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Examining the Quality Attributes of NYSE:BLDR.

By Mill Chart

Last update: Sep 17, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BUILDERS FIRSTSOURCE INC (NYSE:BLDR) is suited for quality investing. Investors should of course do their own research, but we spotted BUILDERS FIRSTSOURCE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Key Considerations for Quality Investors.

  • BUILDERS FIRSTSOURCE INC has achieved substantial revenue growth over the past 5 years, with a 17.22% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 38.76%, BUILDERS FIRSTSOURCE INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • The Debt/Free Cash Flow Ratio of BUILDERS FIRSTSOURCE INC stands at 2.37, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • BUILDERS FIRSTSOURCE INC demonstrates consistent Profit Quality over the past 5 years, with a strong 110.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • BUILDERS FIRSTSOURCE INC has consistently achieved strong EBIT growth over the past 5 years, with a 42.61% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • BUILDERS FIRSTSOURCE INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NYSE:BLDR?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to BLDR. BLDR was compared to 40 industry peers in the Building Products industry. BLDR has an excellent profitability rating, but there are some minor concerns on its financial health. BLDR has a correct valuation and a medium growth rate.

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.

Keep in mind

This article should in no way be interpreted as advice. 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.

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