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UFP Industries Forward Rate of Return (Yacktman) %

: 24.95% (As of Jun. 2022)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. UFP Industries's forward rate of return for was 24.95%.

The historical rank and industry rank for UFP Industries's Forward Rate of Return (Yacktman) % or its related term are showing as below:

UFPI' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -11.85   Med: 20.8   Max: 25.18
Current: 23.78

During the past 13 years, UFP Industries's highest Forward Rate of Return was 25.18. The lowest was -11.85. And the median was 20.80.

UFPI's Forward Rate of Return (Yacktman) % is ranked better than
83.05% of 236 companies
in the Forest Products industry
Industry Median: 7.53 vs UFPI: 23.78

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


UFP Industries Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for UFP Industries's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

UFP Industries Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.81 23.93 20.47 20.69 23.36

UFP Industries Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.41 24.06 23.36 22.81 24.95

Competitive Comparison

For the Lumber & Wood Production subindustry, UFP Industries's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

UFP Industries Forward Rate of Return (Yacktman) % Distribution

For the Forest Products industry and Basic Materials sector, UFP Industries's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where UFP Industries's Forward Rate of Return (Yacktman) % falls into.



UFP Industries Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

UFP Industries's Forward Rate of Return of Jun. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=3.37219048/68.14+0.2
=24.95 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


UFP Industries  (NAS:UFPI) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


UFP Industries Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of UFP Industries's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


UFP Industries Business Description

UFP Industries logo
Industry
Traded in Other Exchanges
Address
2801 East Beltline Avenue NE, Grand Rapids, MI, USA, 49525
UFP Industries Inc produces and sells lumber and treated wood products in three main customer categories: retail, industrial, and construction. The retail category, which generates the most revenue, sells lumber products to retailers, including big-box home improvement retailers. The industrial category sells wood pallets, boxes, packaging crates, and other containers used for industrial shipping. The construction category sells manufactured housing and building materials to the construction industry. The vast majority revenue is generated in the United States.
Executives
Mclean Benjamin J. director 2801 E BELTLINE AVE NE GRAND RAPIDS MI 49525
Worthington Scott A officer: President, UFP Industrial, LLC 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Budden Joan A director 4200 E BELTLINE GRAND RAPIDS MI 49525
Uhlig-eastin Chad C. officer: Exec Vice Pres Purchasing 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Schultz Terrence L. officer: President of idX Corporation 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Wooldridge Michael G. director 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Walker Brian C director
West Jonathan E. officer: XVP UFP Eastern Div - South 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Benton Patrick M. officer: XVP UFP Eastern Div - North 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Tuuk Mary E director 38 FOUNTAIN SQUARE PLAZA MD 10 AT 76 CINCINNATI OH 45263
Tutas David A. officer: Vice President Legal & Secty 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Rhodes Thomas Wayne director 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
James Donald L officer: XVP National Sales 2801 EAST BELTLINE, N.E. GRAND RAPIDS MI 49525
Engler John M director 2801 EAST BELTLINE, N.E. GRAND RAPIDS MI 49525
Mordell Michael F officer: Exec VP Purchasing 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525

UFP Industries Headlines

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