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Patrick Industries, Inc. (NASDAQ:PATK): The Best Of Both Worlds

Ray Foley

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Patrick Industries, Inc. (NASDAQ:PATK) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of PATK, it is a company with a an impressive history of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Patrick Industries here.

Good value with proven track record

PATK delivered a bottom-line expansion of 71% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did PATK outperformed its past performance, its growth also exceeded the Building industry expansion, which generated a 25% earnings growth. This is what investors like to see! PATK’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if PATK’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, PATK’s share price is trading below the group’s average. This bolsters the proposition that PATK’s price is currently discounted.

NASDAQGS:PATK Income Statement Export February 11th 19

Next Steps:

For Patrick Industries, I’ve compiled three fundamental aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for PATK’s future growth? Take a look at our free research report of analyst consensus for PATK’s outlook.
  2. Financial Health: Are PATK’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PATK? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.