UFP Industries (UFPI) AI Stock Analysis

• Market Cap: $5.38B
• Dividend Yield: 1.5%
• Average Volume (3M): 388.84K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.90
• Revenue Growth: -3.90%
• EPS Growth: -25.97%
• Country: US
• Employees: 15,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.29
• Shares Outstanding: 58,257,225
• 10 Day Avg. Volume: 449,124
• 30 Day Avg. Volume: 388,844
• PEG Ratio: -0.91
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 15.98
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 9.97
• 1Y Price Target: $117.00
• Price Target Upside: 27.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.4
• Revenue Forecast (FY): $6.41B

• Rating: 70 Outperform
• Price Target: $101.00 ▲(9.78% Upside)

UFP Industries' overall stock score reflects its strong financial health and reasonable valuation, which are offset by bearish technical indicators and mixed earnings call results. The company's robust balance sheet and cash position are significant strengths, but challenges in revenue growth and market conditions weigh on the outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility for future investments and growth opportunities.

Innovation and Product Expansion

Continued focus on innovation and expanding value-add product offerings positions the company to capture new market opportunities and drive long-term growth.

Cost Reduction Initiatives

Effective cost management through strategic initiatives enhances profitability and operational efficiency, supporting sustainable financial performance.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining market share and demand, potentially impacting long-term growth prospects.

Pressure on Margins

Margin pressures from competitive pricing and cost challenges can affect profitability and limit the company's ability to invest in growth initiatives.

Tariff Impact

New tariffs on lumber imports could increase costs and impact competitiveness, affecting the company's margins and pricing strategies in the long term.

UFP Industries Business Overview & Revenue Model

Company Description

UFP Industries, Inc. (UFPI) is a publicly traded company headquartered in Grand Rapids, Michigan, specializing in wood and wood-related products. The company operates through several segments, including industrial, consumer, and construction products. UFPI manufactures a diverse range of items such as treated lumber, pallets, packaging, and various engineered wood products, serving multiple industries including retail, construction, and agriculture. With a commitment to sustainability and innovation, UFP Industries aims to provide high-quality products that meet the evolving needs of its customers.

How the Company Makes Money

UFP Industries generates revenue primarily through the sale of its wood and wood-related products across its various business segments. The company has multiple revenue streams, including direct sales to manufacturers, wholesalers, and retailers, as well as contracts for large-scale construction projects. Key revenue drivers include the demand for treated lumber and engineered wood products, which are essential for construction and DIY projects. Additionally, UFP Industries benefits from strategic partnerships with suppliers and distributors, enabling it to maintain a competitive edge in pricing and product availability. The company's focus on sustainability also attracts environmentally conscious customers, further enhancing its market position and revenue potential.

UFP Industries Financial Statement Overview

Summary

UFP Industries maintains strong financial health with a robust balance sheet and efficient cash flow management. Despite stable profitability, the company faces revenue contraction and declining free cash flow. Continued focus on operational efficiency and revenue growth is essential to mitigate these challenges.

Income Statement

UFP Industries demonstrates stable profitability with a Gross Profit Margin of 17.1% TTM and a Net Profit Margin of 5.3% TTM. However, there has been a noticeable decline in revenue, with a Revenue Growth Rate of -1.7% TTM compared to the previous year. The EBIT margin of 6.4% TTM and EBITDA margin of 9.5% TTM highlight decent operational efficiency but indicate room for improvement.

Balance Sheet

The company's balance sheet is robust with a low Debt-to-Equity Ratio of 0.07 TTM, indicating minimal leverage. A strong Equity Ratio of 77.3% TTM showcases a solid capital structure. Return on Equity is healthy at 11.0% TTM, reflecting efficient use of shareholders' equity.

