One-glance verdict
Undervalued
$118.93 our estimate vs market $80.56
Wall Street consensus: $102.60 (-13.7% lower than our fair-value estimate)
32% below our estimate, below the bear case
Fundamentals snapshot
UFP Industries, Inc.
UFPI · NMS · Basic Materials · Lumber & Wood Production
Current price
$80.56
52-week range
$77.89 - $118.00
Market cap
$4.44B
Balance sheet
Healthy
33.62x Strong cushion
Net cash $235.20M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 13.3% last year.
- Reward Returns 8.0% on equity, ahead of 80% of its peers.
- Risk Stock trades 27.7% above its 5-year average P/E.
- Risk Operating margin compressed from 9.9% to 5.5% over 3 years.
What this company does
UFP Industries, Inc.
UFP Industries sells wood and related products to three very different groups: retail stores (like lumber and decking for home projects), construction companies (like pre-built roof frames for new houses), and industrial businesses (like wooden pallets for shipping goods). This diverse customer base means the company's success isn't completely tied to the ups and downs of a single industry, such as homebuilding.
How the company got here
UFP Industries started in 1955 as Universal Forest Products, a small company in Michigan that only sold lumber to the manufactured housing industry. A key moment was in 1979 when it began supplying treated lumber to a brand-new retailer called The Home Depot. The company went public in 1993, which means its shares became available for anyone to buy on the stock market, giving it money to grow. Over many years, it expanded by acquiring other companies and adding more than just wood products. To show it was no longer just a lumber supplier, it changed its name to UFP Industries in 2020.
What it actually does
UFP Industries makes and sells a huge variety of wood and wood-alternative products you might see at a home improvement store or that are used to build houses and ship goods. Think of the pressure-treated wood used for a backyard deck, the fencing in a garden, or the pre-built wall frames and roof trusses (the triangular framework for a roof) used to construct a new house. They also make the wooden pallets and crates that companies use to ship everything from electronics to groceries. Essentially, they take raw lumber and other materials and turn them into finished products for retail stores, construction sites, and other businesses.
Retail
This part of the business sells products directly to big-box stores like The Home Depot and Lowe's, as well as other home improvement retailers. When you buy pressure-treated lumber under the brand name ProWood, or composite decking and railings from the Deckorators brand for your backyard, you are buying from this segment. It also includes things like decorative fencing, garden beds, and pre-cut siding for home exteriors. This is a major part of the company, with its products found in the aisles of stores where everyday people and contractors shop for building projects.
Construction
The Construction division makes and supplies essential components for building new homes and commercial buildings. Instead of just selling planks of wood, this segment designs and builds things like roof trusses (the skeleton of a roof), wall panels, and floor systems in a factory. These pre-made parts are then shipped to a construction site, which helps builders work faster. This segment serves everyone from companies that build factory-made homes and RVs to large-scale commercial developers.
Packaging
This segment focuses on making the things companies need to ship their own products safely. Its main products are custom-designed wooden pallets, crates, and boxes used for shipping and material handling by other businesses. They also provide other packaging materials like corrugated boxes and protective foam. This is a business built on repeat customers, because as long as other companies are making and shipping goods, they will need a steady supply of packaging materials.
What management is betting on now
The company's leadership is focused on selling more high-value, branded products, like their Deckorators decking, rather than just basic lumber. They are also investing heavily in new technology and automation to make their factories more efficient. Another key part of their strategy is to continue making strategic acquisitions (buying other companies) that fit well with their existing businesses and help them grow. The main goal is to become less dependent on the fluctuating price of raw lumber and increase their margins (the profit made on each dollar of sales).
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
$199.68M
FY2024 Q4
$78.13M
FY2025 Q1
$-176.07M
FY2025 Q2
$159.46M
FY2025 Q3
$210.23M
FY2025 Q4
$82.74M
FY2026 Q1
$-151.88M
FY2026 Q2
$125.95M
Revenue
—
Net income
$82.87M
Diluted EPS
1.48
Operating cash flow
$164.26M
Free cash flow
$125.95M
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Sources
Revenue
—
Net income
$50.77M
Diluted EPS
0.89
Operating cash flow
$-103.62M
Free cash flow
$-151.88M
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Sources
Revenue
—
Net income
$39.96M
Diluted EPS
0.70
Operating cash flow
$146.62M
Free cash flow
$82.74M
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Sources
Revenue
—
Net income
$75.35M
Diluted EPS
1.29
Operating cash flow
$285.98M
Free cash flow
$210.23M
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Sources
Revenue
—
Net income
$100.73M
Diluted EPS
1.70
Operating cash flow
$221.94M
Free cash flow
$159.46M
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Sources
Revenue
—
Net income
$78.75M
Diluted EPS
1.30
Operating cash flow
$-108.81M
Free cash flow
$-176.07M
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Sources
Revenue
—
Net income
$68.04M
Diluted EPS
1.12
Operating cash flow
$144.91M
Free cash flow
$78.13M
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Sources
Revenue
—
Net income
$99.80M
Diluted EPS
1.64
Operating cash flow
$258.58M
Free cash flow
$199.68M
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Sources
Is it cheap or expensive?
Fair value $118.93 vs current price $80.56
Wall Street consensus is the average analyst price target: $102.60 (-13.7% lower than our fair-value estimate).
Our most-likely fair value is $118.93 a share — about 47.6% above today's price of $80.56, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $235.2M - more cash than debt. Interest coverage 33.6x.
Net debt
$-235.20M
Interest coverage
33.62x
UFP Industries, Inc.'s profit covers its interest bill about 33.6 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
UFPI
BASELINE
UFP Industries, Inc.
Total debt $408.40M Interest coverage 33.62x This is the baseline the peer rows are being compared against.
Total debt $377.00M Interest coverage 18.50x -45% vs UFPI Carries about 1.8x less debt cushion than UFPI.
Total debt $391.00M Interest coverage -25.00x -100% vs UFPI This peer has almost no interest-payment cushion compared with UFPI.
Total debt $549.25M Interest coverage 8.39x -75% vs UFPI Carries about 4.0x less debt cushion than UFPI.
Total debt $5.45B Interest coverage 1.64x -95% vs UFPI Carries about 20.5x less debt cushion than UFPI.
What you should know
The case for and against UFPI
3 Rewards
3 Risks
Rewards
-
Revenue grew 13.3% last year.
-
Returns 8.0% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 27.7% above its 5-year average P/E.
-
Operating margin compressed from 9.9% to 5.5% over 3 years.
-
Insider ownership is only 2.0% (peer median: 5.4%).
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)
18.39x
Forward P/E
14.57x
P/B
1.46x
P/S
0.71x
EV/EBITDA
8.84x
PEG ratio
2.67x
Profitability
How much profit each dollar creates
Gross margin
16.1%
Operating margin
5.5%
Net margin
4.0%
ROE
8.0%
ROA
4.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
3.98x
Quick ratio
2.50x
Total debt
$408.40M
Total cash
$643.59M
Growth
How the business has been compounding
Revenue TTM
$4.47B
Revenue 5Y CAGR
12.4%
EPS TTM
4.38
EPS 5Y CAGR
-23.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$493.24M
Free CF TTM
$276.36M
FCF margin
6.2%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
32.4%
Last ex-div date
2026-09-01