Ufp Technologies (UFPT) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: N/A
• Average Volume (3M): 189.41K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.49
• Revenue Growth: 29.47%
• EPS Growth: 23.24%
• Country: US
• Employees: 4,146
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.25
• Shares Outstanding: 7,712,444
• 10 Day Avg. Volume: 257,383
• 30 Day Avg. Volume: 189,408
• PEG Ratio: 1.63
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 21.66
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 10.21
• Enterprise Value/Ebitda: 15.03
• 1Y Price Target: $289.00
• Price Target Upside: 37.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 9.83
• Revenue Forecast (FY): $635.30M

• Rating: 69 Neutral
• Price Target: $231.00 ▲(9.70% Upside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is driven primarily by strong underlying financial performance and a positive forward outlook from the latest earnings call, supported by a meaningful contract expansion that improves visibility. These positives are tempered by clearly weak technicals (price below key moving averages with negative MACD) and a valuation that is not inexpensive, while cash flow softness in 2025 is a key fundamental watch item.

Positive Factors

Revenue Growth

Sustained multi‑year revenue expansion (from ~$179M in 2020 to ~$603M in 2025) demonstrates scalable demand and successful market penetration. This scale supports fixed‑cost absorption, R&D and capacity investments, and makes growth less dependent on any single short quarter.

Balance Sheet & Cash Generation

Material cash generation and meaningful debt reduction improved leverage (debt-to-equity dropped vs. 2024), providing financial flexibility to fund capex, M&A and capacity builds. A stronger balance sheet lowers refinancing risk and supports multi‑year strategic programs.

Strategic Customer Contracts

Extension and expansion of the Intuitive Surgical supply agreement raises minimums and adds a program, increasing longer‑dated revenue visibility. Volume‑based pricing and cost‑sharing align incentives with a major OEM, deepening integration and supporting durable demand for medical offerings.

Negative Factors

Cash Flow Variability

Free cash flow fell nearly 10% in 2025 even as net income rose, and operating cash flow relative to revenue weakened, indicating working‑capital or timing pressures. Persistent cash conversion volatility can constrain reinvestment, dividend policy and reduces margin of safety during slowdowns.

Customer Concentration & Limited Visibility

Dependence on large OEM programs with withheld volume details reduces external visibility and heightens revenue concentration risk. If major customers shift sourcing or delay program volumes, the company’s topline and factory throughput could be materially affected over the medium term.

Operational & Cybersecurity Risks

Recurring AJR labor inefficiencies and backlog drove multimillion dollar costs and required overtime/temps; a Feb ransomware incident also forced manual processes. These execution and cyber risks can persistently raise costs, compress margins, and complicate capacity expansion if not fully remediated.

Ufp Technologies Business Overview & Revenue Model

Company Description

UFP 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 Money

UFP Technologies generates revenue through the sale of its custom-engineered products, which are primarily focused on protective packaging, molded products, and specialty foam solutions. The company has multiple key revenue streams, including direct sales to customers in diverse sectors such as healthcare, automotive, and electronics. Additionally, UFP Technologies benefits from long-term contracts with major clients that ensure a steady flow of income. The company also invests in research and development to innovate and expand its product offerings, which helps maintain competitive advantage and drive sales growth. Strategic partnerships with suppliers and collaborations with clients for customized solutions further enhance its revenue potential, allowing UFP Technologies to capture a larger market share.

Ufp Technologies Financial Statement Overview

Summary

Strong multi-year revenue expansion and solid profitability (2025 net margin ~11%, EBIT margin ~15%). Balance sheet leverage improved in 2025 (lower debt-to-equity) and returns remain healthy, but cash flow quality is the main constraint: 2025 free cash flow declined despite higher profits and cash conversion weakened versus 2024.

Income Statement

Revenue has expanded sharply over the last several years (from $179M in 2020 to $603M in 2025), with 2025 showing very strong growth (81%). Profitability is solid and consistent for the sector, with 2025 gross margin ~28% and net margin ~11%, and operating profitability remaining healthy (EBIT margin ~15%, EBITDA margin ~19%). The main weakness is modest margin compression versus 2024 (gross, EBIT and net margins slightly lower), suggesting growth is coming with some pricing/mix or cost pressure.

Balance Sheet

Leverage looks manageable and improved meaningfully in 2025, with debt-to-equity dropping to ~0.32 from ~0.60 in 2024, alongside a larger equity base. Returns remain strong and stable (return on equity ~16% in 2025, broadly consistent with prior years). The key risk is the sizable jump in absolute debt over the period (notably above 2023 levels), which could reduce flexibility if growth slows or margins weaken.

Cash Flow

Cash generation is generally supportive: free cash flow tracks net income well (about 86% of net income in 2025), indicating earnings quality is decent. However, 2025 free cash flow declined (~-9.7% growth) despite higher profits, and operating cash flow relative to revenue weakened in 2025 versus 2024, pointing to working-capital or timing headwinds. Overall cash flow is positive but shows more variability than the income statement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	602.80M	504.42M	400.07M	353.79M	206.32M
Gross Profit	170.41M	146.69M	112.22M	90.26M	51.11M
EBITDA	115.74M	95.80M	68.95M	67.37M	29.65M
Net Income	68.31M	58.98M	44.92M	41.79M	15.89M
Balance Sheet
Total Assets	655.08M	629.00M	404.14M	378.19M	334.13M
Cash, Cash Equivalents and Short-Term Investments	20.30M	13.45M	5.26M	4.45M	11.12M
Total Debt	135.46M	206.03M	46.04M	68.37M	84.36M
Total Liabilities	231.20M	286.24M	118.05M	140.65M	139.69M
Stockholders Equity	423.88M	342.76M	286.09M	237.54M	194.45M
Cash Flow
Free Cash Flow	78.98M	56.94M	30.84M	3.96M	8.90M
Operating Cash Flow	91.91M	66.59M	41.33M	17.74M	14.29M
Investing Cash Flow	-27.60M	-210.16M	-10.49M	1.29M	-101.46M
Financing Cash Flow	-58.16M	152.39M	-30.02M	-25.89M	74.05M

Ufp Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 210.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 210.58 is below the 20-day moving average (MA) of 246.19, below the 50-day MA of 245.12, and below the 200-day MA of 226.99, indicating a bearish trend. The MACD of -6.89 indicates Positive momentum. The RSI at 31.57 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFPT.

