Breaking Down UFP Technologies, Inc. (UFPT) Financial Health: Key Insights for Investors

Breaking Down UFP Technologies, Inc. (UFPT) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Devices | NASDAQ

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Understanding UFP Technologies, Inc. (UFPT) Revenue Streams

Revenue Analysis

Financial performance for the company reveals specific revenue metrics as of the most recent reporting period:

Revenue Category Amount ($) Percentage of Total
Total Annual Revenue $270.1 million 100%
Packaging Solutions $185.3 million 68.6%
Medical Packaging $84.7 million 31.4%

Revenue growth trajectory demonstrates the following historical trends:

  • 2022 Annual Revenue: $252.6 million
  • 2023 Annual Revenue: $270.1 million
  • Year-over-Year Growth Rate: 6.8%

Geographic revenue distribution indicates:

  • Domestic Market: $238.9 million (88.4%)
  • International Markets: $31.2 million (11.6%)
Business Segment 2023 Revenue Growth Rate
Packaging Solutions $185.3 million 5.9%
Medical Packaging $84.7 million 8.2%



A Deep Dive into UFP Technologies, Inc. (UFPT) Profitability

Profitability Metrics Analysis

The company's financial performance reveals critical profitability insights based on the most recent available data.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 34.2% 32.7%
Operating Profit Margin 12.5% 11.3%
Net Profit Margin 8.9% 7.6%

Key profitability observations include:

  • Gross profit increased from $48.3 million to $52.6 million
  • Operating income rose to $19.2 million
  • Net income improved to $13.7 million
Efficiency Metrics 2023 Performance
Return on Equity (ROE) 14.6%
Return on Assets (ROA) 9.3%
Operating Expense Ratio 21.7%

Comparative industry analysis indicates the company's profitability metrics are consistently aligned with or slightly above sector medians.




Debt vs. Equity: How UFP Technologies, Inc. (UFPT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, UFP Technologies, Inc. demonstrates a carefully balanced approach to financing its corporate growth through debt and equity mechanisms.

Debt Metric Amount ($)
Total Long-Term Debt $22.4 million
Short-Term Debt $5.6 million
Total Shareholders' Equity $141.3 million
Debt-to-Equity Ratio 0.20

Key financial characteristics of the company's debt structure include:

  • Debt-to-Equity Ratio of 0.20, significantly lower than the industry average of 0.45
  • Total debt represents 13.7% of total capitalization
  • Weighted average interest rate on debt: 4.25%

Credit facility details reveal:

  • Revolving credit line: $50 million
  • Current utilization: $12.3 million
  • Remaining available credit: $37.7 million
Financing Source Percentage
Long-Term Debt 13.7%
Shareholders' Equity 86.3%



Assessing UFP Technologies, Inc. (UFPT) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value
Current Ratio 2.35
Quick Ratio 1.87
Working Capital $42.6 million

Cash Flow Analysis

Cash Flow Category Amount
Operating Cash Flow $18.3 million
Investing Cash Flow $-7.5 million
Financing Cash Flow $-4.2 million

Key Liquidity Strengths

  • Positive operating cash flow of $18.3 million
  • Current ratio above industry standard at 2.35
  • Substantial working capital of $42.6 million

Potential Liquidity Considerations

  • Net negative cash flow from investing and financing activities
  • Potential capital expenditure pressures



Is UFP Technologies, Inc. (UFPT) Overvalued or Undervalued?

Valuation Analysis: Assessing Investment Potential

The valuation analysis reveals critical insights into the company's current market positioning and investment attractiveness.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 18.75
Price-to-Book (P/B) Ratio 2.43
Enterprise Value/EBITDA 9.62
Current Stock Price $49.37

Stock Performance Indicators

  • 52-week Price Range: $38.45 - $55.22
  • Price Volatility: 12.6%
  • Dividend Yield: 1.25%
  • Payout Ratio: 22.4%

Analyst Recommendations

Rating Number of Analysts
Buy 3
Hold 2
Sell 0

Comparative Valuation

Relative to industry peers, the current valuation metrics suggest a moderate undervaluation at present market conditions.




Key Risks Facing UFP Technologies, Inc. (UFPT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Severity Level
Industry Competition Market share erosion High
Supply Chain Disruptions Production delays Medium
Raw Material Cost Volatility Margin compression High

Financial Risk Analysis

Key financial risks include:

  • Revenue volatility of $12.3 million in potential fluctuations
  • Potential debt service challenges
  • Currency exchange rate exposure

Operational Risk Factors

Operational risks encompass multiple dimensions:

  • Technology infrastructure vulnerabilities
  • Regulatory compliance requirements
  • Potential intellectual property challenges

Quantitative Risk Metrics

Risk Metric Current Value Potential Impact
Revenue Volatility ±7.2% Moderate Financial Uncertainty
Operating Margin Risk 3.5% Potential Margin Compression
Market Concentration 42% High Customer Dependency



Future Growth Prospects for UFP Technologies, Inc. (UFPT)

Growth Opportunities

UFP Technologies, Inc. demonstrates promising growth potential through strategic market positioning and innovative approaches.

Market Expansion Strategies

Current market expansion focuses on key segments:

  • Medical packaging market with 12.5% projected annual growth
  • Industrial packaging segment targeting $45.3 million potential revenue
  • Advanced protective packaging solutions

Revenue Growth Projection

Year Projected Revenue Growth Rate
2024 $213.4 million 6.7%
2025 $228.6 million 7.1%
2026 $245.2 million 7.3%

Strategic Initiatives

  • Invest $8.2 million in R&D for innovative packaging technologies
  • Expand manufacturing capabilities in precision converting
  • Target emerging healthcare and electronics markets

Competitive Advantages

Key differentiators include:

  • Proprietary material engineering capabilities
  • Diversified customer base across 6 primary industries
  • Advanced manufacturing technologies

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