Education
About Us
Working with TipRanks
Follow Us
Ufp Technologies (UFPT)
NASDAQ:UFPT
Top Page
Ufp Technologies
(NASDAQ:UFPT)
Rating:80Outperform
Price Target:
$285.00
▲( 21.96% Upside)
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)
Market Cap
$1.84B
Dividend YieldN/A
Average Volume (3M)126.18K
Price to Earnings (P/E)28.1
Beta (1Y)1.45
Revenue Growth34.43%
EPS Growth31.90%
CountryUS
Employees4,146
SectorHealthcare
Sector Strength43
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.47
Shares Outstanding7,706,825
10 Day Avg. Volume122,094
30 Day Avg. Volume126,182
Financial Highlights & Ratios
PEG Ratio2.96
Price to Book (P/B)4.46
Price to Sales (P/S)0.00
P/FCF Ratio26.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$252.00Price Target Upside7.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 makes money through the design, engineering, and manufacturing of customized products and components. The company's revenue model primarily revolves around the sale of its bespoke solutions crafted from foams, plastics, and other specialty materials. Key revenue streams include contracts with medical device manufacturers, defense contractors, and other industrial companies requiring specialized packaging and component solutions. UFP Technologies also benefits from significant partnerships and long-term agreements with major players in these industries, which contribute to a stable revenue flow. The company's focus on sectors with stringent regulatory requirements, such as medical and defense, provides a competitive edge and helps to ensure consistent demand for its high-quality, compliant products.
Ufp Technologies Financial Statement Overview
Summary
Ufp Technologies demonstrates strong financial performance with a notable increase in revenue and profit margins, a solid balance sheet with low leverage, and robust cash flow generation. These factors collectively indicate a healthy financial status and positive growth prospects.Income Statement
Ufp Technologies has shown robust revenue growth, with a significant increase from $400.1M in 2023 to $504.4M in 2024, indicating a growth rate of about 26%. The gross profit margin is strong at 29.1% for 2024, and net profit margin has improved to 11.7%. The company has maintained consistent EBIT and EBITDA margins of 16.0%, reflecting operational efficiency. Overall, the financial results indicate a positive trajectory in revenue and profitability.88
Very Positive
Balance Sheet
The company's balance sheet is solid, with a low debt-to-equity ratio of 0.05, indicating minimal leverage and financial risk. The return on equity stands at 17.2%, suggesting efficient use of equity capital to generate profits. The equity ratio is strong at 54.5%, highlighting a stable financial position. The balance sheet reflects financial stability and prudent management of debt and equity.85
Very Positive
Cash Flow
Ufp Technologies exhibits healthy cash flow management, with a significant increase in operating cash flow from $41.3M in 2023 to $66.6M in 2024. Free cash flow has also grown substantially by 84.5%. The free cash flow to net income ratio of 0.97 and operating cash flow to net income ratio of 1.13 indicate strong cash generation relative to earnings. Overall, the cash flow position is robust, supporting the company's growth and financial health.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 504.42M | 400.07M | 353.79M | 206.32M | 179.37M | Gross Profit |
| 146.69M | 112.22M | 90.26M | 51.11M | 44.68M | EBIT |
| 80.90M | 57.66M | 21.64M | 21.22M | 8.56M | EBITDA |
| 80.90M | 68.95M | 56.35M | 30.04M | 25.46M | Net Income Common Stockholders |
| 58.98M | 44.92M | 41.79M | 15.89M | 13.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.45M | 5.26M | 4.45M | 11.12M | 24.23M | Total Assets |
| 629.00M | 404.14M | 377.54M | 334.13M | 203.20M | Total Debt |
| 16.73M | 46.04M | 55.00M | 84.36M | 2.21M | Net Debt |
| 3.28M | 40.77M | 50.55M | 73.24M | -22.03M | Total Liabilities |
| 286.24M | 118.05M | 140.00M | 139.69M | 26.31M | Stockholders Equity |
| 342.76M | 286.09M | 237.54M | 194.45M | 176.89M |
| Cash Flow | Free Cash Flow | |||
| 56.94M | 30.84M | 3.96M | 8.90M | 20.67M | Operating Cash Flow |
| 66.59M | 41.33M | 17.74M | 14.29M | 25.04M | Investing Cash Flow |
| -210.16M | -10.49M | 1.29M | -101.46M | -4.26M | Financing Cash Flow |
| 152.39M | -30.02M | -25.89M | 74.05M | -285.00K |
Ufp Technologies Technical Analysis
Neutral
233.68
Price Trends
214.10
Positive
232.54
Positive
268.98
Negative
Market Momentum
7.64
Negative
54.48
Neutral
32.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPT, the sentiment is Neutral. The current price of 233.68 is above the 20-day moving average (MA) of 226.71, above the 50-day MA of 214.10, and below the 200-day MA of 268.98, indicating a neutral trend. The MACD of 7.64 indicates Negative momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 2 New Risks
1.
