Patrick Industries (PATK) capped FY 2025 with Q4 revenue of US$924.2 million and EPS of US$0.90, while trailing twelve month revenue came in at US$4.0 billion and EPS at US$4.16. Over the past few quarters, the company has seen revenue move between US$846.1 million and US$1.05 billion, with quarterly EPS ranging from US$0.45 to US$1.25. This gives investors a clear view of how the top line and per share earnings have tracked into the latest full year run rate. With a trailing net margin of 3.4% versus 3.7% a year earlier, this set of results puts profitability and margin trends firmly in focus for anyone following the story.

See our full analysis for Patrick Industries.

With the headline numbers on the table, the next step is to see how this earnings print lines up against the widely followed Patrick Industries narratives, highlighting where the story holds and where the recent figures raise fresh questions.

3.4% Net Margin Puts Profit Quality Under the Microscope

• On a trailing basis Patrick Industries generated US$4.0b of revenue and US$135.1 million of net income, which works out to a 3.4% net margin versus 3.7% a year earlier.
• Bears often focus on that softer margin and the 9.8% annual earnings decline over five years, and this data gives them some support while also setting a higher bar for the forecasted 25.6% annual earnings growth:
  • The trailing net margin slipping from 3.7% to 3.4% lines up with the bearish view that profitability has been under pressure recently.
  • At the same time, trailing twelve month EPS of US$4.16 and revenue of US$4.0b are the base that those stronger earnings growth forecasts are built on, so anyone leaning bearish will likely be watching closely to see if margins shift from this level.

Stay objective by comparing this margin profile with other suppliers you follow and see whether the recent compression changes how the story feels for you.

Quarterly EPS Range Highlights Earnings Volatility

• Across the last six quarters, basic EPS moved between US$0.45 and US$1.25, with FY 2025 quarterly EPS landing at US$1.17, US$1.00, US$1.09 and US$0.90, which shows earnings per share bouncing around a fairly wide band even as trailing EPS sits at US$4.16.
• What is interesting for the more optimistic crowd is how this choppy pattern feeds into the bullish argument that earnings can still ramp from here, even after a 9.8% annual decline over five years:
  • Supporters of the bullish view can point out that the trailing twelve month EPS of US$4.16 and net income of US$135.1 million are not far off the previous year’s US$4.25 EPS and US$138.4 million of net income, which keeps the base relatively steady for higher growth forecasts.
  • At the same time, the swings between US$0.45 and US$1.25 per quarter highlight the kind of variability that bullish investors need to be comfortable with if they are leaning on that 25.6% earnings growth forecast.

If you want to see how different investors stitch this choppy EPS history into a bigger story, it is worth reading through the shared narratives around the stock. Curious how numbers become stories that shape markets? Explore Community Narratives

34.7x P/E And High Debt Make Valuation A Balancing Act

• The shares trade on a 34.7x P/E against a current price of US$140.85, compared with peer and US Auto Components industry averages of 25.8x and 24.3x, and a DCF fair value of about US$150.23 that sits modestly above the market price.
• Critics highlight that combination of a premium P/E multiple, a trailing 3.4% net margin and a high debt load as key reasons to stay cautious, and the numbers here speak directly to that bearish angle:
  • The higher 34.7x P/E relative to peers together with five year earnings that have declined 9.8% a year gives bears a concrete data point when they say the shares already embed a lot of optimism.
  • On the other hand, the DCF fair value sitting around US$150.23 versus the US$140.85 price means the valuation signal is not one sided, which is why some investors weigh that modest gap against the balance sheet risk and insider selling that have been flagged in the data.

Skeptical investors often start their work here, comparing the 34.7x P/E and US$150.23 DCF fair value to see whether the current price really leaves enough room for comfort.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Patrick Industries's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Patrick Industries combines a premium 34.7x P/E, thinner 3.4% net margin, high debt, and a 9.8% annual earnings decline over five years, which keeps risk front and center.

If that mix of pressured profitability and leverage makes you uneasy, shift some of your research time toward 86 resilient stocks with low risk scores that aim to prioritise resilience over drama.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.