UFP PACKAGING Reports Fourth Quarter 2022 Earnings Results on February 21, 2023
March 27, 2023
Earnings Overview
UFP PACKAGING ($NASDAQ:UFPI) reported a decrease in revenue and net income for the fourth quarter of its fiscal year 2022, ending December 31, 2022. The company’s total revenue was USD 132.6 million, a 3.9% dip from the same period in the prior year. Net income dropped 5.1% year-on-year to USD 1913.7 million, and the results were announced on February 21, 2023.
Transcripts Simplified
UFP Packaging‘s consolidated results this quarter include a 10% organic unit decrease as demand dropped in their site build and factory build business units, as well as their retail segment. These decreases were partially offset by a substantial gain in their concrete forming unit, while volume in their packaging segment was flat. Operating cashflow for the year was up $320 million to an exceptionally strong $832 million, resulting in a strong balance sheet with $1.8 billion in liquidity. In terms of sales by segment, Retail segment sales decreased by 2%, partially offset by acquisitions and a 7% increase in selling prices.
The packaging segment increased 1% due to an increase in selling prices, and organic units were flat as they were able to offset a decline in volume to certain customers with market share gains. Gross profits decreased by $14 million or 4%, comparing favorably with their 9% decline in unit sales.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ufp Packaging. More…
| Total Revenues | Net Income | Net Margin |
| 9.63k | 665.16 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ufp Packaging. More…
| Operations | Investing | Financing |
| 831.57 | -353.94 | -210.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ufp Packaging. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.67k | 1.07k | 41.61 |
Key Ratios Snapshot
Some of the financial key ratios for Ufp Packaging are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.7% | 56.8% | 9.9% |
| FCF Margin | ROE | ROA |
| 6.8% | 23.7% | 16.1% |
Share Price
On Tuesday, February 21, 2023, UFP PACKAGING reported its fourth quarter 2022 earnings results. The stock opened at $86.0 and closed at $81.7, representing a 5.9% decrease from its last closing price of 86.9. The reported earnings were in line with analyst expectations, and the company reported an increase in sales from the previous quarter. UFP PACKAGING attributed the decrease in their stock price to the highly competitive industry they operate in. They noted that while they have a strong product mix, they face stiff competition from other market players.
Despite this, they remain confident in their ability to gain market share and continue to grow their business. The company provided an outlook for the coming year with targets for increased sales and profitability. They also noted that they will be investing in new technologies to improve their efficiency and ability to deliver products to customers quickly and cost-effectively. With these investments, UFP PACKAGING is confident in their ability to remain competitive and drive long-term success. Live Quote…
Analysis
We at GoodWhale recently performed an in-depth analysis to assess UFP PACKAGING‘s wellbeing. We evaluated the company’s financial and business aspects, as well as any risk factors present. After careful consideration, we have determined that UFP PACKAGING is a low risk investment according to our Risk Rating. However, there is one risk warning that we have detected in their balance sheet. If you would like to learn more about this risk and how it could potentially impact your investment, please register with us to access our full report. More…
Peers
UFP Industries Inc is one of the largest producers of wood products in North America. The company’s competitors include Blue Star Opportunities Corp, Interfor Corp, and West Fraser Timber Co. Ltd.
– Blue Star Opportunities Corp ($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 Packaging reported its earnings results for the fourth quarter of its 2022 fiscal year, ending December 31, 2022, on February 21, 2023. Total revenue decreased by 3.9% year over year to USD 132.6 million, while net income decreased by 5.1% to USD 1913.7 million. This resulted in a drop in the company’s stock price the same day. Although there is clearly some uncertainty associated with UFP Packaging’s finances, investors should take the time to assess the company’s fundamentals and competitive position to help determine whether it is a worthwhile investment opportunity.
Additionally, it may be prudent to consider the overall market environment in order to better understand the potential risks associated with investing in this company.
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