Patrick Industries Stock Fair Value Calculation – Patrick Industries Intrinsic Value Estimated at US$75.80 by 2 Stage Free Cash Flow to Equity Analysis
June 2, 2023
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Patrick Industries ($NASDAQ:PATK), Inc. is a leading manufacturer and distributor of building products and materials for the industrial, recreational vehicle, marine, and architectural fixtures markets. Recently, the company’s intrinsic value was estimated by 2 Stage Free Cash Flow to Equity Analysis, with the value determined to be US$75.80. This analysis provides key insights into the value of Patrick Industries stocks and is used by investors to determine an appropriate price to pay for the company’s stocks. The 2 Stage Free Cash Flow to Equity Model takes into consideration a variety of factors including expected future cash flow from operations, capital efficiency in terms of the return on invested capital, and the cost of equity that an investor would require for investing in the company.
This value provides investors with an excellent indication of the underlying value of the company’s stocks. This figure clearly indicates that Patrick Industries offers a highly attractive investment opportunity for potential investors.
Price History
On Tuesday, PATRICK INDUSTRIES stock opened at $71.3 and closed at $66.4, representing a drop of 6.1% from its previous closing price of 70.8. The analysis is based on a two-stage model which estimates a company’s fair value by forecasting its cash flows for multiple years and then estimating the terminal value of the company at the end of the forecast period. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Patrick Industries. More…
| Total Revenues | Net Income | Net Margin |
| 4.44k | 245.7 | 5.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Patrick Industries. More…
| Operations | Investing | Financing |
| 433.83 | -201.93 | -264.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Patrick Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.82k | 1.85k | 43.45 |
Key Ratios Snapshot
Some of the financial key ratios for Patrick Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.2% | 35.3% | 8.8% |
| FCF Margin | ROE | ROA |
| 7.9% | 25.4% | 8.7% |
Analysis – Patrick Industries Stock Fair Value Calculation
At GoodWhale, we have conducted a thorough analysis of PATRICK INDUSTRIES‘s wellbeing and our proprietary Valuation Line has calculated the fair value of the company’s share to be around $88.4. In comparison, the stock of PATRICK INDUSTRIES is currently traded at $66.4, making it undervalued by 24.9%. This presents a great opportunity for investors to enter into the market and benefit from the potential returns. More…
Peers
The Company’s segments include Recreational Vehicle Products, Manufactured Housing Products, Marine Products, and Commercial Products. Patrick Industries Inc was founded in 1959 and is headquartered in Elkhart, Indiana. The Company’s competitors include Chai Watana Tannery Group PCL, PT Goodyear Indonesia Tbk, Koda Ltd, and others.
– Chai Watana Tannery Group PCL ($SET:CWT)
Chai Watana Tannery Group PCL is a publicly traded company with a market capitalization of 1.76B as of 2022. The company’s return on equity is 11.99%. Chai Watana Tannery Group PCL is a tannery that produces and exports leather products. The company is based in Thailand and has been in business for over 50 years.
– PT Goodyear Indonesia Tbk ($IDX:GDYR)
The company’s market capitalization is 533 billion as of 2022, and its return on equity is 3.59%. The company produces and sells tires and other rubber products. It is based in Indonesia and has operations in various countries in Asia, Europe, and North America.
– Koda Ltd ($SGX:BJZ)
Koda Ltd is a market leader in providing innovative software solutions to the energy sector. The company has a strong focus on delivering customer value and has a proven track record in delivering high quality products and services. Koda Ltd has a market capitalisation of $39.05 million as of 2022 and a return on equity of 8.61%. The company is well positioned to continue its growth trajectory and deliver shareholder value in the future.
Summary
Investing analysis of Patrick Industries, Inc. indicates that the company has a fair value of US$75.80, as derived from the 2 Stage Free Cash Flow to Equity method. Despite this, the stock price decreased on the same day, indicating that the market is not necessarily in agreement with this estimate. Investors should be aware of the potential discrepancy between intrinsic value and stock price when considering investing in Patrick Industries.
