BEACON ROOFING SUPPLY INC (BECN) Stock Fundamental Analysis
NASDAQ:BECN - Nasdaq - US0736851090 - Common Stock
Taking everything into account, BECN scores 3 out of 10 in our fundamental rating. BECN was compared to 48 industry peers in the Trading Companies & Distributors industry. While BECN is still in line with the averages on profitability rating, there are concerns on its financial health. BECN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BECN had positive earnings in the past year.
BECN had a positive operating cash flow in the past year.
In the past 5 years BECN reported 4 times negative net income.
Each year in the past 5 years BECN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.03%, BECN is in line with its industry, outperforming 57.45% of the companies in the same industry.
BECN has a better Return On Equity (19.68%) than 78.72% of its industry peers.
BECN has a Return On Invested Capital of 9.07%. This is in the better half of the industry: BECN outperforms 63.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BECN is in line with the industry average of 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 19.68% | ||
| ROIC | 9.07% |
ROA(3y)1.85%
ROA(5y)0.7%
ROE(3y)4.7%
ROE(5y)1.54%
ROIC(3y)10.31%
ROIC(5y)6.68%
1.3 Margins
BECN has a Profit Margin (3.87%) which is in line with its industry peers.
Looking at the Operating Margin, with a value of 6.95%, BECN is in line with its industry, outperforming 46.81% of the companies in the same industry.
BECN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.67%, BECN is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
BECN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.95% | ||
| PM (TTM) | 3.87% | ||
| GM | 25.67% |
OM growth 3Y136.34%
OM growth 5Y19.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.28%
GM growth 5Y0.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BECN is destroying value.
BECN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BECN has less shares outstanding
The debt/assets ratio for BECN is higher compared to a year ago.
2.2 Solvency
BECN has an Altman-Z score of 2.80. This is not the best score and indicates that BECN is in the grey zone with still only limited risk for bankruptcy at the moment.
BECN has a Altman-Z score (2.80) which is in line with its industry peers.
BECN has a debt to FCF ratio of 15.66. This is a negative value and a sign of low solvency as BECN would need 15.66 years to pay back of all of its debts.
BECN has a Debt to FCF ratio (15.66) which is in line with its industry peers.
A Debt/Equity ratio of 1.60 is on the high side and indicates that BECN has dependencies on debt financing.
The Debt to Equity ratio of BECN (1.60) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 15.66 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.82
WACC11.09%
2.3 Liquidity
BECN has a Current Ratio of 1.91. This is a normal value and indicates that BECN is financially healthy and should not expect problems in meeting its short term obligations.
BECN has a Current ratio (1.91) which is comparable to the rest of the industry.
A Quick Ratio of 1.14 indicates that BECN should not have too much problems paying its short term obligations.
The Quick ratio of BECN (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for BECN have decreased by -4.11% in the last year.
The Earnings Per Share has been growing by 24.96% on average over the past years. This is a very strong growth
The Revenue has grown by 9.89% in the past year. This is quite good.
BECN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.28% yearly.
EPS 1Y (TTM)-4.11%
EPS 3Y45.72%
EPS 5Y24.96%
EPS Q2Q%-1.41%
Revenue 1Y (TTM)9.89%
Revenue growth 3Y15.51%
Revenue growth 5Y7.28%
Sales Q2Q%7.29%
3.2 Future
BECN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.20% yearly.
Based on estimates for the next years, BECN will show a small growth in Revenue. The Revenue will grow by 5.21% on average per year.
EPS Next Y-6.92%
EPS Next 2Y2.05%
EPS Next 3Y5.2%
EPS Next 5YN/A
Revenue Next Year7.79%
Revenue Next 2Y6.05%
Revenue Next 3Y5.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BECN is valuated correctly with a Price/Earnings ratio of 16.03.
Based on the Price/Earnings ratio, BECN is valued a bit cheaper than 65.96% of the companies in the same industry.
BECN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 14.18 indicates a correct valuation of BECN.
