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Should You Consider UFP Technologies, Inc. (NASDAQ:UFPT)?

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on UFP Technologies, Inc. (NASDAQ:UFPT) due to its excellent fundamentals in more than one area. UFPT is a company with great financial health as well as a an impressive history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on UFP Technologies here.

Solid track record with excellent balance sheet

UFPT delivered a bottom-line expansion of 85% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, UFPT also outperformed its industry, which delivered a growth of -13%. This is an notable feat for the company. UFPT's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that UFPT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. UFPT seems to have put its debt to good use, generating operating cash levels of 1.03x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqCM:UFPT Income Statement, June 5th 2019

Next Steps:

For UFP Technologies, I've put together three key aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for UFPT’s future growth? Take a look at our free research report of analyst consensus for UFPT’s outlook.
  2. Valuation: What is UFPT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether UFPT is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UFPT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.