Patrick Industries (PATK) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: 1.89%
• Average Volume (3M): 441.82K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.31
• Revenue Growth: 8.12%
• EPS Growth: -5.17%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.11
• Shares Outstanding: 33,555,160
• 10 Day Avg. Volume: 579,071
• 30 Day Avg. Volume: 441,822
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.30
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $95.14
• Price Target Upside: 14.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Patrick Industries presents a stable financial foundation with strong cash flow and profitability. The technical indicators suggest a cautious approach, with some signs of bearish momentum. Valuation remains reasonable, though macroeconomic challenges and reduced shipment outlooks pose risks. Overall, the company is well-positioned for long-term growth, albeit with short-term uncertainties.

Positive Factors

Financial performance

PATK posted results that beat consensus, showing strong sales growth and better-than-expected earnings.

Market positioning

PATK is well-positioned to benefit from the RV industry rebound due to its diverse product portfolio.

Strategic initiatives

The balance sheet remains healthy with significant liquidity, supporting ongoing reinvestment and strategic acquisitions like Elkhart Composites and Medallion Instrumentation Systems.

Negative Factors

Market outlook

The company has taken a more cautious tone for the second half of the year, adjusting down its end-market outlooks due to trends lagging expectations.

Operating margin

Operating margin came in a little lighter than anticipated, with a slightly lower margin base flowing through to 2025 estimates.

Retail trends

Near-term retail and shipment trends are expected to remain challenging despite long-term opportunities.

Patrick Industries Business Overview & Revenue Model

Company Description

Patrick Industries, Inc. manufactures and distributes components, building products, and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, China, and Canada. Its Manufacturing segment manufactures and sells furniture, shelving, wall, countertop, and cabinet product; cabinet door, fiberglass bath fixture, and tile system; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum product; fiberglass and plastic components; RV painting; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinet; polymer-based flooring product; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile moulding; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat covers, tower, top, and frame; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite part, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panel, drywall and finishing product, electronic, audio system component, appliance, marine accessories, wiring product, electrical and plumbing product, fiber reinforced polyester product; cement siding product, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring product, shower door, furniture, fireplace and surround, interior and exterior lighting product, and other products. This segment also offers transportation and logistics service. The company was founded in 1959 and is headquartered in Elkhart, Indiana.

How the Company Makes Money

Patrick Industries generates revenue through the manufacturing and distribution of a diverse array of building and component products, primarily serving the recreational vehicle (RV), manufactured housing, and marine markets. The company sells its products directly to original equipment manufacturers (OEMs) and dealers in these sectors, where its products are integral to the construction and renovation of RVs, manufactured homes, and boats. Additionally, Patrick Industries benefits from strategic acquisitions to expand its product offerings and market reach, which enhances its revenue base. The company's growth is also supported by its ability to adapt to market demand, manage a broad portfolio of products, and maintain strong relationships with key industry players.

Patrick Industries Financial Statement Overview

Summary

Patrick Industries demonstrates solid financial health with efficient operations and stable profitability. The company has managed to improve its balance sheet by reducing debt levels, enhancing financial stability. Cash flow generation remains strong, although recent capital expenditures have impacted free cash flow. Future growth may be challenged by slowing revenue growth, but the company's margins and cash flow capabilities provide a strong foundation.

Income Statement

Patrick Industries shows strong gross and EBIT margins, indicating efficient cost management and operational effectiveness. However, revenue growth has slowed significantly since 2022, which may indicate market saturation or increased competition. Despite this, net profit margins remain stable, reflecting consistent profitability.

Balance Sheet

The company's debt-to-equity ratio has improved over the trailing twelve months, suggesting a more balanced financial structure. However, the equity ratio is relatively moderate, indicating that liabilities form a significant portion of total assets. Return on equity remains healthy, showcasing effective use of shareholder funds.

Cash Flow

Operating cash flow remains strong, consistently covering net income, which reflects robust cash-generating capabilities. However, free cash flow has declined over the past year, mainly due to increased capital expenditures. The free cash flow to net income ratio indicates a stable cash position despite these investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.72B	3.47B	4.88B	4.08B	2.49B
	Gross Profit
835.89M	782.23M	1.06B	801.19M	459.02M
	EBIT
258.04M	260.20M	496.17M	351.71M	173.37M
	EBITDA
424.58M	404.74M	626.93M	456.52M	246.64M
	Net Income Common Stockholders
138.40M	142.90M	328.20M	224.91M	97.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.56M	11.41M	22.85M	122.85M	44.77M
	Total Assets
3.02B	2.56B	2.78B	2.65B	1.75B
	Total Debt
1.52B	1.21B	1.45B	1.45B	937.48M
	Net Debt
1.49B	1.20B	1.43B	1.32B	892.72M
	Total Liabilities
1.89B	1.52B	1.83B	1.88B	1.19B
	Stockholders Equity
1.13B	1.05B	955.17M	767.56M	559.44M
Cash Flow		Free Cash Flow
251.16M	349.69M	331.86M	187.33M	128.05M
	Operating Cash Flow
326.84M	408.67M	411.74M	252.13M	160.15M
	Investing Cash Flow
-512.85M	-86.55M	-321.47M	-574.73M	-337.88M
	Financing Cash Flow
208.16M	-333.56M	-190.27M	400.69M	83.11M

Patrick Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 82.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATK, the sentiment is Neutral. The current price of 82.78 is above the 20-day moving average (MA) of 80.29, below the 50-day MA of 82.99, and below the 200-day MA of 87.05, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 80.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATK.

Patrick Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	72 Outperform	$1.69B	14.13	12.40%	2.07%	1.81%	8.09%
TILE	72 Outperform	$1.15B	13.21	18.15%	0.20%	5.41%	44.50%
AMWD	68 Neutral	$875.84M	9.13	11.09%	―	-6.02%	-10.65%
PATK	67 Neutral	$2.74B	19.86	12.87%	1.89%	8.12%	-5.17%
MBC	64 Neutral	$1.52B	12.44	8.02%	―	1.30%	-44.70%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
MLKN	52 Neutral	$1.09B	38.43	2.28%	4.48%	-2.68%	-56.16%

Patrick Industries Corporate Events

Patrick Industries Reports Q1 2025 Sales Growth

In the first quarter of 2025, Patrick Industries reported a 7% increase in net sales to $1.0 billion, driven by strong demand in the RV and Housing markets, despite declines in Marine and Powersports revenues. The company completed acquisitions of Elkhart Composites and Medallion Instrumentation Systems, enhancing its product offerings and market position. The company’s strategic initiatives and capital allocation strategies have positioned it to navigate macroeconomic uncertainties while maintaining financial strength and flexibility.

Spark’s Take on PATK Stock

According to Spark, TipRanks’ AI Analyst, PATK is a Outperform.

Patrick Industries’ stable financial performance, strong cash flow, and strategic initiatives provide a solid foundation for future growth. However, the bearish technical indicators and challenges in certain market segments temper the overall outlook. The company’s valuation is reasonable, and recent corporate actions support a positive long-term trajectory.

To see Spark’s full report on PATK stock, click here.

Patrick Industries Approves Executive Stock Options Plan

On February 25, 2025, Patrick Industries approved stock options and Stock Appreciation Rights for its Named Executive Officers under the 2009 Omnibus Incentive Plan. This strategic move is likely to impact the company’s executive compensation structure, aligning leadership incentives with long-term company performance and potentially influencing stakeholder confidence.