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UFP Industries (UFPI)
NASDAQ:UFPI
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UFP Industries
(NASDAQ:UFPI)
68Neutral
Positive Factors
Market Share Expansion
Deckorators improves its launch pad, with plans to double its market share in the next few years, supported by $200M in capacity additions and a new Northeast plant expected to be fully operational by early FY26.
Product Sales Growth
Deckorators building momentum with a ~20% sales increase during the quarter as the Surestone technology continues to attract customers.
Profitability and Growth Opportunities
Profitability has sustained in the low-double-digit EBITDA margin range and the company has identified $1B in investment opportunities to both drive more growth and efficiencies.
Negative Factors
Demand and Competitiveness
Near-term turbulence could persist until more stabilization in demand and competitiveness is observed.
Margin Pressures
UFP Industries reported softer-than-expected 1Q25 results this week as margin pressures resulted in EBITDA and EPS falling short of Street estimates despite in-line revenue.
Pricing Competition
Increased pricing competition weighed on margins for the Site Built business already facing soft demand.
UFP Industries (UFPI) vs. S&P 500 (SPY)
Market Cap
$6.20B
Dividend Yield1.31%
Average Volume (3M)555.29K
Price to Earnings (P/E)16.8
Beta (1Y)0.95
Revenue Growth-6.06%
EPS Growth-24.94%
CountryUS
Employees15,000
SectorBasic Materials
Sector Strength59
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)1.30
Shares Outstanding60,824,417
10 Day Avg. Volume498,187
30 Day Avg. Volume555,294
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market Cap0.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.88
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$120.00Price Target Upside17.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
UFP Industries Business Overview & Revenue Model
Company DescriptionUFP Industries, Inc. (UFPI) is a leading manufacturer and distributor of wood and wood-alternative products, serving multiple industries including retail, construction, and industrial sectors. The company specializes in producing a vast array of products such as pressure-treated lumber, engineered wood components, and outdoor living products. With a focus on innovation and sustainability, UFPI delivers high-quality, customized products to meet the diverse needs of its global customer base.
How the Company Makes MoneyUFP Industries generates revenue through the manufacture and sale of a wide range of wood and wood-alternative products. The company's key revenue streams include retail sales of lumber and building materials to home improvement centers, sales of customized engineered wood products to the construction industry, and industrial packaging solutions. UFPI's earnings are bolstered by its strategic partnerships with major retailers and its ability to adapt to market demands by offering sustainable and innovative product solutions. Additionally, the company's vertically integrated supply chain helps in maintaining cost efficiencies and optimizing production capabilities.
UFP Industries Financial Statement Overview
Summary
UFP Industries exhibits strong financial metrics with high profitability margins and a robust balance sheet, characterized by low leverage and high equity. Despite a significant decline in revenue and free cash flow, the company maintains operational efficiency and strong cash generation.Income Statement
UFP Industries shows strong profitability with a high gross profit margin of 17.7% and a healthy net profit margin of 5.6% for TTM. However, revenue has declined over the past year from $9.63 billion to $6.61 billion, leading to a negative revenue growth rate of -31.3%. EBIT and EBITDA margins remain solid at 6.8% and 9.7%, respectively, indicating efficient operations.―
Balance Sheet
The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.07, suggesting low leverage and financial prudence. The return on equity stands at 11.4%, reflecting effective use of shareholder equity to generate income. A strong equity ratio of 78.5% highlights financial stability and low reliance on debt.85
