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Patrick Industries (PATK)
NASDAQ:PATK
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Patrick Industries
(NASDAQ:PATK)
74Outperform
Positive Factors
Financial Performance
PATK reported results beating top-line expectations, with AEBITDA and adjusted EPS in line with consensus.
Strategic Initiatives
The company's outlook and ongoing execution of strategic initiatives have led to a raised price target and a maintained Buy rating.
Negative Factors
Retail and Shipment Trends
Near-term retail and shipment trends are expected to remain challenging despite long-term opportunities.
Patrick Industries (PATK) vs. S&P 500 (SPY)
Market Cap
$2.95B
Dividend Yield1.74%
Average Volume (3M)395.14K
Price to Earnings (P/E)21.5
Beta (1Y)1.61
Revenue Growth7.14%
EPS Growth-4.01%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength49
IndustryHome and Homeware
Share Statistics
EPS (TTM)4.13
Shares Outstanding33,644,703
10 Day Avg. Volume433,550
30 Day Avg. Volume395,141
Financial Highlights & Ratios
PEG Ratio15.71
Price to Book (P/B)N/A
Price to Sales (P/S)0.79
Price to Cash Flow (P/CF)7.20
P/FCF Ratio9.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$106.71Price Target Upside25.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Patrick Industries Business Overview & Revenue Model
Company DescriptionPatrick Industries, Inc. is a leading manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing, marine, and industrial markets. The company primarily operates in the United States and is known for its extensive range of products, including decorative vinyl and paper laminate panels, cabinet doors, countertops, fiberglass bath fixtures, furniture, and various other products that are used in the construction and refurbishment of RVs, manufactured homes, and boats.
How the Company Makes MoneyPatrick Industries generates revenue through the manufacturing and distribution of a diverse array of building and component products, primarily serving the recreational vehicle (RV), manufactured housing, and marine markets. The company sells its products directly to original equipment manufacturers (OEMs) and dealers in these sectors, where its products are integral to the construction and renovation of RVs, manufactured homes, and boats. Additionally, Patrick Industries benefits from strategic acquisitions to expand its product offerings and market reach, which enhances its revenue base. The company's growth is also supported by its ability to adapt to market demand, manage a broad portfolio of products, and maintain strong relationships with key industry players.
Patrick Industries Financial Statement Overview
Summary
Patrick Industries exhibits a stable financial profile with strong cash flow and profitability metrics. While the balance sheet shows moderate leverage, the company's solid equity base and efficient operations provide a cushion against potential financial fluctuations.Income Statement
Patrick Industries shows a stable financial performance with consistent revenue streams, although revenue has experienced some fluctuations over the years. The gross and net profit margins indicate efficient cost control and profitability. The EBIT and EBITDA margins are healthy, demonstrating strong operational efficiency.75
Positive
Balance Sheet
The company's balance sheet indicates a moderate level of leverage with a manageable debt-to-equity ratio. The equity ratio is healthy, showcasing a solid financial structure. However, the return on equity has shown some decline, signaling potential challenges in maximizing shareholder returns.70
Positive
Cash Flow
Patrick Industries demonstrates strong cash flow management with consistent free cash flow generation. Operating cash flow relative to net income is robust, underscoring effective cash conversion. The free cash flow growth rate is positive, highlighting the company’s ability to sustain operations and finance growth.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.72B | 3.47B | 4.88B | 4.08B | 2.49B | Gross Profit |
| 835.89M | 782.23M | 1.06B | 801.19M | 459.02M | EBIT |
| 258.04M | 260.20M | 496.17M | 351.71M | 173.37M | EBITDA |
| 258.04M | 404.74M | 626.93M | 456.52M | 246.64M | Net Income Common Stockholders |
| 138.40M | 142.90M | 328.20M | 224.91M | 97.06M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 33.56M | 11.41M | 22.85M | 122.85M | 44.77M | Total Assets |
| 3.02B | 2.56B | 2.78B | 2.65B | 1.75B | Total Debt |
| 210.97M | 1.21B | 1.45B | 1.45B | 937.48M | Net Debt |
| 177.41M | 1.20B | 1.43B | 1.32B | 892.72M | Total Liabilities |
| 1.89B | 1.52B | 1.83B | 1.88B | 1.19B | Stockholders Equity |
| 1.13B | 1.05B | 955.17M | 767.56M | 559.44M |
| Cash Flow | Free Cash Flow | |||
| 251.16M | 349.69M | 331.86M | 187.33M | 128.05M | Operating Cash Flow |
| 326.84M | 408.67M | 411.74M | 252.13M | 160.15M | Investing Cash Flow |
| -512.85M | -86.55M | -321.47M | -574.73M | -337.88M | Financing Cash Flow |
| 208.16M | -333.56M | -190.27M | 400.69M | 83.11M |
Patrick Industries Technical Analysis
Negative
85.19
Price Trends
90.36
Negative
89.12
Negative
85.14
Positive
Market Momentum
-1.49
Positive
34.76
Neutral
30.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATK, the sentiment is Negative. The current price of 85.19 is below the 20-day moving average (MA) of 90.84, below the 50-day MA of 90.36, and above the 200-day MA of 85.14, indicating a neutral trend. The MACD of -1.49 indicates Positive momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 30.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PATK.
