Universal Forest Products, Inc. (UFPI) Company Bio
Universal Forest Products provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to three robust markets: retail, construction and industrial. The company was founded in 1955 and is based in Grand Rapids, Michigan.
UFPI 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 Ufp Industries Inc. To summarize, we found that Ufp Industries Inc ranked in the 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Ufp Industries Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 27.48 -- which is good for besting 91.81% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 17.46% of the free cash flow producing stocks we're observing.
UFPI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 41.88% of tickers in our DCF set.
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 UFPI, try ODC, MT, TGLS, SCCO, and BCC.
UFP Industries, Inc. (UFPI) "Universal Forest Products" is a commercial distributor of lumber and treated wood products. The company's main business includes retail, industrial, and construction markets each with leading specialized brands. While there were some concerns during the early stages of the pandemic regarding the operating outlook, surprising strength...
BOOX Research on Seeking Alpha | September 30, 2020
UFP Industries, Inc. (UFPI) Q2 2020 Earnings Conference Call July 23, 2020, 08:30 AM ET Company Participants Dick Gauthier - VP, Business Outreach Matt Missad - CEO Mike Cole - CFO Conference Call Participants Ketan Mamtora - BMO Capital Markets Steve Chercover - D.A. Davidson Reuben Garner - The Benchmark...
Diluted EPS up 23 percent, EBITDA up 22 percentGRAND RAPIDS, Mich., July 22, 2020 (GLOBE NEWSWIRE) -- UFP Industries, Inc. (Nasdaq: UFPI) today announced record net earnings attributable to controlling interest of $66.5 million for the second quarter of 2020, as well as record EPS of $1.08 per diluted share, a 23 percent increase over the same period of 2019. “I am very grateful that our operations were deemed essential and we were able to continue to serve customers during the second quarter,” said CEO Matthew J. Missad. “I am also grateful to our customers, many of whom continued to operate by finding new ways to serve the public and keep their employees safe. Their extraordinary efforts contributed to the success we experienced in the second quarter.“While virus-related shutdowns ne...