BUILDERS FIRSTSOURCE INC (BLDR)
US12008R1077 - Common Stock
We assign a fundamental rating of 5 out of 10 to BLDR. BLDR was compared to 39 industry peers in the Building Products industry. BLDR has an excellent profitability rating, but there are some minor concerns on its financial health. BLDR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BLDR was profitable.
In the past year BLDR had a positive cash flow from operations.
Each year in the past 5 years BLDR has been profitable.
In the past 5 years BLDR always reported a positive cash flow from operatings.
1.2 Ratios
BLDR's Return On Assets of 11.37% is fine compared to the rest of the industry. BLDR outperforms 64.10% of its industry peers.
BLDR's Return On Equity of 27.85% is fine compared to the rest of the industry. BLDR outperforms 79.49% of its industry peers.
BLDR has a Return On Invested Capital of 15.42%. This is in the better half of the industry: BLDR outperforms 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLDR is significantly above the industry average of 13.64%.
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
BLDR has a Profit Margin (7.40%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BLDR has grown nicely.
Looking at the Operating Margin, with a value of 10.65%, BLDR is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of BLDR has grown nicely.
BLDR has a Gross Margin (33.55%) which is in line with its industry peers.
BLDR's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BLDR is creating value.
BLDR has less shares outstanding than it did 1 year ago.
BLDR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BLDR has a worse debt to assets ratio.
2.2 Solvency
BLDR has an Altman-Z score of 4.15. 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 4.15, BLDR is in line with its industry, outperforming 48.72% of the companies in the same industry.
The Debt to FCF ratio of BLDR is 2.14, which is a good value as it means it would take BLDR, 2.14 years of fcf income to pay off all of its debts.
BLDR has a better Debt to FCF ratio (2.14) than 61.54% of its industry peers.
BLDR has a Debt/Equity ratio of 0.83. This is a neutral value indicating BLDR is somewhat dependend on debt financing.
The Debt to Equity ratio of BLDR (0.83) is worse than 71.79% 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 | 4.15 |
ROIC/WACC1.5
WACC10.28%
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 worse Current ratio (1.77) than 64.10% of its industry peers.
A Quick Ratio of 1.16 indicates that BLDR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.16, BLDR is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| 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.
BLDR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.28% yearly.
BLDR shows a decrease in Revenue. In the last year, the revenue decreased by -3.31%.
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
The Earnings Per Share is expected to decrease by -0.18% on average over the next years.
BLDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y-20.82%
EPS Next 2Y-9.27%
EPS Next 3Y-0.18%
EPS Next 5YN/A
Revenue Next Year-2.61%
Revenue Next 2Y0.97%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.96, which indicates a correct valuation of BLDR.
Based on the Price/Earnings ratio, BLDR is valued a bit cheaper than the industry average as 76.92% 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 28.65.
BLDR is valuated correctly with a Price/Forward Earnings ratio of 14.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 76.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.50. BLDR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLDR is valued a bit cheaper than 74.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BLDR is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.86 | ||
| EV/EBITDA | 10.07 |
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)0.28
EPS Next 2Y-9.27%
EPS Next 3Y-0.18%
5. Dividend
5.1 Amount
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BUILDERS FIRSTSOURCE INC
NYSE:BLDR (11/18/2024, 6:03:45 PM)
After market: 178.3 0 (0%)178.3
+2.02 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 14.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 27.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.65% | ||
| PM (TTM) | 7.4% | ||
| GM | 33.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.7%
EPS 3Y67.96%
EPS 5Y
EPS Q2Q%
EPS Next Y-20.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y25.94%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y