One-glance verdict
Undervalued
$118.93 our estimate vs market $77.15
Wall Street consensus: $102.60 (-13.7% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
UFP Industries, Inc.
UFPI · NMS · Basic Materials · Lumber & Wood Production
Current price
$77.15
52-week range
$75.20 - $118.00
Market cap
$4.26B
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 66% of its peers.
- Risk Stock trades 22.3% 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 makes a wide range of products from wood and similar materials for different types of customers. They supply everything from treated lumber and fencing for your backyard projects to the wooden frames used to build new houses and the custom pallets needed to ship goods. This means the company doesn't rely on just one market, so a slowdown in home construction could potentially be balanced by strong demand for shipping materials.
How the company got here
UFP Industries started in 1955 as Universal Forest Products, a small Michigan company selling lumber to the manufactured housing industry. Over several decades, it grew by expanding into new areas like treated lumber and by acquiring other companies, which allowed it to enter new markets. A key moment was in 1979 when it began supplying treated lumber to a new company called The Home Depot. It became a publicly traded company in 1993, which means its shares are available for anyone to buy on the stock market, helping it raise money to grow even larger. To show it had become more than just a forest products company, it changed its name to UFP Industries in 2020.
What it actually does
At its core, UFP Industries takes wood and other materials and turns them into thousands of different products people and businesses use every day. You might see their work in the pressure-treated wood used for a backyard deck, the wooden pallet that a shipment of groceries sits on, or the pre-built wall frames and roof trusses (the triangular framework for a roof) used to build a new house. The company is one of the biggest buyers of lumber in North America, which it then processes and sells in three main areas: retail stores, construction, and industrial packaging. It focuses on making value-added products, which means it modifies basic materials to make them more useful and valuable to customers.
Retail
This part of the business sells products directly to consumers through big-box stores like The Home Depot and other independent lumberyards. If you've ever bought pressure-treated lumber under the ProWood brand, or decking and railings from the Deckorators brand, you've purchased a UFP product. This segment also makes and sells things for the yard, like fencing, lattice, and pergolas, as well as decorative siding and trim for houses. The Retail segment is a significant part of the company and recently represented the largest portion of its sales.
Construction
The construction division provides essential components for building new structures, from single-family homes to large commercial buildings. Instead of just selling plain lumber, this segment designs and manufactures things like roof trusses, floor systems, and pre-built wall panels in a factory. This process, known as prefabrication, helps builders save time and money on a construction site. This group also supplies products to makers of factory-built homes and RVs, and even provides the wooden forms used to shape concrete for foundations and other structures.
Packaging
This is UFP's business-to-business segment, where it creates custom packaging solutions to help other companies ship and protect their goods. Its main products are wooden pallets, crates, and boxes designed to carry everything from agricultural products to heavy equipment. UFP Packaging is one of the largest producers of wood pallets in the United States. They work with large national and global companies to design and supply the specific packaging they need to move their products safely through the supply chain (the entire process of making and selling goods, from securing raw materials to delivering the final product).
What management is betting on now
The company's leadership is focused on selling more value-added and branded products, which typically have higher margins (the difference between what it costs to make something and its selling price). This means prioritizing items like their Deckorators composite decking or custom-engineered packaging solutions over basic, unprocessed lumber. They are also making strategic acquisitions (buying other companies) to expand their manufacturing abilities and enter new geographic areas, especially in the packaging and construction businesses. A key goal is to keep launching new products and investing in projects that will help the company grow sales and become more efficient.
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
Fetching…
Sources
Revenue
—
Net income
$75.35M
Diluted EPS
1.29
Operating cash flow
$285.98M
Free cash flow
$210.23M
Fetching…
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 $77.15
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 54.2% above today's price of $77.15, 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 $5.24B Interest coverage 2.87x -91% vs UFPI Carries about 11.7x less debt cushion than UFPI.
Total debt $377.00M Interest coverage 18.50x -45% vs UFPI Carries about 1.8x less debt cushion than UFPI.
Total debt $549.25M Interest coverage 8.39x -75% vs UFPI Carries about 4.0x 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.
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 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 22.3% 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: 2.7%).
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)
17.61x
Forward P/E
13.98x
P/B
1.40x
P/S
0.68x
EV/EBITDA
8.45x
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
1.9%
Payout ratio
32.4%
Last ex-div date
2026-09-01