Quality Investor

Patrick Industries, Inc.

Rank #230Capital Return

PATK · Nasdaq · Consumer Cyclical

Patrick Industries, Inc. (PATK) — Rank #230 by gross profitability (GP/assets 0.28) · ROE 11.9% · Piotroski F-Score 7 / 9.

As-of 2026-09-28 · CIK 0000076605 · all metrics point-in-time as of the filing date.

About

Patrick Industries, Inc. manufactures and distributes component and materials for recreational vehicle, marine, powersports, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada.

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The company operates through Manufacturing and Distribution segments. Its Manufacturing segment manufactures and sells laminated for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinetry; polymer-based and other flooring products; and dash panels. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, and marine hardware and accessories; slotwall panels and components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio systems, appliances, and marine accessories; wiring, electrical, and plumbing products; fiber reinforced polyester products; and cement siding, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc.

was incorporated in 1959 and is based in Elkhart, Indiana.

Industry
Recreational Vehicles
Sector
Consumer Cyclical
State
IN
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

10,000

Industry

Recreational Vehicles

Exchange

Nasdaq

Signal Flags

2 green1 yellow1 red
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Valuation convergenceEPS declining, shares diluting, and revenue growth decelerating simultaneously

Quality Profile

Profitability

1/1 pass
GP / assets
0.28
Return on equity
11.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.84
Current ratio
2.67×
Net cash
-$1.39B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.5%

Growth

1/2 pass
Revenue growth
6.3%
Piotroski F-Score
7 / 9
Share dilution
2.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.28

Primary signal (Novy-Marx).

3rd of 11 SIC 3714 peers

Return on equity

11.9%

Gross margin

23.1%

5th of 11 SIC 3714 peers

Revenue growth (YoY)

6.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-6.8%

Revenue CAGR (5Y)

9.7%

Earnings CAGR (3Y)

-25.6%

FCF CAGR (3Y)

-9.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.84

10th of 10 SIC 3714 peers (best = lowest)

Current ratio

2.67×

4th of 11 SIC 3714 peers

Quick ratio

0.80×

Net cash

-$1.39B

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 16 years of history

Strong
2008-2009 (GFC)
N/AN/A
2020 (COVID)
6.4%Grew through it
Worst year on record(any fiscal year, not recession-limited)
-33.3%Significant decline

Cash-flow health

Free cash flow

$246.49M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.83

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.5%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
40.9%4/5 Strong
FCF coverage
4.46×5/5 Strong
Dividend growth streak
6 yr3/5 Good
Balance-sheet health
D/E 1.84 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Capital Return
Hypergrowth
Decline