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Is UFP Industries (UFPI) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is UFP Industries (UFPI - Free Report) . UFPI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.72, which compares to its industry's average of 19.27. UFPI's Forward P/E has been as high as 16.50 and as low as 10.68, with a median of 14.67, all within the past year.

Another notable valuation metric for UFPI is its P/B ratio of 2.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.53. Within the past 52 weeks, UFPI's P/B has been as high as 2.67 and as low as 1.94, with a median of 2.29.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UFPI has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.55.

Finally, investors will want to recognize that UFPI has a P/CF ratio of 10.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.69. Over the past 52 weeks, UFPI's P/CF has been as high as 12.41 and as low as 8.20, with a median of 10.86.

These figures are just a handful of the metrics value investors tend to look at, but they help show that UFP Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UFPI feels like a great value stock at the moment.


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