Should you consider NYSE:BLDR for quality investing?

In this article we will dive into BUILDERS FIRSTSOURCE INC (NYSE:BLDR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BUILDERS FIRSTSOURCE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of BUILDERS FIRSTSOURCE INC

• BUILDERS FIRSTSOURCE INC has achieved substantial revenue growth over the past 5 years, with a 26.43% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of BUILDERS FIRSTSOURCE INC stands at 52.58%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• BUILDERS FIRSTSOURCE INC maintains a healthy Debt/Free Cash Flow Ratio of 1.2, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• BUILDERS FIRSTSOURCE INC exhibits impressive Profit Quality (5-year) with a 104.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 67.6%, BUILDERS FIRSTSOURCE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of BUILDERS FIRSTSOURCE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NYSE:BLDR?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, BLDR scores 6 out of 10 in our fundamental rating. BLDR was compared to 45 industry peers in the Building Products industry. BLDR gets an excellent profitability rating and is at the same time showing great financial health properties. BLDR is cheap, but on the other hand it scores bad on growth. This makes BLDR very considerable for value investing!

Check the latest full fundamental report of BLDR for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.