UFP Technologies' Earnings Growth Slows Amid Margin Concerns

UFP Technologies reported annual earnings growth of 14.3% and revenue growth forecasts of 5.6% per year. Profit margins came in at 11.2%, slightly lower than last year's 11.7%. The share price is below estimated fair value at $223.04, with minimal risk flagged. The company's consistent profit growth and steady outlook support its position. Analysts project net profit margin to climb to 13.9% within three years, driven by automation investments and operational efficiency upgrades. However, customer concentration raises flags, with major contracts held by Intuitive Surgical and Stryker, increasing concentration risk for both revenue and margins.