05M-285.00K

Ufp Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price208.85
Price Trends
50DMA
229.23
Negative
100DMA
228.31
Negative
200DMA
239.59
Negative
Market Momentum
MACD
-5.51
Positive
RSI
40.91
Neutral
STOCH
15.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPT, the sentiment is Negative. The current price of 208.85 is below the 20-day moving average (MA) of 215.59, below the 50-day MA of 229.23, and below the 200-day MA of 239.59, indicating a bearish trend. The MACD of -5.51 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 15.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFPT.

Ufp Technologies Risk Analysis

Ufp Technologies disclosed 28 risk factors in its most recent earnings report. Ufp Technologies reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ufp Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.69B14.9311.69%1.51%4.02%11.32%
73
Outperform
$1.61B24.2119.29%40.98%34.80%
64
Neutral
$1.24B17.004.76%-0.61%
58
Neutral
$2.32B-376.89%26.27%15.58%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
50
Neutral
$1.22B-38.92%3.53%-2309.98%
49
Neutral
$863.54M-111.91%25.84%-47.67%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UFPT
Ufp Technologies
208.85
-112.39
-34.99%
ATEC
Alphatec Holdings
16.55
10.13
157.79%
CNMD
Conmed
54.69
-18.55
-25.33%
IART
Integra Lifesciences
15.65
-2.85
-15.41%
TNDM
Tandem Diabetes Care
12.39
-30.01
-70.78%
AHCO
AdaptHealth
9.21
-1.89
-17.03%

Ufp Technologies Corporate Events

Business Operations and Strategy
UFP Technologies Highlights Strategic Focus in Investor Update
Positive
Aug 21, 2025

UFP Technologies has released updated presentation materials for investor meetings, highlighting its strategic focus on the medical device industry. The company emphasizes its innovative process from design to delivery, aiming to strengthen customer relationships and expand in high-margin markets. The presentation outlines the company’s growth strategies, including shifting its business to higher-margin opportunities and expanding its presence in various markets such as medical, aerospace, and defense. These updates are expected to enhance UFP Technologies’ market positioning and operational efficiency, potentially impacting stakeholders positively.

M&A TransactionsBusiness Operations and Strategy
UFP Technologies Acquires UNIPEC and TPI for Expansion
Positive
Jul 17, 2025

On July 17, 2025, UFP Technologies announced the acquisition of UNIPEC and TPI, expanding its capabilities in the medical device market. UNIPEC, based in Rockville, Maryland, specializes in precision thermoformed and heat-sealed polymer components for implantable medical devices, enhancing UFP’s thin film platform. TPI, located in Anasco, Puerto Rico, manufactures precision thermoplastic injection-molded components, strengthening UFP’s thermoplastic molding capabilities. These acquisitions align with UFP’s strategy to grow in high-growth, high-barrier sectors, providing unique technologies and expertise that enhance partnerships with leading medical device OEMs.

Business Operations and Strategy
UFP Technologies Highlights Strategic Focus on Medical Market
Positive
Jun 10, 2025

UFP Technologies has released updated presentation materials for investor meetings, highlighting their strategic focus on expanding in the medical device market. The company emphasizes its expertise in design, materials, and global manufacturing, aiming to shift its business towards higher-margin opportunities and expand its presence in the medical, aerospace, defense, and other markets. This move is expected to strengthen UFP’s market positioning and enhance its growth potential, although investors are cautioned about the risks and uncertainties associated with forward-looking statements.

Executive/Board ChangesShareholder Meetings
UFP Technologies Holds Annual Stockholders Meeting
Neutral
Jun 6, 2025

On June 4, 2025, UFP Technologies held its Annual Meeting of Stockholders where several key proposals were voted on. The stockholders elected seven directors to serve until the 2026 Annual Meeting, approved executive compensation, decided on the frequency of future votes on executive compensation, and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025.

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: Aug 22, 2025