BUILDERS FIRSTSOURCE INC (BLDR) Stock Fundamental Analysis
NYSE:BLDR - New York Stock Exchange, Inc. - US12008R1077 - Common Stock - Currency: USD
BLDR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. BLDR scores excellent on profitability, but there are some minor concerns on its financial health. BLDR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BLDR had positive earnings in the past year.
In the past year BLDR had a positive cash flow from operations.
Each year in the past 5 years BLDR has been profitable.
Each year in the past 5 years BLDR had a positive operating cash flow.
1.2 Ratios
BLDR has a Return On Assets (8.00%) which is in line with its industry peers.
The Return On Equity of BLDR (20.93%) is better than 68.29% of its industry peers.
BLDR's Return On Invested Capital of 11.32% is fine compared to the rest of the industry. BLDR outperforms 60.98% of its industry peers.
BLDR had an Average Return On Invested Capital over the past 3 years of 22.36%. This is significantly above the industry average of 12.81%.
The last Return On Invested Capital (11.32%) for BLDR is well below the 3 year average (22.36%), which needs to be investigated, but indicates that BLDR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 20.93% | ||
| ROIC | 11.32% |
ROA(3y)16.93%
ROA(5y)14.89%
ROE(3y)37.68%
ROE(5y)35.24%
ROIC(3y)22.36%
ROIC(5y)20.5%
1.3 Margins
BLDR's Profit Margin of 5.66% is on the low side compared to the rest of the industry. BLDR is outperformed by 60.98% of its industry peers.
In the last couple of years the Profit Margin of BLDR has grown nicely.
With a Operating Margin value of 8.70%, BLDR is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BLDR has grown nicely.
Looking at the Gross Margin, with a value of 32.16%, BLDR is in line with its industry, outperforming 51.22% of the companies in the same industry.
BLDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.7% | ||
| PM (TTM) | 5.66% | ||
| GM | 32.16% |
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%
2. Health
2.1 Basic Checks
BLDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for BLDR has been reduced compared to 1 year ago.
Compared to 5 years ago, BLDR has less shares outstanding
Compared to 1 year ago, BLDR has a worse debt to assets ratio.
2.2 Solvency
BLDR has an Altman-Z score of 3.17. This indicates that BLDR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.17, BLDR is in line with its industry, outperforming 46.34% of the companies in the same industry.
BLDR has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as BLDR would need 3.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.44, BLDR is in line with its industry, outperforming 58.54% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that BLDR has dependencies on debt financing.
BLDR has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: BLDR underperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.14
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.82 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a Current ratio of 1.82. This is comparable to the rest of the industry: BLDR outperforms 43.90% of its industry peers.
A Quick Ratio of 1.07 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a worse Quick ratio (1.07) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for BLDR have decreased strongly by -27.49% in the last year.
The Earnings Per Share has been growing by 40.71% on average over the past years. This is a very strong growth
Looking at the last year, BLDR shows a decrease in Revenue. The Revenue has decreased by -5.49% in the last year.
Measured over the past years, BLDR shows a quite strong growth in Revenue. The Revenue has been growing by 17.64% on average per year.
EPS 1Y (TTM)-27.49%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-43.02%
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-6.01%
3.2 Future
Based on estimates for the next years, BLDR will show a small growth in Earnings Per Share. The EPS will grow by 0.87% on average per year.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y-28.51%
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
EPS Next 5YN/A
Revenue Next Year-0.98%
Revenue Next 2Y0.89%
Revenue Next 3Y3.36%
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
A Price/Earnings ratio of 12.13 indicates a correct valuation of BLDR.
Based on the Price/Earnings ratio, BLDR is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
BLDR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 13.06, the valuation of BLDR can be described as correct.
73.17% of the companies in the same industry are more expensive than BLDR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BLDR to the average of the S&P500 Index (36.06), we can say BLDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLDR is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
BLDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BLDR is cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 9.26 |
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 2Y-8.51%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
No dividends for BLDR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
126
+0.12 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change0%
Ins Owners2.47%
Ins Owner Change4.82%
Market Cap13.92B
Analysts80
Price Target144.88 (14.98%)
Short Float %5.74%
Short Ratio2.63
Dividend
| Industry Rank | Sector 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)10.41%
Min EPS beat(2)8.35%
Max EPS beat(2)12.47%
EPS beat(4)4
Avg EPS beat(4)8.86%
Min EPS beat(4)1.07%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)18.65%
EPS beat(12)12
Avg EPS beat(12)35.73%
EPS beat(16)16
Avg EPS beat(16)45.37%
Revenue beat(2)0
Avg Revenue beat(2)-9.74%
Min Revenue beat(2)-17.56%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-7.2%
Min Revenue beat(4)-17.56%
Max Revenue beat(4)-1.92%
Revenue beat(8)2
Avg Revenue beat(8)-3.78%
Revenue beat(12)6
Avg Revenue beat(12)0.5%
Revenue beat(16)10
Avg Revenue beat(16)3.26%
PT rev (1m)0%
PT rev (3m)-19.8%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-18%
EPS NY rev (1m)-1.64%
EPS NY rev (3m)-15.56%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 13.06 | ||
| P/S | 0.86 | ||
| P/FCF | 10.71 | ||
| P/OCF | 8.25 | ||
| P/B | 3.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.26 |
EPS(TTM)10.39
EY8.25%
EPS(NY)9.65
Fwd EY7.66%
FCF(TTM)11.77
FCFY9.34%
OCF(TTM)15.27
OCFY12.12%
SpS146.29
BVpS39.58
TBVpS-8.26
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 20.93% | ||
| ROCE | 14.58% | ||
| ROIC | 11.32% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 25.73% | ||
| OM | 8.7% | ||
| PM (TTM) | 5.66% | ||
| GM | 32.16% | ||
| FCFM | 8.04% |
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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 68.36% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 85.56% | ||
| Profit Quality | 142.07% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.17 |
F-Score4
WACC9.97%
ROIC/WACC1.14
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)-27.49%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-43.02%
EPS Next Y-28.51%
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-6.01%
Revenue Next Year-0.98%
Revenue Next 2Y0.89%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y-32.49%
EBIT growth 3Y-12.79%
EBIT growth 5Y32.41%
EBIT Next Year14.05%
EBIT Next 3Y12.87%
EBIT Next 5YN/A
FCF growth 1Y-64.65%
FCF growth 3Y-0.52%
FCF growth 5Y30.71%
OCF growth 1Y-58.57%
OCF growth 3Y2.41%
OCF growth 5Y30.02%