UFPT  Ufp Technologies Inc.

Exchange

NASDAQ

Sector

Capital Goods

Industry

Containers/Packaging

Market Cap.

171.67M

Vuru Grade

40.10/100

Current Price

$23.85
-0.40 (-1.65%)

Growth Price

$11.51
Overvalued by 51.75%

Stability Price

$3.66
Overvalued by 84.67%

Company Metrics

  • P/E 21.29
  • P/S 1.22
  • P/B 1.57
  • EPS 1.12
  • Cash ROIC 7.77%
  • Cash Ratio 2.71
  • Dividend 0 / 0%
  • Avg. Vol. 22,363.00
  • Shares 7.20M
  • Market Cap. 171.67M

Company Description

UFP Technologies, Inc., through its subsidiaries, engages in the design and manufacture of engineered packaging solutions for medical and scientific, automotive, aerospace and defense, computer and electronics, industrial, and consumer markets. The company offers packaging products primarily using polyethylene, polyurethane, cross-linked polyethylene foams, and rigid plastics. Its packaging produc... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

UFP Technologies Inc. (UFPT) Moves Lower on Volume Spike for February 22
Equities.com - Feb 22, 2017
UFP Technologies Inc. (UFPT) traded on unusually high volume on Feb. 22, as the stock lost 1.42% to close at $24.35. On the day, UFP Technologies Inc. saw 34,696 shares trade hands on 451 trades. Considering that the stock averages only a daily volume ...
UFP Technologies, Inc. (UFPT) Given Consensus Rating of “Strong Buy” by Brokerages - Community Financial News
UFP Technologies, Inc. (UFPT) Reviewed By Analysts - The De Soto Edge
UFP Technologies Inc. (UFPT) Moves Higher on Volume Spike for January 16
Equities.com - Jan 16, 2017
UFP Technologies Inc. (UFPT) traded on unusually high volume on Jan. 16, as the stock gained 2.49% to close at $24.65. On the day, UFP Technologies Inc. saw 91,670 shares trade hands on 498 trades. Considering that the stock averages only a daily ...
Analysts Expect UFP Technologies, Inc. (UFPT) to Announce $0.23 Earnings Per Share - The Cerbat Gem
UFP Technologies, Inc. (UFPT) Scheduled to Post Quarterly Earnings on Monday
Community Financial News - 15 hours ago
“UFP Technologies, Inc. (UFPT) Scheduled to Post Quarterly Earnings on Monday” was reported by Community Financial News and is the property of of Community Financial News.
Form 4/A UFP TECHNOLOGIES INC For: Feb 21 Filed by: Smith W David
StreetInsider.com - Feb 20, 2014
... SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549. STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of ...
The UFP Technologies, Inc. (UFPT) Raised to Hold at Zacks Investment Research
DailyQuint - Jan 30, 2017
Zacks Investment Research upgraded shares of UFP Technologies, Inc. (NASDAQ:UFPT) from a strong sell rating to a hold rating in a research note released on Wednesday.
UFP Technologies, Inc. (UFPT) Stock Rating Upgraded by Zacks Investment Research - Marea Informative
UFP Technologies Appoints Dan Croteau to its Board
Business Wire (press release) - Dec 16, 2015
GEORGETOWN, Mass.--(BUSINESS WIRE)--UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, announced today it has expanded its Board of Directors to eight members with the appointment of Dan Croteau.
UFP Technologies, Inc: Medical device pouch
Healthcare Packaging - Mar 6, 2013
UFP Technologies, a producer of custom-engineered components, products, and specialty packaging, introduced its latest innovation for the medical device industry, FlexShield™.
UFP Technologies Inc (NASDAQ:UFPT) Stock Technicals Hit Strength
CML News - Jul 26, 2016
This is a technical analysis stock rating for UFP Technologies Inc (NASDAQ:UFPT) . The company has a four bull technical rating which indicates some strength.
UFP Technologies, Inc. (UFPT) Upgraded to Hold by Zacks Investment Research
Sports Perspectives - Jan 26, 2017
Zacks Investment Research upgraded shares of UFP Technologies, Inc. (NASDAQ:UFPT) from a strong sell rating to a hold rating in a research report sent to investors on Wednesday morning.
Broker Outlook For The Week Ahead UFP Technologies, Inc. (UFPT) - Fiscal Standard
Punch & Associates Investment Management Inc. Continues to Hold Position in ...
The Cerbat Gem - Jan 23, 2017
UFP Technologies logo Punch & Associates Investment Management Inc. held its stake in UFP Technologies Inc. (NASDAQ:UFPT) during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for UFPT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate UFPT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$23.85 Current Price

$11.51 Growth Price (DCF)

Overvalued by 51.75%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


UFPT's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$3.66 Stability Price (EPV)

