Added to YB: 2023-12-11
Pitch date: 2023-12-09
UFPI [bullish]
UFP Industries, Inc.
-20.6%
current return
Author Info
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Company Info
UFP Industries, Inc., together with its subsidiaries, designs, manufactures, and supplies wood and non-wood composites, and other materials in the United States and internationally.
Market Cap
$4.5B
Pitch Price
$109.93
Price Target
N/A
Dividend
1.79%
EV/EBITDA
7.59
P/E
17.52
EV/Sales
0.68
Sector
Building Products
Category
value
UFP Industries: Lumber manufacturing is boring? How about a 43-fold return over 30 years?
UFPI: Lumber manufacturer, 43x return over 30 yrs. Decentralized model across construction/retail/packaging. Value-added products grew from 58% to 68% of revenue (2013-Q3'23), gross margins expanded 11.4% to 18.6%. ROIC 26.4% (2022) vs 20% hurdle rate. Acquired 50 businesses at avg 4.6x EBITDA. $682M net cash, 10% FCF yield. Management owns 3.55%, 22.3yr avg tenure. IRR estimates: 8.1%-19.5% across scenarios. Conservative DCF fair value $110.82 (4% discount); optimistic $173.33 (50% upside).
Read full article (12 min)