BUILDERS FIRSTSOURCE INC (BLDR) Stock Fundamental Analysis
NYSE:BLDR - New York Stock Exchange, Inc. - US12008R1077 - Common Stock - Currency: USD
Taking everything into account, BLDR scores 5 out of 10 in our fundamental rating. BLDR was compared to 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
BLDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.37%, BLDR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
BLDR has a Return On Equity of 27.85%. This is in the better half of the industry: BLDR outperforms 80.00% of its industry peers.
The Return On Invested Capital of BLDR (15.42%) is better than 75.00% of its industry peers.
BLDR had an Average Return On Invested Capital over the past 3 years of 24.82%. This is significantly above the industry average of 13.19%.
The last Return On Invested Capital (15.42%) for BLDR is well below the 3 year average (24.82%), which needs to be investigated, but indicates that BLDR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 27.85% | ||
| ROIC | 15.42% |
ROA(3y)18.91%
ROA(5y)14.22%
ROE(3y)41.29%
ROE(5y)35.6%
ROIC(3y)24.82%
ROIC(5y)20.1%
1.3 Margins
Looking at the Profit Margin, with a value of 7.40%, BLDR is in line with its industry, outperforming 42.50% of the companies in the same industry.
BLDR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.65%, BLDR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
BLDR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.55%, BLDR is in line with its industry, outperforming 50.00% 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 | 10.65% | ||
| PM (TTM) | 7.4% | ||
| GM | 33.55% |
OM growth 3Y26.05%
OM growth 5Y21.66%
PM growth 3Y34.92%
PM growth 5Y27.7%
GM growth 3Y10.63%
GM growth 5Y7.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BLDR is creating value.
Compared to 1 year ago, BLDR has less shares outstanding
The number of shares outstanding for BLDR has been increased compared to 5 years ago.
BLDR has a worse debt/assets ratio than last year.
2.2 Solvency
BLDR has an Altman-Z score of 4.05. This indicates that BLDR is financially healthy and has little risk of bankruptcy at the moment.
BLDR has a Altman-Z score (4.05) which is in line with its industry peers.
BLDR has a debt to FCF ratio of 2.14. This is a good value and a sign of high solvency as BLDR would need 2.14 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.14, BLDR is doing good in the industry, outperforming 65.00% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that BLDR is somewhat dependend on debt financing.
BLDR has a Debt to Equity ratio of 0.83. This is in the lower half of the industry: BLDR underperforms 70.00% of its industry peers.
Although BLDR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.41
WACC10.9%
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's Current ratio of 1.77 is on the low side compared to the rest of the industry. BLDR is outperformed by 62.50% of its industry peers.
BLDR has a Quick Ratio of 1.16. This is a normal value and indicates that BLDR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BLDR (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for BLDR have decreased strongly by -10.70% 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 50.28% on average per year.
The Revenue has decreased by -3.31% in the past year.
The Revenue has been growing by 17.22% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.7%
EPS 3Y67.96%
EPS 5Y50.28%
EPS Q2Q%-27.59%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y25.94%
Revenue growth 5Y17.22%
Sales Q2Q%-6.66%
3.2 Future
Based on estimates for the next years, BLDR will show a decrease in Earnings Per Share. The EPS will decrease by -0.12% on average per year.
Based on estimates for the next years, BLDR will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y-20.18%
EPS Next 2Y-10.99%
EPS Next 3Y-0.12%
EPS Next 5YN/A
Revenue Next Year-3.11%
Revenue Next 2Y0.86%
Revenue Next 3Y3.18%
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
With a Price/Earnings ratio of 13.46, BLDR is valued correctly.
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.
BLDR is valuated cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.82, BLDR is valued correctly.
