Core Viewpoint - The article emphasizes the importance of value investing and highlights UFP Industries (UFPI) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][8]. Valuation Metrics - UFP Industries (UFPI) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock's P/E ratio is 15.56, significantly lower than the industry average of 23.55, suggesting it may be undervalued [4]. - UFPI's P/B ratio stands at 2.21, compared to the industry's average of 2.99, indicating solid valuation relative to its book value [5]. - The P/S ratio for UFPI is 1.05, which is much lower than the industry average of 2.3, further supporting its undervaluation [6]. - The P/CF ratio for UFPI is 11.89, well below the industry's average of 22.95, highlighting its attractive cash flow position [7]. Earnings Outlook - The combination of UFPI's strong valuation metrics and positive earnings outlook positions it as an impressive value stock at the moment [8].

Core Viewpoint - UFP Industries (UFPI) is expected to report a quarterly earnings decline of 24.1% year over year, with earnings projected at $1.23 per share and revenues at $1.44 billion, a decrease of 5.5% compared to the previous year [1]. Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating analysts' reassessment of their initial forecasts [1]. - Analysts predict 'Net Sales- Retail' to reach $480.17 million, reflecting a year-over-year decline of 5% [4]. - 'Net Sales- Construction' is estimated to be $488.31 million, indicating a decrease of 4.5% from the prior year [4]. - The combined estimate for 'Net Sales- Packaging' is projected at $374.78 million, showing a decline of 9.4% year over year [4]. Group 2: Market Performance - UFP Industries shares have returned +3% over the past month, compared to a +4.2% change in the Zacks S&P 500 composite [5]. - The company holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near future [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights UFP Industries (UFPI) as a strong candidate for value investors due to its attractive valuation metrics and strong earnings outlook [2][8]. Company Summary - UFP Industries (UFPI) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock's Forward P/E ratio is 15.78, significantly lower than the industry's average of 23.40, suggesting it may be undervalued [4]. - UFPI's P/B ratio stands at 2.24, compared to the industry's average of 2.90, further indicating its attractive valuation [5]. - The P/S ratio for UFPI is 1.06, while the industry average is 2.41, reinforcing the notion of undervaluation [6]. - The P/CF ratio for UFPI is 12.01, compared to the industry's average of 22.18, highlighting its solid cash outlook [7]. - Overall, these metrics suggest that UFPI is likely undervalued and presents an impressive value stock opportunity at the moment [8].

A month has gone by since the last earnings report for UFP Industries (UFPI) . Shares have added about 11.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is UFP Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. UFP Industries Q3 Earnings & Sales Miss Estima ...

Financial Data and Key Metrics Changes - The company reported a 10% decline in sales to $1.65 billion, driven by a 7% reduction in selling prices and a 3% decline in unit sales [28] - Adjusted EBITDA decreased by 21% to $165 million, with an adjusted EBITDA margin of 10%, remaining above historical levels [28][29] - The cash surplus grew to almost $1.2 billion, providing flexibility for financial and strategic objectives [29][43] Business Line Data and Key Metrics Changes - **Retail Segment**: Sales dropped 13% to $636 million, with a 7% decline in selling prices and a 4% decline in units [30] - **Packaging Segment**: Sales decreased 11% to $402 million, with an 8% decline in selling prices and a 5% decrease in units [34] - **Construction Segment**: Sales fell 8% to $535 million, with a 7% decline in selling prices and a 2% decline in units [35] Market Data and Key Metrics Changes - The company noted a slowing economy in many markets, likely continuing through mid-2025, with mortgage rates needing to drop below 6% to boost housing [8][10] - Demand in retail is expected to remain mid-single digits lower, while packaging demand is anticipated to be mid to high single digits lower [50] Company Strategy and Development Direction - The company is focusing on facility consolidations to leverage capacity utilization and reduce operating costs, targeting over $70 million in annualized cost reductions [10][39] - Strategic alternatives are being explored for businesses that are EBITDA positive but do not fit long-term strategy or ROI targets [10][27] - The company aims to maintain a strong balance sheet while pursuing growth through acquisitions and new product development [12][48] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with current results but remains optimistic about future prospects, emphasizing a strong balance sheet and growth opportunities [6][11] - The outlook for the remainder of the year is challenging, with expectations of continued soft demand and competitive pricing [49] Other Important Information - The company declared a cash dividend of $0.33 per share, payable on December 16, representing a 10% increase from the previous year [13][45] - New product sales for the quarter reached $118.7 million, tracking close to the 2024 target of $510 million [24] Q&A Session Summary Question: Breakdown of $70 million in cost reductions - Management indicated that the cost reductions are interconnected and do not have a specific breakdown among the three areas [53][54] Question: Competitive pressures in the packaging industry - Management noted increased competitive pressure in site-built construction and other markets as demand wanes [55] Question: M&A pipeline opportunities - Management is looking for the best values in each strategic runway without favoring one segment over another [58] Question: Capital investment program adjustments - The cadence of capital investments is expected to remain consistent with previous plans, focusing on long-term growth and margin improvement [60] Question: Strategic criteria for business units - Management is evaluating underperforming operations and those not aligned with long-term strategic goals for potential divestiture [66][68] Question: Impact of lumber pricing on earnings - Management indicated that while lumber pricing affects sales, efficiencies could be gained in a stronger lumber pricing environment [70][72]