Based on the Price/Forward Earnings ratio, BECN is valued a bit cheaper than 68.09% of the companies in the same industry.
BECN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BECN.
BECN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.51 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y2.05%
EPS Next 3Y5.2%
5. Dividend
5.1 Amount
No dividends for BECN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BEACON ROOFING SUPPLY INC
NASDAQ:BECN (1/21/2025, 8:00:00 PM)
After market: 116.05 0 (0%)116.05
+0.13 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.52%
Inst Owner Change-0.47%
Ins Owners0.53%
Ins Owner Change-1.28%
Market Cap7.18B
Analysts78
Price Target117.99 (1.67%)
Short Float %2.29%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.3
Dividend Growth(5Y)9.14%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.68%
Min EPS beat(2)-18.4%
Max EPS beat(2)-2.96%
EPS beat(4)2
Avg EPS beat(4)3.98%
Min EPS beat(4)-18.4%
Max EPS beat(4)36.26%
EPS beat(8)6
Avg EPS beat(8)6.82%
EPS beat(12)10
Avg EPS beat(12)15.59%
EPS beat(16)13
Avg EPS beat(16)177.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)4
Avg Revenue beat(12)0.08%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)0%
PT rev (3m)3.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 14.18 | ||
| P/S | 0.74 | ||
| P/FCF | 36.51 | ||
| P/OCF | 22.33 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.77 |
EPS(TTM)7.24
EY6.24%
EPS(NY)8.19
Fwd EY7.05%
FCF(TTM)3.18
FCFY2.74%
OCF(TTM)5.2
OCFY4.48%
SpS156.07
BVpS30.66
TBVpS-11.22
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 19.68% | ||
| ROCE | 12.24% | ||
| ROIC | 9.07% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 17.61% | ||
| OM | 6.95% | ||
| PM (TTM) | 3.87% | ||
| GM | 25.67% | ||
| FCFM | 2.04% |
ROA(3y)1.85%
ROA(5y)0.7%
ROE(3y)4.7%
ROE(5y)1.54%
ROIC(3y)10.31%
ROIC(5y)6.68%
ROICexc(3y)10.63%
ROICexc(5y)6.89%
ROICexgc(3y)22.77%
ROICexgc(5y)15.57%
ROCE(3y)13.92%
ROCE(5y)9.01%
ROICexcg growth 3Y135.38%
ROICexcg growth 5Y10.48%
ROICexc growth 3Y175.88%
ROICexc growth 5Y30.04%
OM growth 3Y136.34%
OM growth 5Y19.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.28%
GM growth 5Y0.69%
F-Score5
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 15.66 | ||
| Debt/EBITDA | 3.5 | ||
| Cap/Depr | 64.1% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.14% | ||
| Profit Quality | 52.68% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.8 |
F-Score5
WACC11.09%
ROIC/WACC0.82
Cap/Depr(3y)54.77%
Cap/Depr(5y)39.44%
Cap/Sales(3y)1.14%
Cap/Sales(5y)1.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.11%
EPS 3Y45.72%
EPS 5Y24.96%
EPS Q2Q%-1.41%
EPS Next Y-6.92%
EPS Next 2Y2.05%
EPS Next 3Y5.2%
EPS Next 5YN/A
Revenue 1Y (TTM)9.89%
Revenue growth 3Y15.51%
Revenue growth 5Y7.28%
Sales Q2Q%7.29%
Revenue Next Year7.79%
Revenue Next 2Y6.05%
Revenue Next 3Y5.21%
Revenue Next 5YN/A
EBIT growth 1Y-0.58%
EBIT growth 3Y173.01%
EBIT growth 5Y28.33%
EBIT Next Year16.73%
EBIT Next 3Y9.68%
EBIT Next 5YN/A
FCF growth 1Y373.98%
FCF growth 3Y15.57%
FCF growth 5Y6.15%
OCF growth 1Y509.28%
OCF growth 3Y18.01%
OCF growth 5Y7.87%