NYSE:BLDR is an undervalued gem with solid fundamentals.

Last update: Jun 27, 2024

Uncover the hidden value in BUILDERS FIRSTSOURCE INC (NYSE:BLDR) as our stock screening tool recommends it as an undervalued choice. NYSE:BLDR maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Evaluating Valuation: NYSE:BLDR

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:BLDR scores a 7 out of 10:

The Price/Earnings ratio is 9.54, which indicates a very decent valuation of BLDR.
95.00% of the companies in the same industry are more expensive than BLDR, based on the Price/Earnings ratio.
BLDR is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of BLDR.
Based on the Price/Forward Earnings ratio, BLDR is valued cheaper than 87.50% of the companies in the same industry.
BLDR is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.99, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, BLDR is valued cheaper than 85.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BLDR is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The decent profitability rating of BLDR may justify a higher PE ratio.

Evaluating Profitability: NYSE:BLDR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BLDR was assigned a score of 7 for profitability:

BLDR has a Return On Assets of 13.12%. This is in the better half of the industry: BLDR outperforms 77.50% of its industry peers.
With a decent Return On Equity value of 29.57%, BLDR is doing good in the industry, outperforming 77.50% of the companies in the same industry.
The Return On Invested Capital of BLDR (17.15%) is better than 75.00% of its industry peers.
BLDR had an Average Return On Invested Capital over the past 3 years of 24.82%. This is significantly above the industry average of 13.58%.
The last Return On Invested Capital (17.15%) for BLDR is well below the 3 year average (24.82%), which needs to be investigated, but indicates that BLDR had better years and this may not be a problem.
In the last couple of years the Profit Margin of BLDR has grown nicely.
BLDR's Operating Margin has improved in the last couple of years.
BLDR's Gross Margin has improved in the last couple of years.

How do we evaluate the Health for NYSE:BLDR?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:BLDR, the assigned 5 for health provides valuable insights:

BLDR has an Altman-Z score of 4.08. This indicates that BLDR is financially healthy and has little risk of bankruptcy at the moment.
BLDR has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as BLDR would need 2.46 years to pay back of all of its debts.
Even though the debt/equity ratio score it not favorable for BLDR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
A Current Ratio of 2.21 indicates that BLDR has no problem at all paying its short term obligations.

Exploring NYSE:BLDR's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:BLDR scores a 4 out of 10:

The Earnings Per Share has been growing by 50.28% on average over the past years. This is a very strong growth
Measured over the past years, BLDR shows a quite strong growth in Revenue. The Revenue has been growing by 17.22% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of BLDR

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.