Overvalued by 84.67%


Discount Rate: 15.0%

$6.56 NCA Price

Overvalued by 72.49%

$25.33 Book Price

Undervalued by 6.20%


Poor Cash Return on Invested Capital over the past 5 years

UFPT has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

UFPT has only created $7.77 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 7.97M 4.17M 10.28M -2.31M -3.22M
divided by
Invested Capital 40.41M 51.91M 55.40M 68.03M 79.16M
Cash ROIC 19.74% 8.03% 18.55% -3.40% -4.07%

Shrinking Return on Equity over the past 5 years

UFPT has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

UFPT has generated $12.04 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 10.35M 10.90M 11.28M 7.56M 7.59M
divided by
Stockholders' Equity 61.31M 73.26M 85.59M 94.99M 103.57M
Return on Equity 16.88% 14.87% 13.17% 7.96% 7.33%

Good Business Performance over the past 10 years

It's likely UFPT has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is UFPT has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

UFPT has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 10.58M 8.05M 3.92M 8.83M 9.28M 7.97M 4.17M 10.28M -2.31M -3.22M

Very Strong Balance Sheet

UFPT has more Cash than its Total Liabilities, resulting in $1.87 Net Cash per share. In other words, if you buy UFPT today, the price you're paying for shares is actually $21.98 because $1.87 of Cash is included in the current share price. This much Cash is very healthy. It can help UFPT sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 1.02M 9.06M 6.73M 15.00M 24.43M 29.85M 33.48M 37.30M 34.05M 29.80M
Current Assets 20.37M 28.58M 29.64M 38.75M 50.77M 58.04M 64.49M 68.83M 68.41M 63.60M
Total Assets 39.04M 45.55M 48.72M 59.45M 71.81M 79.72M 98.62M 105.02M 113.69M 119.95M
Current Liabilities 12.14M 13.62M 10.95M 11.05M 12.50M 9.47M 13.23M 12.32M 11.61M 10.98M
Total Liabilities 20.41M 21.31M 17.36M 20.92M 22.11M 18.41M 25.36M 19.43M 18.70M 16.38M
Stockholder' Equity 18.62M 24.24M 31.37M 38.53M 49.70M 61.31M 73.26M 85.59M 94.99M 103.57M
Current Ratio 1.68 2.10 2.71 3.51 4.06 6.13 4.87 5.59 5.89 5.79
TL-to-TA 0.52 0.47 0.36 0.35 0.31 0.23 0.26 0.19 0.16 0.14

Consistent Reinvestment of Profits over the past 10 years

UFPT has consistently retained profits. This may put UFPT in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, UFPT can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 8.26M 12.42M 17.54M 23.47M 32.71M 43.06M 53.95M 65.23M 72.79M 80.38M
Retained Earnings Growth - 50.34% 41.19% 33.81% 39.41% 31.63% 25.30% 20.90% 11.59% 10.43%

Competitive Industry over the past 10 years

UFPT is likely operating in an industry with medium to low barriers to entry. This may mean that UFPT doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that UFPT invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.09 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 2.51M 4.16M 5.12M 5.93M 9.25M 10.35M 10.90M 11.28M 7.56M 7.59M
divided by
Revenue 93.75M 93.60M 110.03M 99.23M 120.77M 127.24M 130.96M 139.22M 139.31M 138.85M
Net Profit Margin 2.68% 4.44% 4.65% 5.98% 7.66% 8.13% 8.32% 8.10% 5.43% 5.47%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. UFPT has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$26.67 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 19.24M 22.81M 28.56M 26.72M 34.62M 36.24M 38.19M 40.65M 36.88M 37.45M
divided by
Revenue 93.75M 93.60M 110.03M 99.23M 120.77M 127.24M 130.96M 139.22M 139.31M 138.85M
Gross Margin 20.52% 24.37% 25.96% 26.93% 28.66% 28.48% 29.16% 29.20% 26.47% 26.97%

High Capital Intensity over the past 10 years

UFPT spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

82.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 1.52M 2.10M 2.76M 1.86M 3.29M 3.74M 11.99M 5.83M 13.44M 16.32M
divided by
Net Income 2.51M 4.16M 5.12M 5.93M 9.25M 10.35M 10.90M 11.28M 7.56M 7.59M
Capital Expenditure Ratio 60.26% 50.51% 54.01% 31.32% 35.53% 36.16% 110.08% 51.70% 177.75% 214.95%

Inconsistent Dividend History over the past 10 years

UFPT has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - 105,000.00 105,000.00 289,183.00 1.20M - - -
divided by
Shares Outstanding 5.57M 5.86M 6.26M 6.29M 6.75M 7.00M 7.03M 7.11M 7.18M 7.22M
Dividend Paid Per Share - - - 0.02 0.02 0.04 0.17 - - -
Price at Year End 5.62 7.30 5.15 6.51 11.94 14.77 17.34 25.94 24.92 23.33
Dividend Yield - - - 0.26% 0.13% 0.28% 0.98% - - -

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that UFPT hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 5.57M 5.86M 6.26M 6.29M 6.75M 7.00M 7.03M 7.11M 7.18M 7.22M
Stock Bought Back - -4.95% -6.41% -0.50% -6.74% -3.58% -0.42% -1.08% -0.98% -0.61%
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