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BUILDERS FIRSTSOURCE INC (BLDR) Stock Fundamental Analysis

NYSE:BLDR - New York Stock Exchange, Inc. - US12008R1077 - Common Stock - Currency: USD

142.88  +2.1 (+1.49%)

Fundamental Rating

5

BLDR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Building Products industry. While BLDR has a great profitability rating, there are some minor concerns on its financial health. BLDR has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year BLDR was profitable.
BLDR had a positive operating cash flow in the past year.
BLDR had positive earnings in each of the past 5 years.
In the past 5 years BLDR always reported a positive cash flow from operatings.
BLDR Yearly Net Income VS EBIT VS OCF VS FCFBLDR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

1.2 Ratios

Looking at the Return On Assets, with a value of 10.19%, BLDR is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
BLDR's Return On Equity of 25.09% is fine compared to the rest of the industry. BLDR outperforms 75.00% of its industry peers.
With a decent Return On Invested Capital value of 14.07%, BLDR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BLDR is significantly above the industry average of 13.16%.
The 3 year average ROIC (22.36%) for BLDR is well above the current ROIC(14.07%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 10.19%
ROE 25.09%
ROIC 14.07%
ROA(3y)16.93%
ROA(5y)14.89%
ROE(3y)37.68%
ROE(5y)35.24%
ROIC(3y)22.36%
ROIC(5y)20.5%
BLDR Yearly ROA, ROE, ROICBLDR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

1.3 Margins

The Profit Margin of BLDR (6.57%) is worse than 60.00% of its industry peers.
BLDR's Profit Margin has improved in the last couple of years.
The Operating Margin of BLDR (9.73%) is worse than 65.00% of its industry peers.
BLDR's Operating Margin has improved in the last couple of years.
BLDR's Gross Margin of 32.82% is in line compared to the rest of the industry. BLDR outperforms 45.00% of its industry peers.
In the last couple of years the Gross Margin of BLDR has grown nicely.
Industry RankSector Rank
OM 9.73%
PM (TTM) 6.57%
GM 32.82%
OM growth 3Y-6.99%
OM growth 5Y12.55%
PM growth 3Y-8.82%
PM growth 5Y16.6%
GM growth 3Y3.73%
GM growth 5Y3.86%
BLDR Yearly Profit, Operating, Gross MarginsBLDR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BLDR is creating value.
Compared to 1 year ago, BLDR has less shares outstanding
BLDR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BLDR has a worse debt to assets ratio.
BLDR Yearly Shares OutstandingBLDR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
BLDR Yearly Total Debt VS Total AssetsBLDR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

BLDR has an Altman-Z score of 3.75. This indicates that BLDR is financially healthy and has little risk of bankruptcy at the moment.
BLDR has a Altman-Z score of 3.75. This is comparable to the rest of the industry: BLDR outperforms 47.50% of its industry peers.
The Debt to FCF ratio of BLDR is 2.48, which is a good value as it means it would take BLDR, 2.48 years of fcf income to pay off all of its debts.
BLDR's Debt to FCF ratio of 2.48 is fine compared to the rest of the industry. BLDR outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BLDR is somewhat dependend on debt financing.
The Debt to Equity ratio of BLDR (0.86) is worse than 72.50% of its industry peers.
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.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 2.48
Altman-Z 3.75
ROIC/WACC1.37
WACC10.28%
BLDR Yearly LT Debt VS Equity VS FCFBLDR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

BLDR has a Current Ratio of 1.77. This is a normal value and indicates that BLDR is financially healthy and should not expect problems in meeting its short term obligations.
BLDR has a Current ratio of 1.77. This is in the lower half of the industry: BLDR underperforms 65.00% of its industry peers.
A Quick Ratio of 1.09 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a Quick ratio of 1.09. This is in the lower half of the industry: BLDR underperforms 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.09
BLDR Yearly Current Assets VS Current LiabilitesBLDR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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4

3. Growth

3.1 Past

The earnings per share for BLDR have decreased strongly by -21.24% in the last year.
Measured over the past years, BLDR shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.71% on average per year.
The Revenue has decreased by -4.08% in the past year.
The Revenue has been growing by 17.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-21.24%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-34.93%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-7.96%

3.2 Future

Based on estimates for the next years, BLDR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.22% on average per year.
The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y-1.25%
EPS Next 2Y9.49%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue Next Year5.13%
Revenue Next 2Y6.21%
Revenue Next 3Y5.79%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
BLDR Yearly Revenue VS EstimatesBLDR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
BLDR Yearly EPS VS EstimatesBLDR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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6

4. Valuation

4.1 Price/Earnings Ratio

BLDR is valuated correctly with a Price/Earnings ratio of 12.39.
BLDR's Price/Earnings ratio is a bit cheaper when compared to the industry. BLDR is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BLDR to the average of the S&P500 Index (29.43), we can say BLDR is valued rather cheaply.
A Price/Forward Earnings ratio of 12.55 indicates a correct valuation of BLDR.
BLDR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BLDR is cheaper than 77.50% of the companies in the same industry.
BLDR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.65.
Industry RankSector Rank
PE 12.39
Fwd PE 12.55
BLDR Price Earnings VS Forward Price EarningsBLDR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