UFP Industries (UFPI) reported $1.65 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 9.8%. EPS of $1.64 for the same period compares to $2.10 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.78 billion, representing a surprise of -7.19%. The company delivered an EPS surprise of -9.39%, with the consensus EPS estimate being $1.81. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

UFP Industries (UFPI) came out with quarterly earnings of $1.64 per share, missing the Zacks Consensus Estimate of $1.81 per share. This compares to earnings of $2.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -9.39%. A quarter ago, it was expected that this wood and materials provider for the construction industry would post earnings of $2 per share when it actually produced earnings of $2.05, delivering a surprise of 2 ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering UFP Industries (UFPI) , which belongs to the Zacks Building Products - Wood industry.This wood and materials provider for the construction industry has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 11.74%.For the last reported quarte ...

Financial Data and Key Metrics Changes - Consolidated sales decreased by 7% to $1.9 billion, primarily due to a 6% reduction in selling prices and a 1% decline in unit sales [10] - Adjusted EBITDA dropped 13% to $204 million, with an adjusted EBITDA margin of 10.7%, remaining above historical levels [10] - Cash flow from operations was $239 million, down from $321 million last year, attributed to a decline in net earnings and increased investment in net working capital [13] Business Line Data and Key Metrics Changes - Retail segment sales fell 14% to $809 million, driven by a 7% decline in selling prices and a 5% drop in unit sales [11] - Construction segment sales increased 4% to $575 million, with a 4% decline in selling prices offset by a 7% gain in units [28] - Packaging segment sales dropped 11% to $435 million, consisting of an 8% decline in selling prices and a 6% decrease in units [84] Market Data and Key Metrics Changes - Demand in the retail market is expected to decrease mid-single digits for the remainder of 2024, while construction is anticipated to increase below mid-single digits [47] - The lumber market is expected to remain below normal levels as supply exceeds demand, impacting pricing and production [25] Company Strategy and Development Direction - The company is focusing on maximizing capacity utilization through strategic facility rationalization and reducing SG&A costs [4] - Plans to allocate $300 million in packaging and $250 million in the Deckorators brand for marketing and new product launches [22] - The company is prioritizing organic growth and greenfield opportunities over acquisitions due to high valuations in the current M&A environment [5] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging second half of 2024 with continued competitive pressures and slack demand [4] - Long-term confidence remains strong, with a focus on innovation, new products, and automation to drive future growth [21] - The company expects to gain market share in each segment despite short-term challenges [47] Other Important Information - The company has a strong balance sheet with over $1 billion in surplus cash and total liquidity of $2.3 billion [80] - A quarterly dividend of $0.33 per share was approved, representing a 10% increase from the previous year [80] Q&A Session Summary Question: What are the opportunities for market share gains in other markets? - Management highlighted geographic expansion in Site Built and customer acquisition in Packaging as key areas for market share growth [32] Question: Are there expected changes in retail positioning for Deckorators? - Management indicated a significant shift in customer concentration is expected in 2025, with positive growth anticipated for Deckorators [34] Question: What is the outlook for competitive pricing pressures in retail and construction? - Management noted that pricing adjustments are ongoing, with competitive pressures being manageable at this stage [52] Question: How are new products performing in terms of margins? - New products are meeting higher margin targets, contributing positively to overall growth and EBITDA margins [67] Question: What is the timeline for the planned investments? - Investments are expected to be deployed over the next 24 months, with a focus on achieving historical returns [55][56]

Adjusted EBITDA margin fell 420 bps from the prior year to 9.9%. The company remains focused on its long-term expansion plans and improvement strategies amid a weaker environment and near-term softness in demand. These efforts are investments in automation and consolidating operations to eliminate redundancies, as well as reduce costs and enhance the profitability of its facilities. UFP Industries reported earnings per share (EPS) of $2.05, which topped the consensus mark of $2.00 by 2.5% but declined 13.1% ...