dimanche 29 avril 2018

Patrick Industries (PATK)

Angelo Dallas wrote about Patrick Industries a while ago and I thought that this stock was interesting. But I passed. Probably because the sector didn't appeal to me. And what's the sector of that Patrick stuff?

In a few words, they manufacture and distribute many products for the recreational vehicule. They do some other stuff too, but that's their main mission.

If you're under 80 years old, you're probably not interested in that kind of stuff but it looks that with the aging of the population, there's more and more of these very old people who want to travel in a fortress and sleep in the parkings of walmarts. Do we really have to have an opinion about the stocks we own as long as they produce shit that appeal to specific people and they stay away from controversy? Probably that we don't have to. So I'll just shut up and continue with the facts.

First, they manufacture their stuff. That's a great start. Amazon won't start manufacture RV stuff soon. They perhaps distribute RV stuff but anyway they distribute anything about everything.

Then, what about the numbers?

They're excellent.

Stock performance last 5 years: 530%
Stock performance last 5 years: 1750%
Current ROE: 28
Average ROE last 5 years: 32
EPS growth last 5 years: 22%
Sales growth last 5 years: 30%
Current PE: 17
Forward PE: 12
Debt level: Medium 
Buyback/Dilution: Some dilution, but not excessive
Beta: 0,8
Cash flow growth last 5 years: Steady and great

There's a lot of momentum there: For the last quarter, sales were up 60% and earnings were up 53%. 

The only negative side is that the earnings are not that predictable. But apart from that, I see very little negative about that stock.

Anyway, it's always a question of proportions. If you want to put 80% of your portfolio on a stock like that (or on any other stock), you're dumb. If you want to put 3 to 5% of your portfolio on that stock, I don't think it would be a bad idea.

2 commentaires:

  1. This just in:


    These compounding machines just keep making acquisitions...and that keeps increasing their net income per share.

  2. The RV's industrie stocks (Thor and Winnebago) been pounded severely earlier this week by an analyst report stating that their inventory is unsustainable. Because PATK is a supplier of these company, their stock suffered but to a lesser extent (-23% instead of -43%).

    These stocks are currently trading at a very low price and the fundamentals are there despite this high inventory rumour.