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UFP Industries (UFPI) Gains From Acquisitions & Innovations
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UFP Industries (UFPI - Free Report) is benefiting from operational efficiencies and strategic acquisitions. Also, new product innovation and strong liquidity bode well.
Shares of UFPI have increased 2.4% in the past year against the Zacks Building Products - Wood industry’s decline of 22.4%.
Earnings estimates for 2023 have moved north to $8.29 per share from $7.60 per share in the past 30 days. This depicts analysts' optimism over the company’s growth prospects.
Image Source: Zacks Investment Research
What’s Favoring UFPI?
Acquisitions have been UFP Industries' preferred mode of solidifying its product portfolio and leveraging new business opportunities. UFPI acquired four companies in 2022 and nine in 2021. Acquisitions contributed 1% to unit sales growth in first-quarter 2023. Also, it projects acquisitions to contribute half of its total annual unit sales growth for 2023.
The company has been investing in product and service enhancements and innovations to create value for customers. Also, its efforts to introduce new products aided the company. In 2023, new product sales in the first quarter were $166.6 million, up 10.6% from the year-ago quarter’s levels. New product sales, as a percent of total sales, rose to 9.1% from 7.4% in the year-ago quarter. The company anticipates new product sales to be $795 million in 2023. The Innovate Fund possesses a strong pipeline of potential opportunities. Notably, the company defines new products as those that will generate sales of at least a $1 million per year within four years of launch and are still growing and gaining market penetration.
UFP Industries has been maintaining a strong liquidity position to navigate through the current environment. The company had $1.7 billion of liquidity as of Apr 1, 2023, including $535 million of remaining availability under the revolving credit facility and a shelf agreement with certain lenders. Cash and cash equivalents were $423.3 million as of April 2023-end compared with $73.8 million a year ago and $559.4 million at fiscal 2022 end. The current liquidity level is sufficient to meet the short-term obligation of $3.02 million. The long-term debt was $275 million as of Apr 1, 2023, down from $275.2 million at Dec 31, 2022 and $379 million a year ago.
Zacks Rank & Other Key Picks
UFP Industries currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks from the Zacks Construction sector are:
The Zacks Consensus Estimate for DY’s 2023 sales and EPS indicates a fall of 7.0% and 30.0%, respectively, from the year-ago period’s levels.
Martin Marietta Materials, Inc. (MLM - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 31.1%, on average. Shares of MLM have increased 14.2% in the past year.
The Zacks Consensus Estimate for MLM’s 2023 sales and EPS indicates a rise of 19.1% and 32.1%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 14.2% in the past year.
The Zacks Consensus Estimate for EXP’s 2023 sales and EPS indicates a rise of 2.0% and 6.0%, respectively, from the year-ago period’s levels.
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UFP Industries (UFPI) Gains From Acquisitions & Innovations
UFP Industries (UFPI - Free Report) is benefiting from operational efficiencies and strategic acquisitions. Also, new product innovation and strong liquidity bode well.
Shares of UFPI have increased 2.4% in the past year against the Zacks Building Products - Wood industry’s decline of 22.4%.
Earnings estimates for 2023 have moved north to $8.29 per share from $7.60 per share in the past 30 days. This depicts analysts' optimism over the company’s growth prospects.
Image Source: Zacks Investment Research
What’s Favoring UFPI?
Acquisitions have been UFP Industries' preferred mode of solidifying its product portfolio and leveraging new business opportunities. UFPI acquired four companies in 2022 and nine in 2021. Acquisitions contributed 1% to unit sales growth in first-quarter 2023. Also, it projects acquisitions to contribute half of its total annual unit sales growth for 2023.
The company has been investing in product and service enhancements and innovations to create value for customers. Also, its efforts to introduce new products aided the company. In 2023, new product sales in the first quarter were $166.6 million, up 10.6% from the year-ago quarter’s levels. New product sales, as a percent of total sales, rose to 9.1% from 7.4% in the year-ago quarter. The company anticipates new product sales to be $795 million in 2023. The Innovate Fund possesses a strong pipeline of potential opportunities. Notably, the company defines new products as those that will generate sales of at least a $1 million per year within four years of launch and are still growing and gaining market penetration.
UFP Industries has been maintaining a strong liquidity position to navigate through the current environment. The company had $1.7 billion of liquidity as of Apr 1, 2023, including $535 million of remaining availability under the revolving credit facility and a shelf agreement with certain lenders. Cash and cash equivalents were $423.3 million as of April 2023-end compared with $73.8 million a year ago and $559.4 million at fiscal 2022 end. The current liquidity level is sufficient to meet the short-term obligation of $3.02 million. The long-term debt was $275 million as of Apr 1, 2023, down from $275.2 million at Dec 31, 2022 and $379 million a year ago.
Zacks Rank & Other Key Picks
UFP Industries currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks from the Zacks Construction sector are:
Dycom Industries, Inc. (DY - Free Report) carries a Zacks Rank #1 (Strong Buy). DY has a trailing four-quarter earnings surprise of 153.7%, on average. Shares of DY have gained 10.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DY’s 2023 sales and EPS indicates a fall of 7.0% and 30.0%, respectively, from the year-ago period’s levels.
Martin Marietta Materials, Inc. (MLM - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 31.1%, on average. Shares of MLM have increased 14.2% in the past year.
The Zacks Consensus Estimate for MLM’s 2023 sales and EPS indicates a rise of 19.1% and 32.1%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 14.2% in the past year.
The Zacks Consensus Estimate for EXP’s 2023 sales and EPS indicates a rise of 2.0% and 6.0%, respectively, from the year-ago period’s levels.