Based on the Price/Forward Earnings ratio, BLDR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.47, BLDR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BLDR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | 9.61 |
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)0.27
EPS Next 2Y-10.99%
EPS Next 3Y-0.12%
5. Dividend
5.1 Amount
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BUILDERS FIRSTSOURCE INC
NYSE:BLDR (1/27/2025, 11:31:42 AM)
171.895
+5.14 (+3.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change0.41%
Ins Owners1.76%
Ins Owner Change-0.53%
Market Cap19.78B
Analysts81.67
Price Target215.82 (25.55%)
Short Float %2.8%
Short Ratio2.29
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)7.3%
Min EPS beat(2)1.07%
Max EPS beat(2)13.53%
EPS beat(4)4
Avg EPS beat(4)16.18%
Min EPS beat(4)1.07%
Max EPS beat(4)37.05%
EPS beat(8)8
Avg EPS beat(8)31.68%
EPS beat(12)12
Avg EPS beat(12)45.29%
EPS beat(16)16
Avg EPS beat(16)49.63%
Revenue beat(2)0
Avg Revenue beat(2)-4.66%
Min Revenue beat(2)-6.77%
Max Revenue beat(2)-2.55%
Revenue beat(4)1
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-6.77%
Max Revenue beat(4)1%
Revenue beat(8)4
Avg Revenue beat(8)-0.5%
Revenue beat(12)8
Avg Revenue beat(12)4.36%
Revenue beat(16)11
Avg Revenue beat(16)4.77%
PT rev (1m)0%
PT rev (3m)3.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.1%
EPS NY rev (1m)0%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.96%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 14.82 | ||
| P/S | 1.18 | ||
| P/FCF | 11.43 | ||
| P/OCF | 9.37 | ||
| P/B | 4.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.61 |
EPS(TTM)12.77
EY7.43%
EPS(NY)11.6
Fwd EY6.75%
FCF(TTM)15.04
FCFY8.75%
OCF(TTM)18.34
OCFY10.67%
SpS145.39
BVpS38.64
TBVpS-2.98
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 27.85% | ||
| ROCE | 19.94% | ||
| ROIC | 15.42% | ||
| ROICexc | 16% | ||
| ROICexgc | 36.08% | ||
| OM | 10.65% | ||
| PM (TTM) | 7.4% | ||
| GM | 33.55% | ||
| FCFM | 10.34% |
ROA(3y)18.91%
ROA(5y)14.22%
ROE(3y)41.29%
ROE(5y)35.6%
ROIC(3y)24.82%
ROIC(5y)20.1%
ROICexc(3y)25%
ROICexc(5y)20.66%
ROICexgc(3y)58.51%
ROICexgc(5y)43.85%
ROCE(3y)32.1%
ROCE(5y)26%
ROICexcg growth 3Y23.99%
ROICexcg growth 5Y16.43%
ROICexc growth 3Y7.69%
ROICexc growth 5Y8.56%
OM growth 3Y26.05%
OM growth 5Y21.66%
PM growth 3Y34.92%
PM growth 5Y27.7%
GM growth 3Y10.63%
GM growth 5Y7.15%
F-Score5
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.14 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 67.06% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 9.07 | ||
| Cash Conversion | 89.86% | ||
| Profit Quality | 139.72% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.05 |
F-Score5
WACC10.9%
ROIC/WACC1.41
Cap/Depr(3y)65.13%
Cap/Depr(5y)80.89%
Cap/Sales(3y)1.81%
Cap/Sales(5y)1.66%
Profit Quality(3y)108.41%
Profit Quality(5y)109.71%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.7%
EPS 3Y67.96%
EPS 5Y50.28%
EPS Q2Q%-27.59%
EPS Next Y-20.18%
EPS Next 2Y-10.99%
EPS Next 3Y-0.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y25.94%
Revenue growth 5Y17.22%
Sales Q2Q%-6.66%
Revenue Next Year-3.11%
Revenue Next 2Y0.86%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y-19.46%
EBIT growth 3Y58.75%
EBIT growth 5Y42.61%
EBIT Next Year0.26%
EBIT Next 3Y4.62%
EBIT Next 5YN/A
FCF growth 1Y-45.85%
FCF growth 3Y131.26%
FCF growth 5Y58.78%
OCF growth 1Y-39.14%
OCF growth 3Y107%
OCF growth 5Y52.16%