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Patrick Industries
(NASDAQ:PATK)
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Rating:57Neutral
Price Target:
$71.00
▼(-16.74% Downside)
Action:Reiterated
Date:10/16/26
PATK scores in the mid-range primarily due to compressed profitability, a leveraged balance sheet, and weakening recent cash-flow momentum despite still-positive free cash flow. Technicals also detract as the stock remains below major moving averages with negative MACD. Offsetting these are a reasonable valuation (P/E ~14.9 and ~2.76% yield) and a cautiously optimistic earnings outlook supported by diversification (Marine/Powersports strength) and targeted 2026 cash-flow improvement, though RV weakness and working-capital/inventory risks remain key constraints.
Positive Factors
Diversified Segment Growth
Strong Marine and Powersports growth is helping offset weakness in RV, demonstrating that Patrick’s diversified end-market exposure can support consolidated resilience. This broader platform may reduce reliance on any single production cycle and sustain growth as demand patterns shift across recreational and housing markets.
Negative Factors
RV Market Contraction
Patrick remains materially exposed to the RV production cycle, and the current contraction is directly reducing revenue. Management’s expectation for low-double-digit RV retail declines and 285,000–300,000 wholesale units indicates that demand pressure may persist over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Segment Growth
Strong Marine and Powersports growth is helping offset weakness in RV, demonstrating that Patrick’s diversified end-market exposure can support consolidated resilience. This broader platform may reduce reliance on any single production cycle and sustain growth as demand patterns shift across recreational and housing markets.
Read all positive factors
Patrick Industries Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Highlights each segment’s profit after operating costs, showing which units are truly contributing to the company’s bottom line and where cost structure or scale advantages are improving or dragging performance.
Highlights each segment’s profit after operating costs, showing which units are truly contributing to the company’s bottom line and where cost structure or scale advantages are improving or dragging performance.
Data provided by:
The Fly
The FlyPatrick Industries (PATK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.16B
Dividend Yield2.79%
Average Volume (3M)659.98K
Price to Earnings (P/E)14.8
Beta (1Y)0.85
Revenue Growth3.20%
EPS Growth18.00%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)4.56
Shares Outstanding32,118,263
10 Day Avg. Volume684,531
30 Day Avg. Volume659,978
Financial Highlights & Ratios
PEG Ratio-12.31
Price to Book (P/B)2.97
Price to Sales (P/S)0.89
P/FCF Ratio14.56
Enterprise Value/Market Cap2.25
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit5.35
Enterprise Value/Ebitda11.14
Forecast
1Y Price Target
$99.50Price Target Upside16.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.19
Revenue Forecast (FY)$3.87B
Patrick Industries Business Overview & Revenue Model
Company Description
Patrick Industries, Inc. serves as a primary provider of essential components, construction products, and various materials to key sectors such as the recreational vehicle (RV), marine, manufactured housing, and industrial markets. The company's o...
How the Company Makes Money
Patrick Industries makes money primarily by selling manufactured and sourced component products and materials to OEM customers in its core end markets (RV, marine, and manufactured housing), with additional revenue from sales into industrial and o...
Patrick Industries Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook. Company-level results show resilience driven by strategic diversification: strong double-digit growth in Marine (+22%) and Powersports (+28%), modest Housing growth (+2%), technology and AI investments, a sizable M&A synergy opportunity (~$150M), and solid liquidity ($691M). Counterbalancing these positives are meaningful RV end-market weakness (RV revenue -15%, wholesale shipments -16%), a significant decline in H1 operating cash flow (from $189M to $69M), elevated inventory/working capital, modest margin deterioration (adjusted operating margin down ~80 bps YoY) and near-term margin risk (~20 bps) from affordability programs. Overall, the positives around diversification, technology, M&A and balance-sheet flexibility outweigh the near-term operational and cash-flow headwinds but management emphasizes caution and discipline.Positive Updates
Stable Consolidated Revenue and Organic Growth
Second-quarter net sales of $1.04 billion, down less than 1% year-over-year, with estimated organic growth contributing ~7% during the quarter and trailing 12-month net sales of approximately $3.9 billion.
Negative Updates
RV Volume and Revenue Contraction
RV revenue declined 15% YoY to $407 million; RV industry wholesale unit shipments fell 16% in the quarter (≈15,300 fewer units). Management now expects full-year RV retail to be down low double digits and wholesale 285k–300k units in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Consolidated Revenue and Organic Growth
Second-quarter net sales of $1.04 billion, down less than 1% year-over-year, with estimated organic growth contributing ~7% during the quarter and trailing 12-month net sales of approximately $3.9 billion.
