Business Description

UFP Industries Inc. produces and distributes wood products and wood alternatives. These are the business units. The company was established in 1955. It is headquartered in Grand Rapids (MI). The company operates in three segments: Industrial, Retail, and Construction.  The Industrial segment manufactures pallets, wooden boxes, specialty boxes, as well as other containers that are used for shipping, packaging, and material handling.

The Retail segment includes national home centers, regional lumberyards that are retail-oriented, and contractor-oriented lumberyards. The Construction segment is involved in the construction of factory-built housing, residential construction concrete forming, on-site, as well as commercial construction.

Key Financials

Revenue (US$ Mn)

• UFP Industries Inc.’s annual revenue for 2021 was US$ 8,636 Mn, a 67.56% increase from the 2020
• From 2019’s annual revenues, UFP Industries Inc. registered a 16.71% increase in 2020, amounting to US$ 5,154 Mn
• Total revenue of US$ 4,416 Mn was generated in 2019 by UFP Industries Inc.

Operating Income (US$ Mn)

• The operating income generated by UFP Industries Inc. in 2021 was US$ 738 Mn
• At a 41.69% increase, UFP Industries Inc.’s operating income of US$ 341 Mn was indexed in 2020
• UFP Industries Inc. generated an operating income of US$ 241 Mn in 2019

Net Income (US$ Mn)

• UFP Industries Inc.’s net income for 2021 was US$ 518 Mn, a 104.1% increase from 2020
• From 2019’s net incomes, UFP Industries Inc. registered a 39.14% increase in 2020, amounting to US$ 254 Mn
• A net income of US$ 182 Mn was generated in 2019 by UFP Industries Inc.

Operating Margin %

• The operating margin generated by UFP Industries Inc. in 2021 was 9%
• At a 22.22% increase, UFP Industries Inc.’s operating margin of 7% was indexed in 2020
• UFP Industries Inc. generated an operating margin of 5% in 2019

Gross Margin %

• The gross margin generated by UFP Industries Inc. in 2021 was 16%
• At a 0% decrease, UFP Industries Inc.’s gross margin of 16% was indexed in 2020
• UFP Industries Inc. generated a gross margin of 16% in 2019

SWOT Analysis

Strengths

The company’s high liquidity and adequate cash reserves make it an attractive choice when funding potential mergers and acquisitions. UFP Industries’ current ratio stood at 3.3 in FY2020. This is significantly higher than the 3.1 in FY2019. The company’s current ratio is higher if it has high liquidity. The company’s total current assets stood at US$1,538million, an increase of 40% over the previous year. Cash and equivalents were worth US$436.5million. The company’s current portfolio of capital leases or long-term debt also declined from US$2.8million in FY2019 to US$0.1million in FY2020.

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