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
With a decent Return On Assets value of 10.19%, BLDR is doing good in the industry, outperforming 63.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.09%, BLDR is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
BLDR's Return On Invested Capital of 14.07% is fine compared to the rest of the industry. BLDR outperforms 73.17% 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 12.93%.
The last Return On Invested Capital (14.07%) 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 | 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%
1.3 Margins
Looking at the Profit Margin, with a value of 6.57%, BLDR is in line with its industry, outperforming 41.46% of the companies in the same industry.
In the last couple of years the Profit Margin of BLDR has grown nicely.
BLDR's Operating Margin of 9.73% is on the low side compared to the rest of the industry. BLDR is outperformed by 63.41% of its industry peers.
BLDR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.82%, BLDR is in line with its industry, outperforming 48.78% of the companies in the same industry.
In the last couple of years the Gross Margin of BLDR has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BLDR is creating value.
The number of shares outstanding for BLDR has been reduced compared to 1 year ago.
BLDR has less shares outstanding than it did 5 years ago.
BLDR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.47 indicates that BLDR is not in any danger for bankruptcy at the moment.
BLDR has a Altman-Z score (3.47) which is comparable to the rest of the industry.
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 has a better Debt to FCF ratio (2.48) than 65.85% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BLDR is somewhat dependend on debt financing.
BLDR has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: BLDR underperforms 70.73% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.39
WACC10.1%
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 60.98% of its industry peers.
A Quick Ratio of 1.09 indicates that BLDR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, BLDR is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
BLDR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.24%.
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.
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)-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%-20.97%
3.2 Future
BLDR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.15% yearly.
BLDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y-15.34%
EPS Next 2Y0.77%
EPS Next 3Y8.15%
EPS Next 5YN/A
Revenue Next Year1.74%
Revenue Next 2Y3.43%
Revenue Next 3Y3.96%
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
BLDR is valuated reasonably with a Price/Earnings ratio of 10.14.
BLDR's Price/Earnings ratio is rather cheap when compared to the industry. BLDR is cheaper than 82.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of BLDR to the average of the S&P500 Index (28.29), we can say BLDR is valued rather cheaply.
BLDR is valuated reasonably with a Price/Forward Earnings ratio of 11.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 73.17% of the companies listed in the same industry.
BLDR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
78.05% of the companies in the same industry are more expensive than BLDR, based on the Enterprise Value to EBITDA ratio.
87.80% of the companies in the same industry are more expensive than BLDR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
The decent profitability rating of BLDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y0.77%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.94
+3.88 (+3.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change0%
Ins Owners1.8%
Ins Owner Change0.37%
Market Cap13.29B
Analysts82.4
Price Target180.66 (54.49%)
Short Float %3.73%
Short Ratio2.42
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)3.88%
Min EPS beat(2)1.07%
Max EPS beat(2)6.68%
EPS beat(4)4
Avg EPS beat(4)8.59%
Min EPS beat(4)1.07%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)28.33%
EPS beat(12)12
Avg EPS beat(12)42.29%
EPS beat(16)16
Avg EPS beat(16)47.71%
Revenue beat(2)0
Avg Revenue beat(2)-12.17%
Min Revenue beat(2)-17.56%
Max Revenue beat(2)-6.77%
Revenue beat(4)0
Avg Revenue beat(4)-6.78%
Min Revenue beat(4)-17.56%
Max Revenue beat(4)-0.22%
Revenue beat(8)3
Avg Revenue beat(8)-2.73%
Revenue beat(12)7
Avg Revenue beat(12)2.41%
Revenue beat(16)11
Avg Revenue beat(16)3.9%
PT rev (1m)-0.3%
PT rev (3m)-16.29%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-34.83%
EPS NY rev (1m)-14.27%
EPS NY rev (3m)-15.85%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-6.6%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.81 | ||
| P/FCF | 8.9 | ||
| P/OCF | 7.09 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.81 |
EPS(TTM)11.53
EY9.86%
EPS(NY)9.76
Fwd EY8.35%
FCF(TTM)13.13
FCFY11.23%
OCF(TTM)16.48
OCFY14.09%
SpS144.35
BVpS37.81
TBVpS-4.27
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.47 |
F-Score4
WACC10.1%
ROIC/WACC1.39
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-15.34%
EPS Next 2Y0.77%
EPS Next 3Y8.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-20.97%
Revenue Next Year1.74%
Revenue Next 2Y3.43%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
EBIT growth 1Y-26.7%
EBIT growth 3Y-12.79%
EBIT growth 5Y32.41%
EBIT Next Year31.19%
EBIT Next 3Y16.48%
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%