Ufp Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	69 Neutral	$1.62B	23.99	17.82%	―	29.47%	23.24%
CNMD	61 Neutral	$1.42B	30.45	6.60%	2.02%	4.69%	-51.57%
AORT	59 Neutral	$1.84B	192.79	-2.45%	―	9.81%	-1067.00%
AHCO	56 Neutral	$1.24B	-17.24	-4.62%	―	-0.23%	―
SIBN	56 Neutral	$685.45M	-35.12	-12.91%	―	23.27%	43.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IART	47 Neutral	$886.93M	-1.69	-39.90%	―	4.99%	-7151.40%

Ufp Technologies Corporate Events

UFP Technologies Updates Investor Presentation on Medical Growth Strategy

UFP Technologies has released updated investor presentation materials outlining its business profile and strategic positioning ahead of meetings with investors and other stakeholders. The March 2026 materials detail the company’s emphasis on high-margin, long-term manufacturing opportunities in the fast-growing global medical device market, including its deep integration with major medical OEMs and its role in helping customers bring devices to market through design, materials expertise, and global manufacturing.

The presentation underscores management’s focus on leveraging non-GAAP performance metrics to evaluate operations and communicate trends, while warning that the outlook for growth, acquisitions, capacity expansion, and customer demand is subject to significant risks and uncertainties. Disclosures highlight potential headwinds ranging from customer concentration and supply chain disruptions to geopolitical risks, regulatory changes, cybersecurity threats, and the growing impact and regulatory risk of artificial intelligence technologies on its operations and markets.

The most recent analyst rating on (UFPT) stock is a Buy with a $289.00 price target. To see the full list of analyst forecasts on Ufp Technologies stock, see the UFPT Stock Forecast page.

UFP Technologies Expands Key Intuitive Surgical Supply Agreement

On February 19, 2026, UFP Technologies, through a wholly owned subsidiary, amended its long-standing Manufacturing Supply Agreement with strategic medical customer Intuitive Surgical, effective January 1, 2026. The amendment extends the contract term by two years to December 31, 2029 and materially raises minimum annual volumes for the largest program in 2028 and 2029, while adding an additional program under the agreement.

The revised agreement also introduces volume-based pricing tied to minimum purchase thresholds and cost-sharing provisions, aligning incentives between the parties. The changes signal deeper integration with a key medical customer and could enhance revenue visibility for UFP Technologies, though the company notes that actual purchase volumes and its ability to sustain higher production levels remain subject to operational and customer demand risks.

The most recent analyst rating on (UFPT) stock is a Hold with a $278.00 price target. To see the full list of analyst forecasts on Ufp Technologies stock, see the UFPT Stock Forecast page.

UFP Technologies Finalizes CEO Succession and Executive Compensation

UFP Technologies’ board Compensation Committee met on February 10, 2026 to finalize the previously announced succession plan that will see Mitchell C. Rock become chief executive officer on June 4, 2026, approving his employment terms including a $700,000 base salary, performance-based bonus eligibility up to 100% of salary, and substantial restricted stock unit and severance protections tied to both normal termination scenarios and potential change-of-control events. The committee also raised base salaries for key named executive officers effective January 1, 2026, granted multi-year stock unit and performance share awards with vesting and performance conditions extending to 2029, and set 2026 cash bonus targets for outgoing CEO R. Jeffrey Bailly, Rock, and other senior executives, underscoring a structured leadership transition and tightly performance-linked pay framework designed to align management incentives with shareholder interests over the next several years.

The most recent analyst rating on (UFPT) stock is a Hold with a $278.00 price target. To see the full list of analyst forecasts on Ufp Technologies stock, see the UFPT Stock Forecast page.

UFP Technologies Highlights Strategic Focus in Investor Update

UFP Technologies has released updated presentation materials for investor meetings, highlighting its strategic focus on high-margin, long-term manufacturing opportunities in the medical device market. The company emphasizes its expertise in design, materials, and global manufacturing, aiming to strengthen customer relationships and expand its presence in various markets, including medical, aerospace, and defense. The announcement underscores UFP Technologies’ commitment to innovation and growth, with potential implications for stakeholders in terms of increased production capacity and market expansion.

The most recent analyst rating on (UFPT) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Ufp Technologies stock, see the UFPT Stock Forecast page.

UFP Technologies Announces CEO Retirement and Succession

On December 1, 2025, UFP Technologies announced the retirement of its long-serving CEO, R. Jeffrey Bailly, effective June 4, 2026. Bailly, who has led the company for 31 years, will transition to the role of Executive Chairman of the Board. Mitchell Rock, currently the President of UFP Technologies, will succeed Bailly as CEO. Rock has been with the company since 1991 and has held various leadership roles, demonstrating a deep understanding of the markets UFP serves. This leadership transition is expected to continue the company’s strategic growth and maintain its strong market position.

The most recent analyst rating on (UFPT) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Ufp Technologies stock, see the UFPT Stock Forecast page.