UFP Technologies (UFPT) Stock Looks Rich Despite Its 378% Five Year Run

UFP Technologies has seen a powerful run in its share price in recent years, which naturally raises a question for anyone looking at the stock today. Is the current valuation supported by the company’s earnings, or has sentiment moved ahead of the underlying profit stream? Over the past 5 years, UFP Technologies has delivered a total return of about 3.8x, which puts real pressure on the current earnings multiple to carry that track record forward. The business leans heavily on specialized...