Forensic Analysis · Parts & Accessories Manufacturing · as of Nov 8, 2026
Patrick Industries Inc (PATK)
A forensic read on Patrick Industries Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
3.4
Distress distance
Clean
Earnings quality
3
Forensic signals
11.7%
ROE
6.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Patrick Industries Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 3.4, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
7.9%
FY2025
Return on invested capital.Return on invested capital is 7.9% in the latest fiscal year and steady across FY2023–FY2025, inside a 0.8-point range. After-tax operating profit was $194M in FY2023 and $211M in FY2025, with operating income at 7.5% of revenue in FY2023, 6.9% in FY2024 and 7.0% in FY2025. The capital base behind it grew +19% across FY2023–FY2025, from $2.3B to $2.7B, while the return fell 0.7 points, so the dollars added over that window earned less than the 8.6% the older base was already earning.
+2.4%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +5% over the last 2 years to FY2025 (+2.4%/yr). The count is growing — 33.0M shares in FY2023, 34.6M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~5%.
0.5% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 0.5% of revenue and 8% of free cash flow in FY2025 — about $0.55 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.4% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$3.95B
Revenue Growth YoY+6.3%
Revenue CAGR (2yr)+6.7%
Net Margin3.4%
Free Cash Flow$246.5M
Return on Equity11.7%
Debt / Equity1.09x
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