UFP Industries Current Valuation vs. Return On Equity
| UF3 Stock | EUR 108.20 2.15 1.95% |
For UFP Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of UFP Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well UFP Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between UFP Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of UFP Industries over time as well as its relative position and ranking within its peers.
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UFP Industries Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining UFP Industries's current stock value. Our valuation model uses many indicators to compare UFP Industries value to that of its competitors to determine the firm's financial worth. UFP Industries is rated below average in current valuation category among its peers. It is rated third in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for UFP Industries is about 15,456,782,919 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the UFP Industries' earnings, one of the primary drivers of an investment's value.UFP Current Valuation vs. Competition
UFP Industries is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Lumber & Wood Production industry is at this time estimated at about 46.93 Billion. UFP Industries retains roughly 4.72 Billion in current valuation claiming about 10% of all equities under Lumber & Wood Production industry.
UFP Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 4.72 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.31 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
UFP Return On Equity Comparison
UFP Industries is rated second in return on equity category among its peers.
UFP Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in UFP Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, UFP Industries will eventually generate negative long term returns. The profitability progress is the general direction of UFP Industries' change in net profit over the period of time. It can combine multiple indicators of UFP Industries, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Universal Forest Products, Inc., through its subsidiaries, designs, manufactures, and markets wood and wood-alternative products in North America, Europe, Asia, and Australia. Universal Forest Products, Inc. was founded in 1955 and is headquartered in Grand Rapids, Michigan. Universal Forest operates under Lumber Wood Production classification in Germany and is traded on Frankfurt Stock Exchange. It employs 10000 people.
UFP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on UFP Industries. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of UFP Industries position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the UFP Industries' important profitability drivers and their relationship over time.
Use UFP Industries in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if UFP Industries position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in UFP Industries will appreciate offsetting losses from the drop in the long position's value.UFP Industries Pair Trading
UFP Industries Pair Trading Analysis
The ability to find closely correlated positions to UFP Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace UFP Industries when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back UFP Industries - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling UFP Industries to buy it.
The correlation of UFP Industries is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as UFP Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if UFP Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for UFP Industries can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your UFP Industries position
In addition to having UFP Industries in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in UFP Stock
When determining whether UFP Industries offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of UFP Industries' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ufp Industries Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ufp Industries Stock:Check out World Market Map. For more detail on how to invest in UFP Stock please use our How to Invest in UFP Industries guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project UFP Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of UFP Industries at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include UFP Industries' income statement, its balance sheet, and the statement of cash flows.