What is UFP Technologies Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, UFP Technologies's Probability of Financial Distress (%) is 0.02%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of UFP Technologies's Probability of Financial Distress (%)
For the Medical Devices subindustry, UFP Technologies's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
UFP Technologies's Probability of Financial Distress (%) Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, UFP Technologies's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where UFP Technologies's Probability of Financial Distress (%) falls into.
UFP Technologies Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -8.34 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
UFP Technologies (UFP Technologies) Business Description
Traded in Other Exchanges
Address
100 Hale Street, Newburyport, MA, USA, 01950-3504
UFP Technologies Inc is a designer and custom manufacturer of components, subassemblies, products and packaging utilizing highly specialized foams, films, and plastics primarily for the medical market. The company manufactures its products by converting raw materials using laminating, molding, radio frequency and impulse welding and fabricating manufacturing techniques. It is an important link in the medical device supply chain and a valued outsource partner to many of the top medical device manufacturers in the world. The company's single-use and single-patient devices and components are used in a wide range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging.
Executives
| R Jeffrey Bailly |
director, 10 percent owner, officer: President and CEO |
100 HALE STREET, NEWBURYPORT MA 01950 |
| Mitchell Rock |
officer: Vice President |
C/O UFP TECHNOLOGIES, INC., 172 EAST MAIN STREET, GEORGETOWN MA 01833 |
| Jason Holt |
officer: Vice President |
100 HALE STREET, NEWBURYPORT MA 01950 |
| Symeria Hudson |
director |
100 HALE STREET, NEWBURYPORT MA 01950 |
| Joseph Hassett |
director |
ONE TECHNOLOGY WAY, NORWOOD MA 02062 |
| Daniel C Croteau |
director |
C/O LYNCH, BREWER, HOFFMAN & FINK, LLP, 75 FEDERAL STREET, 7TH FLOOR, BOSTON MA 02110 |
| Cynthia L Feldmann |
director |
17 WINTHROP ROAD, WAYLAND MA 01778 |
| Christopher P. Litterio |
officer: Senior Vice President |
C/O UFP TECHNOLOGIES, INC., 100 HALE STREET, NEWBURYPORT MA 02143 |
| Ronald J Lataille |
officer: Chief Financial Officer |
|
| Thomas Oberdorf |
director |
C/O GETTY IMAGES, INC., 601 N 34TH ST, SEATTLE WA 98103 |
| Marc D Kozin |
director |
|
| Steve Cardin |
officer: Vice President |
100 HALE STREET, NEWBURYPORT MA 01950 |
| Daniel J Shaw |
officer: Vice President |
|
| W David Smith |
officer: Vice President |
172 EAST MAIN STREET, GEORGETOWN MA 01833 |
| Pierce Robert W Jr |
director |
C/O UFP TECHNOLOGIES, INC., 172 EAST MAIN STREET, GEORGETOWN MA 01833 |
UFP Technologies (UFP Technologies) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
UFPT has been successfully added to your