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 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 329.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PATK, they are:
The company's compound free cash flow growth rate over the past 5.75 years comes in at 0.4%; that's greater than 77.11% of US stocks we're applying DCF forecasting to.
Patrick Industries Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 18.54% 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 54.55% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
STLD, ZEUS, CNR, BCC, and KL can be thought of as valuation peers to PATK, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of component and building products for the recreational vehicle ("RV"), marine, manufactured housing ("MH"), and industrial markets, today reported financial results for the second quarter ended June 28, 2020.