Read all positive updates
Company Guidance
Guidance for 2026: Patrick now expects RV retail down low double digits with RV wholesale of 285,000–300,000 units; Marine retail flat to down slightly and Marine wholesale up low single digits; Powersports full‑year unit shipments and organic content up low single digits (implying mid‑to‑high single‑digit growth for the segment); Housing (MH) wholesale shipments and total new housing starts down low‑to‑mid single digits. The company expects 2026 adjusted operating margin to be roughly flat versus 2025, though incremental volume‑based affordability programs could subtract ~20 basis points; operating cash flow $320–$350 million, capital expenditures $70–$80 million (implying roughly $250 million free cash flow) and an effective tax rate of 24–25%. At quarter end net leverage was 3.0x with available liquidity of about $691 million (≈ $661 million unused revolver); in Q2 Patrick returned ≈ $106 million to shareholders ($91M repurchases, $15M dividends), repurchasing ~980,000 shares and leaving roughly $62 million available under the repurchase authorization prior to merger restrictions.Patrick Industries Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.94B | 3.95B | 3.72B | 3.47B | 4.88B | 4.08B |
| Gross Profit | 908.07M | 912.86M | 835.89M | 782.23M | 1.06B | 801.19M |
| EBITDA | 436.20M | 421.78M | 424.58M | 404.74M | 626.93M | 456.52M |
| Net Income | 147.28M | 135.06M | 138.40M | 142.90M | 328.20M | 224.91M |
Balance Sheet | ||||||
| Total Assets | 3.21B | 3.08B | 3.02B | 2.67B | 2.78B | 2.65B |
| Cash, Cash Equivalents and Short-Term Investments | 29.16M | 26.43M | 33.56M | 11.41M | 22.85M | 122.85M |
| Total Debt | 1.65B | 1.64B | 1.52B | 1.21B | 1.45B | 1.45B |
| Total Liabilities | 2.08B | 1.89B | 1.89B | 1.63B | 1.83B | 1.88B |
| Stockholders Equity | 1.13B | 1.18B | 1.13B | 1.05B | 955.17M | 767.56M |
Cash Flow | ||||||
| Free Cash Flow | 127.82M | 241.91M | 251.16M | 349.69M | 331.55M | 187.33M |
| Operating Cash Flow | 208.85M | 329.41M | 326.84M | 408.67M | 411.74M | 252.13M |
| Investing Cash Flow | -164.09M | -206.49M | -512.85M | -86.55M | -321.47M | -574.73M |
| Financing Cash Flow | -37.58M | -130.06M | 208.16M | -333.56M | -190.27M | 400.69M |
Patrick Industries Technical Analysis
Neutral
85.28
Price Trends
74.20
Negative
80.22
Negative
96.35
Negative
Market Momentum
-1.95
Negative
45.08
Neutral
56.87
Neutral
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 85.28 is above the 20-day moving average (MA) of 66.56, above the 50-day MA of 74.20, and below the 200-day MA of 96.35, indicating a neutral trend. The MACD of -1.95 indicates Negative momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 56.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATK.
Patrick Industries Risk Analysis
Patrick Industries disclosed 80 risk factors in its most recent earnings report. Patrick Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Patrick Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $341.91M | 12.57 | 19.78% | 1.08% | 4.10% | 73.26% | |
80 Outperform | $2.06B | 14.03 | 18.54% | 0.31% | 6.54% | 53.02% | |
72 Outperform | $7.19B | 15.59 | 5.52% | ― | 4.62% | 0.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $2.16B | 14.76 | 12.61% | 2.79% | 3.20% | 18.00% | |
56 Neutral | $1.17B | 14.39 | 7.86% | 3.38% | 0.20% | -10.08% | |
49 Neutral | $1.36B | -9.80 | -6.44% | ― | -0.01% | -192.77% |
* Consumer Cyclical Sector Average
PATK
Patrick Industries
70.27
-30.06
-29.96%
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TILE
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LZB
La-Z-Boy Incorporated
30.40
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-5.01%
MHK
Mohawk
128.70
-0.20
-0.16%
MBC
MasterBrand Inc
7.35
-5.64
-43.42%
Patrick Industries Corporate Events
Legal ProceedingsM&A TransactionsRegulatory Filings and Compliance
Patrick Industries faces DOJ review of LCI merger
Negative
Oct 13, 2026
On June 30, 2026, Patrick Industries entered into a merger agreement with LCI Industries that contemplates a two-step transaction, first merging a Patrick subsidiary into LCI and then combining the surviving LCI entity into another Patrick subsidi...
M&A TransactionsRegulatory Filings and Compliance
Patrick Industries refiles HSR notification for LCI merger
Neutral
Sep 10, 2026
Patrick Industries, Inc. and LCI Industries entered into a merger agreement on June 30, 2026 that contemplates a two-step transaction, with LCI first merging into a Patrick subsidiary and ultimately becoming part of an Indiana limited liability co...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Patrick Industries, LCI reach key antitrust filing milestone
Positive
Aug 10, 2026
On June 30, 2026, Patrick Industries, Inc. entered into a merger agreement with LCI Industries involving a two-step transaction in which newly formed subsidiaries Planet First Merger Sub Inc. and Planet Second Merger Sub LLC will sequentially merg...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Patrick Industries Announces Merger Agreement With LCI Industries
Positive
Jul 30, 2026
For the second quarter ended June 28, 2026, Patrick Industries reported net sales of $1.04 billion, down less than 1% year on year, as strong growth in Marine, Powersports and Housing largely offset a 15% revenue decline in the RV segment amid a 1...
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.