One-glance verdict
Undervalued
$114.37 our estimate vs market $68.04
Wall Street consensus: $100.82 (-11.8% lower than our fair-value estimate)
41% below our estimate, below the bear case
Fundamentals snapshot
Patrick Industries, Inc.
PATK · NMS · Consumer Cyclical · Recreational Vehicles
Current price
$68.04
52-week range
$63.00 - $148.50
Market cap
$2.19B
Balance sheet
Stretched
3.70x Stretched
Net debt $1.62B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 13.0% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 10.2% to 7.4% over 3 years.
- Risk Net debt grew 2.7% over 3 years.
What this company does
Patrick Industries, Inc.
Patrick Industries acts like a giant supplier for companies that build recreational vehicles (RVs), boats, and factory-built homes, providing a wide variety of parts from furniture to plumbing. The company earns most of its money from the RV market, so its success is closely tied to how many people are buying vehicles for travel and leisure. Because they are a major parts provider, their financial health can be an indicator of broader consumer spending on big-ticket outdoor recreation items.
How the company got here
Patrick Industries started in 1959 in Elkhart, Indiana, the heart of the RV industry, as a simple distributor of wall paneling for manufactured homes. For decades, it grew steadily by supplying parts to the makers of RVs and manufactured houses. The company's major turning point began in the 2010s when it went on a buying spree, acquiring dozens of other companies. This strategy transformed it from a focused supplier into a large, diversified company that makes and sells a huge variety of parts for outdoor recreation and housing markets.
What it actually does
Think of a new RV or a boat; Patrick Industries doesn't make the final vehicle, but it makes and sells many of the essential parts that go inside and outside of it. This includes things you can see and touch, like the kitchen countertops, cabinets, furniture, wall panels, and flooring. They also provide less visible but critical components like electrical wiring, plumbing supplies, and aluminum frames for walls or boat towers. Essentially, they are a one-stop shop for the companies that build recreational vehicles, boats, and manufactured homes.
Manufacturing
This is the company's largest business, making up the vast majority of its revenue. In this segment, Patrick's factories produce a wide range of components, from decorative wall panels and countertops to custom furniture and fiberglass bathroom fixtures. The main customers are other large companies, known as Original Equipment Manufacturers or OEMs, who buy these parts to build the final products like RVs and boats. So, when a big RV brand builds a new motorhome, it pays Patrick for the cabinets, doors, and other interior components it needs for the assembly line.
Distribution
This part of the business acts more like a middleman. Instead of making products, this segment distributes building materials and components made by other companies. This includes items like appliances, electronics, drywall, and lighting fixtures that are needed for RVs, boats, and homes. They also run a transportation and logistics service (the business of moving goods from one place to another), ensuring that all these parts get to the manufacturers when they need them.
What management is betting on now
Management's strategy focuses heavily on growth through acquisitions (buying other companies) to continue diversifying into new markets like boating and powersports. They are also investing in becoming a 'full solutions provider,' aiming to sell manufacturers a complete package of parts rather than just individual components, which they support with new technology like a digital design studio. Finally, their capital allocation (how a company spends its money) strategy prioritizes buying more companies, reinvesting in their own business to improve efficiency, and returning value to shareholders through dividends (a portion of profits paid to investors) and share buybacks (when a company buys its own stock to increase the value of the remaining shares).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$33.68M
FY2024 Q4
$77.23M
FY2025 Q1
$19.91M
FY2025 Q2
$131.12M
FY2025 Q3
$-17.19M
FY2025 Q4
$112.67M
FY2026 Q1
$-32.93M
FY2026 Q2
$65.28M
Revenue
$1.04B
Net income
$43.42M
Diluted EPS
1.28
Operating cash flow
$82.92M
Free cash flow
$65.28M
Fetching…
Sources
Revenue
$997.17M
Net income
$39.48M
Diluted EPS
1.10
Operating cash flow
$-14.01M
Free cash flow
$-32.93M
Fetching…
Sources
Revenue
$924.17M
Net income
$29.08M
Diluted EPS
0.82
Operating cash flow
$130.84M
Free cash flow
$112.67M
Fetching…
Sources
Revenue
$975.63M
Net income
$35.30M
Diluted EPS
1.01
Operating cash flow
$9.10M
Free cash flow
$-17.19M
Fetching…
Sources
Revenue
$1.05B
Net income
$32.44M
Diluted EPS
0.96
Operating cash flow
$149.39M
Free cash flow
$131.12M
Fetching…
Sources
Revenue
$1.00B
Net income
$38.24M
Diluted EPS
1.11
Operating cash flow
$40.08M
Free cash flow
$19.91M
Fetching…
Sources
Revenue
$846.12M
Net income
$14.56M
Diluted EPS
-1.44
Operating cash flow
$102.65M
Free cash flow
$77.23M
Fetching…
Sources
Revenue
$919.44M
Net income
$40.87M
Diluted EPS
1.80
Operating cash flow
$51.53M
Free cash flow
$33.68M
Fetching…
Sources
Is it cheap or expensive?
Fair value $114.37 vs current price $68.04
Wall Street consensus is the average analyst price target: $100.82 (-11.8% lower than our fair-value estimate).
Our most-likely fair value is $114.37 a share — about 68.1% above today's price of $68.04, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $1.6B. Interest coverage 3.7x.
Net debt
$1.62B
Interest coverage
3.70x
Patrick Industries, Inc.'s profit covers its interest bill about 3.7 times over.
Stretched
Worse cushion
Baseline
Better cushion
PATK
BASELINE
Patrick Industries, Inc.
Total debt $1.65B Interest coverage 3.70x This is the baseline the peer rows are being compared against.
Total debt $1.15B Interest coverage 7.84x +112% vs PATK Carries about 2.1x more debt cushion than PATK.
Total debt $909.97M Interest coverage 6.17x +67% vs PATK Carries about 1.7x more debt cushion than PATK.
Total debt $482.90M Interest coverage 2.21x -40% vs PATK Carries about 1.7x less debt cushion than PATK.
Total debt $123.17M Interest coverage 33.36x +800% vs PATK Carries about 9.0x more debt cushion than PATK.
Total debt $41.11M Interest coverage 422.49x +11,306% vs PATK Carries about 114.1x more debt cushion than PATK.
What you should know
The case for and against PATK
3 Rewards
2 Risks
Rewards
-
Returns 13.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 16.2x P/E vs peer median 20.2x (20.0% cheaper).
Risks
-
Operating margin compressed from 10.2% to 7.4% over 3 years.
-
Net debt grew 2.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.20x
Forward P/E
13.13x
P/B
1.93x
P/S
0.55x
EV/EBITDA
8.73x
PEG ratio
3.46x
Profitability
How much profit each dollar creates
Gross margin
23.1%
Operating margin
7.4%
Net margin
3.7%
ROE
13.0%
ROA
5.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.46x
Current ratio
2.67x
Quick ratio
0.80x
Total debt
$1.65B
Total cash
$29.16M
Growth
How the business has been compounding
Revenue TTM
$3.94B
Revenue 5Y CAGR
-0.8%
EPS TTM
4.20
EPS 5Y CAGR
-24.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$208.85M
Free CF TTM
$246.49M
FCF margin
6.3%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
43.1%
Last ex-div date
2026-08-24