Patrick Industries Risk Analysis
Patrick Industries disclosed 35 risk factors in its most recent earnings report. Patrick Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Patrick Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.46B | 33.64 | 11.18% | ― | 22.52% | -18.73% | |
74 Outperform | $5.70B | 11.99 | 17.23% | 0.44% | 11.53% | -13.75% | |
74 Outperform | $2.95B | 21.51 | 12.73% | 1.74% | 7.14% | -4.01% | |
72 Outperform | $2.45B | 17.56 | 10.42% | 4.37% | -1.15% | 121.43% | |
62 Neutral | $4.37B | 22.74 | 5.13% | 2.39% | -8.45% | -25.41% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
44 Neutral | $1.63B | ― | -17.13% | 3.13% | -2.03% | -202.23% |
* Consumer Cyclical Sector Average
Performance Comparison
PATK
Patrick Industries
85.19
13.69
19.15%
CWH
Camping World Holdings
16.56
-10.06
-37.79%
LCII
LCI Industries
91.47
-16.42
-15.22%
GPI
Group 1 Automotive
433.23
169.58
64.32%
SKY
Champion Homes
94.22
11.18
13.46%
THO
Thor Industries
78.77
-21.80
-21.68%
Patrick Industries Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -12.43% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Patrick Industries' strategic growth through acquisitions and a solid performance in the housing market. However, there were significant challenges in the Marine market and reduced profitability. Despite these challenges, the company remains optimistic about future growth opportunities.Highlights
Sales Growth
Fourth quarter sales growth of 8%, equating to sales of $846 million. Full year 2024 sales grew 7% to $3.7 billion.
Strategic Acquisitions
Expanded presence in the Powersport space through the acquisition of Sportech and enhanced aftermarket capabilities with the acquisition of RecPro.
Debt Refinancing
Completed a debt refinancing that improved liquidity, reduced the cost of fixed-rate debt, and extended maturity profile.
Housing Market Performance
Housing revenues increased 12% to $288 million in Q4, driven by demand for manufactured housing. MH content per unit increased 4% to $6,604 for the full year.
Cash Flow and Liquidity
Cash provided by operations was approximately $327 million for 2024, with free cash flow of $251 million. Total net liquidity at the end of 2024 was approximately $804 million.
Lowlights
Marine Market Decline
Marine fourth quarter revenues were $122 million, down from $147 million in the fourth quarter of 2023. Marine wholesale shipments declined an estimated 25% for the full year.
RV and Marine Inventory Reductions
RV and Marine dealer inventories declined approximately 13% and 22%, respectively, due to disciplined inventory management in response to interest rate and demand headwinds.
Reduced Operating Margin
Fourth quarter gross margin was 22.1%, down from 22.9% in the prior year, partially due to revenue mix and OEM focus on more affordable units.
Decline in Net Income
Fourth quarter net income was $15 million or $0.42 per share, compared to $0.94 per share in 2023. Adjusted net income in the fourth quarter was $18 million or $0.52 per share.
Company Guidance
During the fourth quarter of 2024, Patrick Industries provided guidance indicating strong financial performance and strategic growth initiatives. The company reported an 8% increase in sales, reaching $846 million, and a full-year sales growth of 7%, totaling $3.7 billion. Adjusted net income per diluted share was $0.52 for the quarter and $4.34 for the full year. The company highlighted its strategic acquisitions, including Sportech and RecPro, which expanded its presence in the Powersport and aftermarket sectors, respectively. Patrick Industries also emphasized its focus on organic growth, targeting a 2% to 3% annual increase through new products and innovations. The guidance projected that RV and Marine markets are near cyclical lows, with expected long-term growth, while the housing market showed solid demand for affordable housing. The company ended the year with a total net liquidity of approximately $804 million, providing substantial flexibility for executing strategic opportunities in 2025.Patrick Industries Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Patrick Industries Approves Executive Stock Options Plan
Neutral
Mar 3, 2025
On February 25, 2025, Patrick Industries approved stock options and Stock Appreciation Rights for its Named Executive Officers under the 2009 Omnibus Incentive Plan. This strategic move is likely to impact the company’s executive compensation structure, aligning leadership incentives with long-term company performance and potentially influencing stakeholder confidence.
M&A TransactionsStock SplitDividendsBusiness Operations and StrategyFinancial Disclosures
Patrick Industries Reports Q4 Sales Growth Amid Strategic Moves
Positive
Feb 6, 2025
Patrick Industries reported an 8% increase in fourth-quarter net sales for 2024, driven by acquisitions and market share gains in the Housing and RV sectors, despite challenges in the Marine market. The company declared a quarterly cash dividend and executed strategic financial moves, including a stock split and refinancing of debt, enhancing its financial flexibility. Significant acquisitions like Sportech and RecPro fortified its presence in the Powersports and Outdoor Enthusiast aftermarket spaces, respectively, positioning Patrick for sustained growth and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.