UFPT  Ufp Technologies Inc.

Exchange

NASDAQ

Sector

Capital Goods

Industry

Containers/Packaging

Market Cap.

216.57M

Vuru Grade

38.55/100

Current Price

$29.80
-1.0475 (-3.3955%)

Growth Price

$17.42
Overvalued by 41.56%

Stability Price

$12.77
Overvalued by 57.16%

Company Metrics

  • P/E 24.2297
  • P/S 1.508
  • P/B 1.8849
  • EPS 1.23
  • Cash ROIC 4.31%
  • Cash Ratio 3.28
  • Dividend 0 / 0%
  • Avg. Vol. 14,172.00
  • Shares 7.27M
  • Market Cap. 216.57M

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

Reviewing UFP Technologies (NASDAQ:UFPT) and Celanese Corporation (CE)
Dispatch Tribunal - Sep 6, 2017
UFP Technologies (NASDAQ: UFPT) and Celanese Corporation (NYSE:CE) are both industrial products companies, but which is the better stock?
Thomson Horstmann & Bryant Lowered By $303828 Its Ufp Tech (UFPT) Holding ... - Wolcott Daily
UFP Technologies Inc. (UFPT) Moves Lower on Volume Spike for November 06
Equities.com - Nov 6, 2017
UFP Technologies Inc. (UFPT) traded on unusually high volume on Nov. 06, as the stock lost 1.29% to close at $26.70. On the day, UFP Technologies Inc. saw 53,812 shares trade hands on 289 trades. Considering that the stock averages only a daily volume ...
UFP Technologies Announces Q3 Results, Adds New General Counsel/Senior VP - GlobeNewswire (press release)
Somewhat Critical News Coverage Somewhat Unlikely to Impact UFP Technologies ... - The Ledger Gazette
UFP Technologies Inc. (UFPT) Moves Higher on Volume Spike for November 07
Equities.com - Nov 7, 2017
UFP Technologies Inc. (UFPT) traded on unusually high volume on Nov. 07, as the stock gained 0.19% to close at $26.75. On the day, UFP Technologies Inc. saw 40,611 shares trade hands on 289 trades. Considering that the stock averages only a daily ...
The Insider Selling: UFP Technologies Inc. (UFPT) Insider Sold $265943.60 in Stock - BangaloreWeekly
UFP Technologies (UFPT) Getting Somewhat Negative Press Coverage, Study Finds
Week Herald - 54 minutes ago
UFP Technologies logo Media coverage about UFP Technologies (NASDAQ:UFPT) has been trending somewhat negative on Wednesday, Accern Sentiment Analysis reports.
UFP Technologies, Inc. (NASDAQ:UFPT) Releases Earnings Results, Misses ...
The Ledger Gazette - Nov 19, 2017
UFP Technologies logo UFP Technologies, Inc. (NASDAQ:UFPT) posted its earnings results on Thursday, November 2nd. The industrial products company reported $0.23 earnings per share for the quarter, missing the Zacks' consensus estimate of $0.36 by ...
Critical Review: UFP Technologies (NASDAQ:UFPT) vs. Albemarle Corporation (ALB) - Dispatch Tribunal
UFP Technologies (UFPT) Receives News Sentiment Rating of -0.05 - StockNewsTimes
Nationwide Fund Advisors Has $1.15 Million Stake in UFP Technologies, Inc. (UFPT)
The Ledger Gazette - Nov 1, 2017
UFP Technologies logo Nationwide Fund Advisors boosted its holdings in UFP Technologies, Inc. (NASDAQ:UFPT) by 952.3% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC).
UFP Technologies (UFPT) Given Media Impact Rating of -0.11 - Dispatch Tribunal
This Weeks Target Prices For UFP Technologies, Inc. (UFPT) - NewsDen
Quantum Capital Management Acquires Shares of 34979 UFP Technologies, Inc. (UFPT)
Dispatch Tribunal - Nov 17, 2017
UFP Technologies logo Quantum Capital Management acquired a new position in UFP Technologies, Inc. (NASDAQ:UFPT) in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission.
Head to Head Survey: UFP Technologies (NASDAQ:UFPT) & CSW Industrials (CSWI)
Dispatch Tribunal - Nov 21, 2017
13.3% of UFP Technologies shares are owned by insiders. Comparatively, 2.1% of CSW Industrials shares are owned by insiders.
Brokers Set Expectations for UFP Technologies, Inc.'s Q1 2018 Earnings (UFPT)
Dispatch Tribunal - Nov 18, 2017
UFP Technologies, Inc. (NASDAQ:UFPT) - Taglich Brothers reduced their Q1 2018 earnings per share (EPS) estimates for shares of UFP Technologies in a note issued to investors on Wednesday.
Ufp Technologies Inc (NASDAQ:UFPT) Institutional Investors Sentiment Index Up ... - BZ Weekly
Is Ufp Technologies Inc (NASDAQ:UFPT) Going to Burn These Institutional Investors? - Weekly Register
Somewhat Critical Press Coverage Somewhat Unlikely to Affect UFP Technologies ...
The Ledger Gazette - Nov 10, 2017
UFP Technologies logo Media stories about UFP Technologies (NASDAQ:UFPT) have been trending somewhat negative on Thursday, according to Accern.
UFP Technologies, Inc. (UFPT) is Thomson Horstmann & Bryant Inc.'s 10th ... - TrueBlueTribune
27.28% to Target, KeyBanc Reiterates “Buy” Rating for GoodYear Tire (GT) Stock ... - HuronReport
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.