Cash Flow
UFP Industries demonstrates strong cash flow management with a free cash flow to net income ratio of 0.81, indicating that a substantial portion of net income is converted into free cash flow. The operating cash flow to net income ratio is notably high at 1.48, showcasing excellent cash-generating capabilities. However, free cash flow has decreased by 26.8% from the previous period.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.65B | 7.22B | 9.63B | 8.64B | 5.15B | Gross Profit |
| 1.23B | 1.42B | 1.79B | 1.41B | 800.30M | EBIT |
| 492.24M | 652.30M | 950.18M | 737.55M | 345.83M | EBITDA |
| 701.03M | 815.97M | 1.06B | 835.69M | 418.51M | Net Income Common Stockholders |
| 414.56M | 514.31M | 692.65M | 535.64M | 246.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.20B | 1.15B | 595.41M | 323.16M | 460.81M | Total Assets |
| 4.15B | 4.02B | 3.67B | 3.25B | 2.40B | Total Debt |
| 356.92M | 384.30M | 278.10M | 337.28M | 311.71M | Net Debt |
| -814.91M | -734.03M | -281.30M | 50.62M | -124.80M | Total Liabilities |
| 900.95M | 967.58M | 1.07B | 1.23B | 921.74M | Stockholders Equity |
| 3.22B | 3.00B | 2.60B | 2.02B | 1.48B |
| Cash Flow | Free Cash Flow | |||
| 410.30M | 779.51M | 657.44M | 361.31M | 247.29M | Operating Cash Flow |
| 642.57M | 959.89M | 831.57M | 512.48M | 336.48M | Investing Cash Flow |
| -270.75M | -240.16M | -353.94M | -611.19M | -154.72M | Financing Cash Flow |
| -307.12M | -162.86M | -210.21M | -45.01M | 85.22M |
UFP Industries Technical Analysis
Negative
101.95
Price Trends
106.24
Negative
111.36
Negative
118.69
Negative
Market Momentum
-1.55
Positive
43.97
Neutral
25.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Negative. The current price of 101.95 is below the 20-day moving average (MA) of 104.53, below the 50-day MA of 106.24, and below the 200-day MA of 118.69, indicating a bearish trend. The MACD of -1.55 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFPI.
UFP Industries Risk Analysis
UFP Industries disclosed 17 risk factors in its most recent earnings report. UFP Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UFP Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $9.62B | 16.10 | 25.19% | 0.92% | 20.35% | 20.44% | |
68 Neutral | $9.00B | 9.92 | 16.16% | ― | 2.78% | 1.50% | |
68 Neutral | $6.20B | 16.81 | 11.39% | 1.31% | -6.06% | -24.94% | |
64 Neutral | $9.97B | 28.18 | 0.86% | 0.45% | -14.74% | -88.78% | |
64 Neutral | $3.66B | 10.04 | 17.32% | 0.86% | -1.67% | -21.20% | |
60 Neutral | $5.92B | 73.52 | -0.44% | 10.29% | -10.20% | -152.17% | |
49 Neutral | $1.96B | -1.28 | -21.20% | 3.73% | 0.86% | -29.40% |
* Basic Materials Sector Average
Performance Comparison
UFPI
UFP Industries
101.95
-14.71
-12.61%
EMN
Eastman Chemical
77.92
-17.55
-18.38%
HMY
Harmony Gold Mining
15.05
6.20
70.06%
TX
Ternium SA
30.14
-9.11
-23.21%
X
United States Steel
44.05
6.20
16.38%
BCC
Boise Cascade
96.15
-37.22
-27.91%
UFP Industries Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q1-2025)
| % Change Since: -4.34%|
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a mix of strategic growth initiatives and robust cash reserves, yet was overshadowed by sales declines, margin pressures, and uncertainty in the market outlook. While there are promising developments in new product sales and M&A opportunities, immediate challenges in the core business segments persist.Q1-2025 Updates
Positive Updates
Strong Cash Position
Finished the quarter with $905 million in cash, providing ample flexibility for future investments while maintaining a conservative capital structure.
New Product Sales Growth
New product sales totaled $106 million in the quarter, representing 6.7% of sales, with a pathway to reach 10% of sales over time. Surestone technology showcased potential growth opportunities.
M&A Pipeline and Growth Strategy
The M&A pipeline is better than recent years, providing opportunities for acquisitions in alignment with strategic growth objectives.
Capital Expansion Plans
Announced plans for a new Deckorators facility in the Northeast, part of a capital expansion plan aimed at doubling market share over time.
