Universal Forest Products, Inc.
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Universal Forest Products, Inc. Financial Snapshot
Operating Performance
Fast Facts
2801 East Beltline NE, Grand Rapids, The company reported revenues of US$1,890.85
Headquarters Address
49525 million during 2010, with a CAGR of -8.22% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 1 616 3646161
13.02% over the previous fiscal year. In 2010, the
company recorded an operating margin of 1.60%, as
Fax + 1 616 3617534 against 2.56% in 2009.
Website www.ufpi.com
Revenue and Margins
Ticker Symbol, Stock Exchange UFPI, NASDAQ
Number of Employees 5,100
Fiscal Year End December
Revenue (in US$ million) 1,890.85
SWOT Analysis
Strengths Weaknesses
Return on Equity
Wide product and service offerings Geographical concentration
The company recorded a return on equity (ROE) of
Strong market position Limited customer base 3.03% for 2010, as compared to its peers,
Weyerhaeuser Company (Ticker: WY), Louisiana-
Pacific Corporation (Ticker: LPX) and Builders
Strong liquidity position FirstSource, Inc. (Ticker: BLDR), which recorded
ROEs of 27.78%, -3.20% and -59.88% respectively.
Opportunities Threats The company reported an operating margin of 1.60%
in 2010.
Recovering economy Fluctuation in lumber prices
Return on Equity
Demand for FSC certified timber Environmental laws and regulations
Rising demand of senior housing in the
Seasonality and weather conditions
US
Liquidity Position
The company reported a current ratio of 3.19 in 2010,
as compared to its peers, Weyerhaeuser Company,
Louisiana-Pacific Corporation and Builders
FirstSource, Inc., which recorded current ratios of
2.41, 5.29 and 3.08 respectively. As of December
2010, the company recorded cash and short-term
investments of worth US$43.36 million, against
US$0.71 million current debt. The company reported
a debt to equity ratio of 0.10 in 2010 as compared to
its peers, Weyerhaeuser Company, Louisiana-Pacific
Corporation and Builders FirstSource, Inc., which
recorded debt to equity ratios of 1.10, 0.59 and 1.06
respectively.
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Universal Forest Products, Inc. - SWOT Profile Page 1
Universal Forest Products, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
1.4 Key Financial Performance Indicators ...................................................................................................................7
1.4.1 Revenue and Operating Profit ...........................................................................................................................7
1.4.2 Asset, Liabilities and Capex ...............................................................................................................................8
1.4.3 Operational Efficiency ........................................................................................................................................9
1.4.4 Solvency ..........................................................................................................................................................10
1.4.5 Valuation ..........................................................................................................................................................11
1.5 Competitive Benchmarking ..................................................................................................................................12
1.5.1 Efficiency ..........................................................................................................................................................12
1.5.2 Capital Expenditure .......................................................................................