UFP INDUSTRIES Reports 29.5% Decrease in Revenue for FY2023 Q2
August 23, 2023
🌥️Earnings Overview
UFP INDUSTRIES ($NASDAQ:UFPI) reported their financial results for FY2023 Q2 (ending June 30 2023) on August 2 2023; total revenue for the quarter was USD 2043.9 million, representing a decrease of 29.5% compared to the same period in the prior year. Net income for the quarter totaled USD 150.8 million, a decrease of 25.8% year over year.
Analysis
GoodWhale has conducted an analysis of UFP INDUSTRIES‘s fundamentals and based on Star Chart, it is clear that the company is strong in asset, dividend, growth, and profitability. UFP INDUSTRIES has a high health score of 10/10 with regard to its cashflows and debt, which means it is capable to pay off debt and fund future operations. Furthermore, UFP INDUSTRIES is classified as ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. This could be attractive for investors who are looking for companies that are stable, offer strong fundamentals and have some potential for moderate growth. Value investors may find the company attractive as it appears to have a long-term value proposition due to its solid financial health and strong fundamentals. Additionally, those investors looking for income may like the idea of investing in a company such as UFP INDUSTRIES which pays out dividends. Finally, growth investors may find the moderate growth potential attractive and worth exploring further. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ufp Industries. More…
| Total Revenues | Net Income | Net Margin |
| 8.1k | 564.22 | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ufp Industries. More…
| Operations | Investing | Financing |
| 1.06k | -320.48 | -182.24 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ufp Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.84k | 1k | 45.93 |
Key Ratios Snapshot
Some of the financial key ratios for Ufp Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.2% | 40.3% | 9.4% |
| FCF Margin | ROE | ROA |
| 10.8% | 17.1% | 12.4% |
Peers
UFP Industries Inc is one of the largest producers of wood products in North America. The company’s competitors include Blue Star Opportunities Corp, Interfor Corp, and West Fraser Timber Co. Ltd.
– Blue Star Opportunities Corp ($OTCPK:BSTO)
Interfor Corp is a Canadian forestry company with operations in British Columbia, Washington state, and Oregon. The company has a market cap of 1.23 billion Canadian dollars as of 2022. The company’s return on equity is 34.77%. Interfor Corp is engaged in the business of growing and harvesting trees, and manufacturing and selling lumber and wood products. The company’s products are used in the construction, industrial, and retail markets.
– Interfor Corp ($TSX:IFP)
As of 2022, West Fraser Timber Co. Ltd. had a market capitalization of $8.54 billion. The company had a return on equity of 26.74%. West Fraser Timber Co. Ltd. is a forest products company that produces lumber, wood chips, and other forest products. The company was founded in 1955 and is headquartered in Vancouver, Canada.
Summary
UFP Industries is a company that investors should watch in the coming months. Its Q2 FY2023 earnings results showed a steep decrease in total revenue of 29.5% and a 25.8% drop in net income compared to the same quarter last year. However, despite the losses incurred, the company remains well-positioned to make a comeback given its low debt levels, steady cash flows, and substantial investments in research & development. There is potential for the company’s revenue and profits to rebound, making it a worthwhile investment option for those with an appetite for risk.
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