We have incorporated and may further incorporate artificial intelligence (AI) into our internal operations to enhance employee productivity and improve cybersecurity. Implementation of artificial intelligence technologies may result in legal and regulatory risks, reputational harm, or other adverse consequences to our business. Q4, 2024
2.
If significant tariffs or other restrictions are placed on imports or any related counter-measures are taken by foreign countries, our revenue and results of operations may be materially harmed. Potential changes in international trade relations between the United States and other countries could have a material adverse effect on our business. Q4, 2024
Ufp Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.84B | 28.07 | 19.36% | ― | 34.43% | 31.90% | |
73 Outperform | $1.85B | 15.68 | 12.96% | 1.39% | 4.20% | 43.62% | |
65 Neutral | $1.25B | 15.97 | 5.12% | ― | -0.05% | ― | |
56 Neutral | $1.82B | ― | -291.71% | ― | 25.53% | 23.22% | |
55 Neutral | $1.57B | ― | -92.31% | ― | 27.65% | -28.22% | |
53 Neutral | $5.14B | 3.06 | -43.57% | 2.81% | 16.81% | -0.12% | |
52 Neutral | $1.04B | ― | -1.85% | ― | 6.19% | -174.69% |
* Healthcare Sector Average
Performance Comparison
UFPT
Ufp Technologies
233.68
-22.96
-8.95%
ATEC
Alphatec Holdings
12.48
2.36
23.32%
CNMD
Conmed
56.06
-17.15
-23.43%
IART
Integra Lifesciences
12.66
-15.65
-55.28%
TNDM
Tandem Diabetes Care
20.64
-31.09
-60.10%
AHCO
AdaptHealth
8.94
-1.13
-11.22%
Ufp Technologies Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 18.37%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in UFP's medical business and successful integration of recent acquisitions, driving significant growth. However, challenges in the robotic surgery segment and inefficiencies in AJR operations were noted. Despite these issues, the company's strategic initiatives and expansions suggest a positive outlook.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
UFP's revenue grew 41% in the first quarter of 2025, with operating income increasing by 45% and EPS growing by 35% to $2.21.
Strong Performance in Medical Business
The medical business grew by 50%, driven by high demand in the safe patient handling space. Interventional and surgical infection prevention, orthopedics, and advanced wound care segments all grew by more than 25%.
Successful Acquisitions
Recent acquisitions have been performing well, with integrations on track and contributing significantly to growth. The AJR acquisition alone grew about 40% compared to last year.
Strategic Customer Agreements
Signed a key customer agreement providing exclusive manufacturing rights in the safe patient handling space through mid-2030, with expected investment and shared savings from moving operations to the Dominican Republic.
Expansion in the Dominican Republic
Continued progress on Dominican Republic expansion plans, including a new leased facility in Santiago, expansion of the La Romana Robotic Surgery campus, and new equipment installations for upcoming programs.
Positive Cash Flow and Debt Reduction
Generated $13.8 million in cash from operations, paid down approximately $7 million in debt, and ended the quarter with a leverage ratio below 1.5 times.
Negative Updates
Decline in Robotic Surgery Segment
Robotic surgery experienced a 6% decline in Q1, with only modest growth expected in 2025 following an inventory build by the largest customer in 2024.
Decreased Sales in Non-Medical Markets
Sales to non-medical markets decreased by 15% as resources were reallocated to focus on med-tech opportunities.
Inefficiency in AJR Operations
Experienced inefficiencies in AJR operations due to onboarding new direct labor associates, impacting gross margin slightly, with expected continuation through the second quarter.
Impact of Tariffs
Approximately $8 million in sales subject to tariffs, with potential $800,000 impact, though most costs are expected to be passed on.
Company Guidance
In the first quarter of 2025, UFP Technologies reported significant growth across various metrics. Revenue increased by 41.1% to $148.1 million, while operating income rose by 45%, and EPS improved by 35% to $2.21. The medical business, specifically in the safe patient handling segment, grew by 50%, driven by new market share and higher demand, making it the second-largest segment after robotic surgery. Additionally, the interventional and surgical infection prevention, orthopedics, and advanced wound care segments all experienced growth exceeding 25%. Despite a 16.3% decline in Advanced Components, organic growth was at 2.3%, with a 5.4% increase in Medtech. Adjusted operating income surged by 49.5% to $25.8 million, and adjusted EBITDA grew by 45.9% to $30.2 million. Furthermore, the company concluded the quarter with a leverage ratio below 1.5 times, supported by $13.8 million generated in cash from operations.Ufp Technologies Corporate Events
Executive/Board Changes
UFP Technologies Approves Executive Salary Increases and Bonuses
Neutral
Feb 18, 2025
On February 11, 2025, the Compensation Committee of UFP Technologies, a company involved in the production of custom-engineered components for specialized markets, approved increases in the base salaries of its named executive officers effective January 1, 2025. Alongside salary adjustments, stock unit awards were granted to the executive officers, which are subject to performance objectives and vesting requirements. The Compensation Committee also established a 2025 performance bonus plan for CEO R. Jeffrey Bailly and other executive officers, linking bonuses to financial and individual performance goals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.