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If You Invested $1000 in UFP Industries a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and 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 Dec 31, 2020, the company currently has approximately 156 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

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in UFP Industries ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in May 2011 would be worth $8,258.21, or a 725.82% gain, as of May 5, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 209.11% and gold's return of 16.11% over the same time frame.

Analysts are anticipating more upside for UFPI.

UFP Industries' first-quarter 2021 earnings and revenues beat analysts’ expectations by 85.6% and 22.8% and improved 157% and 77% year over year, respectively. SG&A expenses, as a percentage of sales, improved 240 basis points (bps) and adjusted EBITDA grew a notable 111% year over year. The company has been experiencing strong organic growth in retail and industrial segments along with site-built and factory-built housing business units. It has been expanding the product portfolio and leveraging new business opportunities with the recent buyouts. Solid liquidity position and shareholders' rewards are added positives. However, its gross margin fell 50 bps from the prior year due to increase in resin price. COVID-related woes and a volatile lumber market still remain concerns.

The stock has jumped 9.55% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2021; the consensus estimate has moved up as well.

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