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Is this Large Market Cap Stock target price reasonable for Universal Forest Products Inc. (NASDAQ:UFPI)?

The company in question is, Universal Forest Products Inc. (NASDAQ:UFPI) currently with a stock price of 99.54 (1.81% today). The market cap for Universal Forest Products Inc. is 2011.13, and is in the sector Industrial Goods, and Lumber, Wood Production industry. The target price for Universal Forest Products Inc. is 100. Currently Universal Forest Products Inc. is trading with a P/E of 20.49, and a forward P/E of 18.5. Average volume for Universal Forest Products Inc. is 136.76 and so far today it is 41371.

Performance in the last year for Universal Forest Products Inc. has been 61.86%. For EPS growth, Universal Forest Products Inc. has seen a growth of 39.20%, and is looking to grow in the next year to 9.19%. More long term stats show that EPS growth has been 34.90% over the last five years and could be 10.00% for the next five years. Universal Forest Products Inc. has seen sales growth quarter over quarter at -40.70%, with EPS growth quarter over quarter at -8.60%. The 20-day simple moving average is -4.21%, with the 200-day simple moving average coming to 14.32%.

Since the IPO date for Universal Forest Products Inc. on the 11/10/1993, Universal Forest Products Inc. has seen performance year to date to be 43.72%. With Universal Forest Products Inc. trading at 99.54, the dividend yield is 0.86%, and the EPS is 4.77.

So could Universal Forest Products Inc., be undervalued? Well as said before P/E is 20.49. The PEG is 2.05, P/S is 0.68 and the P/B is at 2.42. The P/cash is 20.69, with P/free cash flow at 16.28.

Universal Forest Products Inc. ability to deal with debt shows that the current ratio is 3.1, and the quick ratio is 1.8. This is with long term debt/equity at 0.1, and total debt/equity at 0.11.

In terms of margins, Universal Forest Products Inc. has a gross margin of 14.90%, an operating margin of 5.40% and a profit margin of 3.20%.Payout ratio for Universal Forest Products Inc. is 17.60%. Return on assets come to 8.40% with return on investment coming to 10.70%.

Insider ownership for Universal Forest Products Inc., is at 0.90% and institutional ownership comes to 84.30%. Outstanding shares are at 20.57. While shares float is 19.82. The float short is currently 2.07%, and short ratio is 2.99.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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