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If You Invested $1000 in UFP Industries 10 Years Ago, This Is How Much You'd Have Now

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in UFP Industries (UFPI - Free Report) ten years ago? It may not have been easy to hold on to UFPI for all that time, but if you did, how much would your investment be worth today?

UFP Industries' Business In-Depth

With that in mind, let's take a look at UFP Industries' main business drivers.

Headquartered in Grand Rapids, MI, UFP Industries, Inc. is a holding company with its subsidiaries throughout North America, Europe, Asia, and Australia. The company supplies wood, wood composite and other products in retail, industrial, and construction market.

As of December 2019, the company currently has approximately 204 facilities and parcels of land located throughout the United States, Canada, Mexico, Europe, Asia, and Australia. Of these facilities, approximately 8 facilities are closed and are currently listed for sale or are being leased.

The company classifies its top-line results based on its end markets. A brief snapshot of the end market sales has been provided below:

UFP Retail (accounting for 36.2% of 2020 net sales) includes Do-It-Yourself retailers, and distributors, pro-dealers and other retail customers.
UFP Industrial (22.2%) consists of packaging, crating and other products for manufacturers.

UFP Construction (36.5%) comprises Residential Construction, Commercial Construction and Concrete Forming and Manufactured Housing sales.

As of 2020, proceeds from all other segment accounted for 5.1% of net sales.

Residential Construction includes builders of single and multifamily homes. Commercial Construction and Concrete Forming includes non-residential construction and concrete forming. Manufactured Housing includes manufactured housing and recreational vehicles business.

On Jan 28, 2021, the company’s board approved an increase in quarterly dividend by 20% to 15 cents a share, reaching the annual total for 2020 to 60 cents per share.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For UFP Industries, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in March 2011 would be worth $5,850.78, or a gain of 485.08%, as of March 19, 2021, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 206.09% and gold's return of 17.48% over the same time frame.

Going forward, analysts are expecting more upside for UFPI.

UFP Industries' fourth-quarter 2020 earnings and revenues beat analysts’ expectations by 25.9% and 16.4% and improved 67.2% and 39.6% year over year, respectively. SG&A expenses, as a percentage of sales, improved 430 bps and EBITDA grew 66.8% year over year. In 2020, the company’s net revenues, adjusted earnings grew 66.7% and 37.5%, respectively, year over year. The company has been expanding its product portfolio and leveraging new business opportunities with the recent buyouts. Solid liquidity position and shareholders' rewards are added positives. Although the increase in home improvement activity resulting from stay-at-home orders benefited its Retail segment, COVID-related woes and a volatile lumber market are still concerns.

The stock is up 20.06% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021. The consensus estimate has moved up as well.


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