Cash Flow

UFP Industries exhibits solid cash flow management with an Operating Cash Flow to Net Income Ratio of 1.49 TTM, denoting strong cash conversion. The Free Cash Flow to Net Income Ratio is 0.75 TTM, suggesting effective capital expenditure management. However, the Free Cash Flow Growth Rate is negative, at -36.4% compared to the previous year, indicating challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2022	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	4.99B	6.65B	9.63B	4.42B	4.49B	3.94B
Gross Profit	843.61M	1.23B	1.79B	685.52M	592.89M	542.83M
EBITDA	456.38M	701.03M	1.06B	316.19M	268.09M	234.00M
Net Income	254.83M	414.56M	692.65M	179.65M	148.60M	119.51M
Balance Sheet
Total Assets	4.14B	4.15B	3.67B	1.89B	1.65B	1.46B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.20B	595.41M	186.86M	42.07M	39.61M
Total Debt	234.39M	356.92M	389.09M	163.68M	229.65M	171.85M
Total Liabilities	927.28M	900.95M	1.07B	631.74M	558.86M	490.65M
Stockholders Equity	3.20B	3.22B	2.56B	1.26B	1.09B	974.02M
Cash Flow
Free Cash Flow	191.22M	410.30M	657.44M	264.36M	20.82M	65.47M
Operating Cash Flow	396.72M	642.57M	831.57M	349.29M	116.69M	136.58M
Investing Cash Flow	-217.21M	-270.75M	-353.94M	-142.04M	-121.23M	-137.66M
Financing Cash Flow	-352.05M	-307.12M	-210.21M	-67.27M	4.39M	-5.25M

UFP Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 92.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFPI, the sentiment is Neutral. The current price of 92 is above the 20-day moving average (MA) of 91.70, below the 50-day MA of 94.31, and below the 200-day MA of 101.43, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 67.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UFPI.

UFP Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPI	70 Outperform	$5.38B	17.24	9.78%	1.50%	-3.90%	-25.97%
SLVM	69 Neutral	$1.74B	8.27	24.37%	4.18%	-4.03%	-5.27%
LPX	65 Neutral	$5.38B	24.91	12.75%	1.23%	-3.26%	-46.80%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MATV	58 Neutral	$702.00M	―	-68.30%	3.80%	0.39%	-505.37%
CLW	48 Neutral	$296.87M	―	-10.47%	―	-21.76%	-1214.73%
MERC	41 Neutral	$125.93M	―	-23.39%	15.96%	-2.16%	44.89%

UFP Industries Corporate Events

UFP Industries Reports Q2 2025 Financial Results

UFP Industries, Inc. is a prominent manufacturer specializing in value-added products for the Retail, Packaging, and Construction sectors, with a global presence spanning North America, Europe, Asia, and Australia. In its second quarter of 2025, UFP Industries reported net sales of $1.84 billion, a 4% decrease from the previous year, alongside net earnings of $100.7 million. The company faced challenges such as tariff uncertainties and soft market demand, yet it remains committed to strategic growth and cost-saving initiatives. Key financial metrics showed a decline, with adjusted EBITDA at $174.1 million, down from $203.9 million the previous year. Despite these challenges, UFP Industries is focusing on innovation, strategic investments, and potential acquisitions to drive future growth. The company maintains a strong balance sheet with $2.1 billion in liquidity, allowing for continued investment in capital projects and shareholder returns. Looking ahead, UFP Industries plans to continue its focus on innovation and strategic investments, aiming to enhance growth and profitability. The company is also pursuing M&A opportunities to complement its core capabilities, with a long-term goal of achieving significant market share growth in its key segments.

UFP Industries’ Earnings Call Highlights Innovation Amid Challenges

UFP Industries’ recent earnings call presented a balanced sentiment, highlighting significant achievements in innovation and cost management while acknowledging challenges in sales, particularly in the site-built and packaging segments. Despite these hurdles, the company maintains a robust balance sheet and a strategic long-term outlook.

UFP Industries Reports Strong Q2 2025 Financial Performance

UFP Industries presented its second quarter 2025 Investor Relations Presentation, highlighting its financial performance and strategic goals. The company reported a $6.5 billion net sales for Q2 2025 and emphasized its focus on driving above-market growth, compounding margins, and maintaining a best-in-class return on invested capital. UFP Industries aims to enhance its market position through product and process innovation, capacity consolidation, and strategic acquisitions, while leveraging its scale advantage in the softwood lumber market.

The most recent analyst rating on (UFPI) stock is a Hold with a $125.00 price target. To see the full list of analyst forecasts on UFP Industries stock, see the UFPI Stock Forecast page.