Negative Updates
Sales Decline
Total sales declined 3% from the previous year, impacted by lower volumes and competitive pricing pressures.
Earnings and Margins Pressure
Adjusted EBITDA declined 21% to $142 million, with margins pressured by unfavorable manufacturing variances and higher input costs.
Retail Segment Decline
Retail sales declined 3% due to a 4% decline in units, partially offset by a 1% price increase. Deckorators experienced an 11% decline due to a customer transition.
Packaging and Construction Segments Challenges
Packaging unit sales declined 2%, with challenges in structural packaging and pallet businesses. Construction sales were flat with a 3% decline in site-built units.
Uncertain Outlook
Visibility into the second half of 2025 remains challenged, with ongoing competitive pricing pressures and tariff uncertainties.
Company Guidance
During the Q1 2025 earnings call for UFP Industries Inc., the company provided detailed guidance on its financial and strategic outlook amidst a challenging macroeconomic environment. Total sales declined by 3% year-over-year, primarily due to a 2% reduction in volumes and a 1% decrease in selling prices, leading to an adjusted EBITDA of $142 million and an EBITDA margin of 8.9%. The company emphasized its focus on cost-out programs, aiming for $60 million in structural cost savings by 2026. New product sales totaled $106 million, representing 6.7% of total sales, with plans to expand this to 10% over time. UFP Industries ended the quarter with $905 million in cash, allowing for continued investment in growth and maintaining a conservative capital structure. The company committed to a balanced capital allocation strategy, including $1 billion in growth capital investments over the next five years, with a preference for M&A over greenfield expansion when valuations align. Despite ongoing market volatility, UFP Industries maintained its long-term targets of 7% to 10% unit growth and 12.5% EBITDA margins, while focusing on expanding its portfolio of value-add products and innovation to drive margins and shareholder value.UFP Industries Corporate Events
Business Operations and Strategy
UFP Industries Highlights Q1 2025 Strategic Growth Plans
Positive
Apr 30, 2025
UFP Industries‘ first quarter 2025 Investor Relations Presentation highlights the company’s strategic focus on driving above-market growth and improving margins. The company aims to achieve sustainable competitive advantages through diversification, innovation, and efficient capital allocation. UFP Industries plans to enhance its operations with automation and robotics, and expand its market presence through new products and strategic acquisitions, positioning itself for long-term financial growth.
Spark’s Take on UFPI Stock
According to Spark, TipRanks’ AI Analyst, UFPI is a Neutral.
UFP Industries exhibits strong financial stability with manageable debt levels and solid cash flow, despite recent challenges in revenue and profitability. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and displaying negative momentum indicators. Valuation metrics suggest a fair market value, neither significantly overvalued nor undervalued. The earnings call highlighted strategic initiatives for future growth amidst challenging market conditions, while recent corporate events underscored a commitment to innovation and margin expansion. Overall, the company is positioned to navigate short-term challenges while pursuing long-term growth strategies.
To see Spark’s full report on UFPI stock, click here.
Business Operations and StrategyFinancial Disclosures
UFP Industries Highlights Growth and Margin Expansion Plans
Positive
Feb 18, 2025
UFP Industries presented its fourth quarter 2024 Investor Relations Presentation, highlighting a focus on driving above-market growth and expanding margins over time. The company has achieved a 30% average annual total shareholder return over the past five years and aims to sustain a 12.5% adjusted EBITDA margin. UFP Industries is committed to innovation, with plans for product and process innovation, and leveraging technology to enhance productivity and efficiency.
Executive/Board Changes
UFP Industries Appoints William D. Schwartz as President
Neutral
Feb 14, 2025
UFP Industries announced that William D. Schwartz has been appointed as the President of the company, effective December 29, 2024, coinciding with the beginning of fiscal 2025. Schwartz was previously named the CEO with the same effective date, and his compensation remains unchanged despite the additional presidential role.
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.