$29.80 Current Price

$17.42 Growth Price (DCF)

Overvalued by 41.56%


Growth Rate Assumed by Market: 48.89%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.77 Stability Price (EPV)

Overvalued by 57.16%


Discount Rate: 15.0%

$7.56 NCA Price

Overvalued by 74.62%

$27.64 Book Price

Overvalued by 7.24%


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 $4.31 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 4.17M 10.28M -2.31M -3.22M 2.10M
divided by
Invested Capital 51.91M 55.40M 68.03M 79.16M 87.02M
Cash ROIC 8.03% 18.55% -3.40% -4.07% 2.41%

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 $10.08 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 10.90M 11.28M 7.56M 7.59M 7.97M
divided by
Stockholders' Equity 73.26M 85.59M 94.99M 103.57M 113.05M
Return on Equity 14.87% 13.17% 7.96% 7.33% 7.05%

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
2007200820092010201120122013201420152016
Free Cash Flow 8.05M 3.92M 8.83M 9.28M 7.97M 4.17M 10.28M -2.31M -3.22M 2.10M

Very Strong Balance Sheet

UFPT has more Cash than its Total Liabilities, resulting in $2.27 Net Cash per share. In other words, if you buy UFPT today, the price you're paying for shares is actually $27.53 because $2.27 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
2007200820092010201120122013201420152016
Cash 9.06M 6.73M 15.00M 24.43M 29.85M 33.48M 37.30M 34.05M 29.80M 31.36M
Current Assets 28.58M 29.64M 38.75M 50.77M 58.04M 64.49M 68.83M 68.41M 63.60M 69.85M
Total Assets 45.55M 48.72M 59.45M 71.81M 79.72M 98.62M 105.02M 113.69M 119.95M 127.93M
Current Liabilities 13.62M 10.95M 11.05M 12.50M 9.47M 13.23M 12.32M 11.61M 10.98M 9.56M
Total Liabilities 21.31M 17.36M 20.92M 22.11M 18.41M 25.36M 19.43M 18.70M 16.38M 14.88M
Stockholder' Equity 24.24M 31.37M 38.53M 49.70M 61.31M 73.26M 85.59M 94.99M 103.57M 113.05M
Current Ratio 2.10 2.71 3.51 4.06 6.13 4.87 5.59 5.89 5.79 7.31
TL-to-TA 0.47 0.36 0.35 0.31 0.23 0.26 0.19 0.16 0.14 0.12

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
2007200820092010201120122013201420152016
Retained Earnings 12.42M 17.54M 23.47M 32.71M 43.06M 53.95M 65.23M 72.79M 80.38M 88.35M
Retained Earnings Growth - 41.19% 33.81% 39.41% 31.63% 25.30% 20.90% 11.59% 10.43% 9.92%

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 $6.36 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 4.16M 5.12M 5.93M 9.25M 10.35M 10.90M 11.28M 7.56M 7.59M 7.97M
divided by
Revenue 93.60M 110.03M 99.23M 120.77M 127.24M 130.96M 139.22M 139.31M 138.85M 146.13M
Net Profit Margin 4.44% 4.65% 5.98% 7.66% 8.13% 8.32% 8.10% 5.43% 5.47% 5.45%

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.

$26.99 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
2007200820092010201120122013201420152016
Gross Profit 22.81M 28.56M 26.72M 34.62M 36.24M 38.19M 40.65M 36.88M 37.45M 34.65M
divided by
Revenue 93.60M 110.03M 99.23M 120.77M 127.24M 130.96M 139.22M 139.31M 138.85M 146.13M
Gross Margin 24.37% 25.96% 26.93% 28.66% 28.48% 29.16% 29.20% 26.47% 26.97% 23.71%

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.

85.35% 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
2007200820092010201120122013201420152016
Capital Expenditure 2.10M 2.76M 1.86M 3.29M 3.74M 11.99M 5.83M 13.44M 16.32M 7.29M
divided by
Net Income 4.16M 5.12M 5.93M 9.25M 10.35M 10.90M 11.28M 7.56M 7.59M 7.97M
Capital Expenditure Ratio 50.51% 54.01% 31.32% 35.53% 36.16% 110.08% 51.70% 177.75% 214.95% 91.51%

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
2007200820092010201120122013201420152016
Dividend Paid - - 105,000.00 105,000.00 289,183.00 1.20M - - - -
divided by
Shares Outstanding 5.86M 6.26M 6.29M 6.75M 7.00M 7.03M 7.11M 7.18M 7.22M 7.28M
Dividend Paid Per Share - - 0.02 0.02 0.04 0.17 - - - -
Price at Year End 7.30 5.15 6.51 11.94 14.77 17.34 25.94 24.92 23.33 25.45
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
2007200820092010201120122013201420152016
Shares Outstanding 5.86M 6.26M 6.29M 6.75M 7.00M 7.03M 7.11M 7.18M 7.22M 7.28M
Stock Bought Back - -6.41% -0.50% -6.74% -3.58% -0.42% -1.08% -0.98% -0.61% -0.77%
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