2024-05-04 05:43:36 ET
Summary
- Patrick Industries is a leading provider of components to recreational vehicles, marine, manufactured housing and various industrial markets.
- The company has achieved outstanding growth in the past 10 years: 38.8% CAGR in free cash flow, 19.28% CAGR in revenues and 20.71% CAGR in EPS to name a few.
- The balance sheet is fairly clean: current ratio above 2x in the last decade and a net leverage ratio on track to the 2.25-2.5 desired range.
- PATK has executed a very well-timed and accretive acquisition strategy, taking over multiple companies every year.
- Based on a discounted cash flow analysis, PATK seems to be trading with a 30% discount on its fair price.
It is certainly difficult to look the other way when one stumbles across an impressive stock momentum. And I certainly got intrigued by Patrick Industries, Inc. ( PATK )’s share price appreciation of 50% in the last twelve months. But the good performance goes back in time, surpassing that of the S&P 500 ( SPY ) in the last ten years. When such thing happens, most of the times it is a phenomenal business’ fault:
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For further details see:
Patrick Industries: An Acquisitions Masterclass For Long-Term Growth