DCF Tool

PATK

Patrick Industries, Inc. – Wood Kitchen Cabinet and Countertop Manufacturing
Patrick Industries, Inc. is a major manufacturer and distributor of component products and building products serving the recreational vehicle, marine, manufactured housing, residential housing, high-rise, hospitality, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, and other industrial markets and operates coast-to-coast in various locations throughout the United States and in Canada, China and the Netherlands. Patrick's major manufactured products include decorative vinyl and paper laminated panels, countertops, fabricated aluminum products, wrapped profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass bath fixtures and tile systems, thermoformed shower surrounds, specialty bath and closet building products, fiberglass and plastic helm systems and component products, wiring and wire harnesses, boat covers, towers, tops and frames, electrical systems components including instrument and dash panels, softwoods lumber, interior passage doors, air handling products, RV painting, slotwall panels and components, aluminum fuel tanks, and CNC molds and composite parts and other products. The Company also distributes drywall and drywall finishing products, electronics and audio systems components, wiring, electrical and plumbing products, appliances, cement siding, raw and processed lumber, FRP products, interior passage doors, roofing products, tile, laminate and ceramic flooring, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, various marine aftermarket products, and other miscellaneous products, in addition to providing transportation and logistics services.
Analysis Results
Intrinsic Value $1,574.98
Latest Price $56.64
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 38.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 38.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.6 0.562
2023 0.83 0.726
2024 1.15 0.939
2025 1.58 1.21
2026 2.19 1.57
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 45.7 billion. This corresponds to a present value of 30.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.01 billion. Adding in the terminal value gives a total present value of 35.7 billion.

There are presently 22.7 million outstanding shares, so the intrinsic value per share is 1574.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 974,075,000
Current Cash 122,849,000
Current Liabilities 432,777,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 425,949,000
Change in NCWC 162,542,000
EBIT 351,712,000
Tax Provision 68,907,000
Depreciation and Amortization 104,808,000
Capital Expenditure -64,804,000
Unlevered Free Cash Flow 471,774,663
Current Assets 528,063,000
Current Cash 44,767,000
Current Liabilities 227,389,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 263,407,000
Change in NCWC 67,898,000
EBIT 173,373,000
Tax Provision 33,311,000
Depreciation and Amortization 73,270,000
Capital Expenditure -32,100,000
Unlevered Free Cash Flow 238,142,929
Current Assets 516,834,000
Current Cash 139,390,000
Current Liabilities 186,935,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 195,509,000
Change in NCWC -33,758,000
EBIT 154,442,000
Tax Provision 28,260,000
Depreciation and Amortization 62,795,000
Capital Expenditure -27,661,000
Unlevered Free Cash Flow 118,775,828
Current Assets 385,167,000
Current Cash 6,895,000
Current Liabilities 157,755,000
Current Debt 8,750,000
Non-Cash Working Capital (NCWC) 229,267,000
Change in NCWC 78,740,000
EBIT 178,415,000
Tax Provision 32,147,000
Depreciation and Amortization 55,052,000
Capital Expenditure -34,486,000
Unlevered Free Cash Flow 239,982,187
Current Assets 273,953,000
Current Cash 2,767,000
Current Liabilities 136,425,000
Current Debt 15,766,000
Non-Cash Working Capital (NCWC) 150,527,000
Change in NCWC 54,534,000
EBIT 121,900,000
Tax Provision 27,392,000
Depreciation and Amortization 33,541,000
Capital Expenditure -22,497,000
Unlevered Free Cash Flow 157,957,313
Current Assets 172,769,000
Current Cash 6,449,000
Current Liabilities 86,093,000
Current Debt 15,766,000
Non-Cash Working Capital (NCWC) 95,993,000
Change in NCWC 3,554,000
EBIT 90,837,000
Tax Provision 28,075,000
Depreciation and Amortization 24,362,000
Capital Expenditure -15,406,000
Unlevered Free Cash Flow 72,860,594
Current Assets 139,738,000
Current Cash 87,000
Current Liabilities 57,926,000
Current Debt 10,714,000
Non-Cash Working Capital (NCWC) 92,439,000
Change in NCWC 22,908,000
EBIT 69,969,000
Tax Provision 23,380,000
Depreciation and Amortization 16,775,000
Capital Expenditure -7,958,000
Unlevered Free Cash Flow 76,756,497
Current Assets 114,796,000
Current Cash 123,000
Current Liabilities 45,142,000
Current Debt 0
Non-Cash Working Capital (NCWC) 69,531,000
Change in NCWC 14,277,000
EBIT 51,501,000
Tax Provision 18,404,000
Depreciation and Amortization 10,433,000
Capital Expenditure -6,542,000
Unlevered Free Cash Flow 50,356,387
Current Assets 87,699,000
Current Cash 34,000
Current Liabilities 32,411,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,254,000
Change in NCWC 11,170,000
EBIT 40,515,000
Tax Provision 14,734,000
Depreciation and Amortization 7,297,000
Capital Expenditure -8,669,000
Unlevered Free Cash Flow 34,917,425
Current Assets 73,670,000
Current Cash 434,000
Current Liabilities 29,152,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,084,000
Change in NCWC 19,099,000
EBIT 26,802,000
Tax Provision -6,823,000
Depreciation and Amortization 5,586,000
Capital Expenditure -7,895,000
Unlevered Free Cash Flow 43,592,000

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