Patrick Industries is a manufacturer of component products and distributor of building products serving the recreational vehicle, manufactured housing, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The company was founded in 1959 and is based in Elkhart, Indiana.
PATK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Patrick Industries Inc. To summarize, we found that Patrick Industries Inc ranked in the 63th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for PATK, they are:
Its compound free cash flow growth rate, as measured over the past 5.41 years, is 0.22% -- higher than 61.83% of stocks in our DCF forecasting set.
Patrick Industries Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 16.02% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), Patrick Industries Inc has a reliance on debt greater than 62.94% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PATK, try JELD, ROCK, CNR, TREC, and CLW.
ELKHART, Ind., Sept. 28, 2020 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company") announced today that it has completed the acquisition of Englewood, Colorado-based Front Range Stone, Inc. ("Front Range"), a fabricator and installer of a full suite of…
Source: Patrick Industries COVID-19 practically shut down business activity and led to millions of workers being displaced. Prior to the pandemic, I thought cyclical industries like oil, housing and autos were vulnerable. They may continue to struggle until the economy fully reopens. That could leave companies like Patrick Industries (PATK)...
Shock Exchange on Seeking Alpha | September 22, 2020
Patrick Industries (PATK) expects FY20 shipments of wholesale units to be up low single-digits reflecting very low dealer inventory and strong retail demand that offsets the market disruption related to COVID-19.Press Release...
Certain statements made in today's conference call regarding Patrick Industries and its operations may be considered forward-looking statements under the securities laws. There are a number of factors, many of which are beyond the company's control, including, without limitation, the disruption of business resulting from unforeseen events, such as the COVID-19 pandemic and its impact on economic conditions, capital financial markets and our operations, which could cause the actual results and events to differ materially from those described in the forward-looking statements.