77.50% of the companies in the same industry are more expensive than BLDR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BLDR indicates a rather cheap valuation: BLDR is cheaper than 87.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.02
EV/EBITDA 9.16
BLDR Per share dataBLDR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

BLDR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y9.49%
EPS Next 3Y11.22%

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0

5. Dividend

5.1 Amount

No dividends for BLDR!.
Industry RankSector Rank
Dividend Yield N/A

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BUILDERS FIRSTSOURCE INC

NYSE:BLDR (2/26/2025, 3:44:08 PM)

142.88

+2.1 (+1.49%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)05-05 2025-05-05/bmo
Inst Owners96.13%
Inst Owner Change-93.48%
Ins Owners1.8%
Ins Owner Change0.02%
Market Cap16.44B
Analysts82.31
Price Target201.97 (41.36%)
Short Float %3.57%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.68%
Min EPS beat(2)1.07%
Max EPS beat(2)6.29%
EPS beat(4)4
Avg EPS beat(4)8.49%
Min EPS beat(4)1.07%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)28.29%
EPS beat(12)12
Avg EPS beat(12)42.26%
EPS beat(16)16
Avg EPS beat(16)47.68%
Revenue beat(2)0
Avg Revenue beat(2)-5.38%
Min Revenue beat(2)-6.77%
Max Revenue beat(2)-3.99%
Revenue beat(4)0
Avg Revenue beat(4)-3.38%
Min Revenue beat(4)-6.77%
Max Revenue beat(4)-0.22%
Revenue beat(8)3
Avg Revenue beat(8)-1.04%
Revenue beat(12)7
Avg Revenue beat(12)3.54%
Revenue beat(16)11
Avg Revenue beat(16)4.75%
PT rev (1m)-6.42%
PT rev (3m)-6.42%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 12.39
Fwd PE 12.55
P/S 1
P/FCF 11.02
P/OCF 8.78
P/B 3.83
P/tB N/A
EV/EBITDA 9.16
EPS(TTM)11.53
EY8.07%
EPS(NY)11.39
Fwd EY7.97%
FCF(TTM)12.97
FCFY9.07%
OCF(TTM)16.27
OCFY11.39%
SpS142.51
BVpS37.33
TBVpS-4.22
PEG (NY)N/A
PEG (5Y)0.3
Profitability
Industry RankSector Rank
ROA 10.19%
ROE 25.09%
ROCE 18.12%
ROIC 14.07%
ROICexc 14.32%
ROICexgc 32.01%
OM 9.73%
PM (TTM) 6.57%
GM 32.82%
FCFM 9.1%
ROA(3y)16.93%
ROA(5y)14.89%
ROE(3y)37.68%
ROE(5y)35.24%
ROIC(3y)22.36%
ROIC(5y)20.5%
ROICexc(3y)22.6%
ROICexc(5y)21.09%
ROICexgc(3y)52.47%
ROICexgc(5y)46.44%
ROCE(3y)28.8%
ROCE(5y)26.39%
ROICexcg growth 3Y-14.33%
ROICexcg growth 5Y9.79%
ROICexc growth 3Y-13.16%
ROICexc growth 5Y2.57%
OM growth 3Y-6.99%
OM growth 5Y12.55%
PM growth 3Y-8.82%
PM growth 5Y16.6%
GM growth 3Y3.73%
GM growth 5Y3.86%
F-Score4
Asset Turnover1.55
Health
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 2.48
Debt/EBITDA 1.72
Cap/Depr 67.73%
Cap/Sales 2.32%
Interest Coverage 8.46
Cash Conversion 86.81%
Profit Quality 138.43%
Current Ratio 1.77
Quick Ratio 1.09
Altman-Z 3.75
F-Score4
WACC10.28%
ROIC/WACC1.37
Cap/Depr(3y)73.83%
Cap/Depr(5y)71.85%
Cap/Sales(3y)2.2%
Cap/Sales(5y)1.81%
Profit Quality(3y)125.27%
Profit Quality(5y)102.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.24%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-34.93%
EPS Next Y-1.25%
EPS Next 2Y9.49%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-7.96%
Revenue Next Year5.13%
Revenue Next 2Y6.21%
Revenue Next 3Y5.79%
Revenue Next 5YN/A
EBIT growth 1Y-26.7%
EBIT growth 3Y-12.79%
EBIT growth 5Y32.41%
EBIT Next Year42.64%
EBIT Next 3Y20.1%
EBIT Next 5YN/A
FCF growth 1Y-18.49%
FCF growth 3Y-0.52%
FCF growth 5Y30.71%
OCF growth 1Y-18.82%
OCF growth 3Y2.41%
OCF growth 5Y30.02%