Reasonable Growth, Debt Levels, and a High ROIC Make BUILDERS FIRSTSOURCE INC (NYSE:BLDR) Appealing to Quality Investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BUILDERS FIRSTSOURCE INC (NYSE:BLDR) is suited for quality investing. Investors should of course do their own research, but we spotted BUILDERS FIRSTSOURCE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:BLDR may be interesting for quality investors.

• BUILDERS FIRSTSOURCE INC has demonstrated significant revenue growth over the past 5 years, with a 26.43% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• BUILDERS FIRSTSOURCE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 45.28% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of BUILDERS FIRSTSOURCE INC stands at 1.58, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of BUILDERS FIRSTSOURCE INC stands at 104.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• BUILDERS FIRSTSOURCE INC has consistently achieved strong EBIT growth over the past 5 years, with a 67.6% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of BUILDERS FIRSTSOURCE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

BLDR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 44 industry peers in the Building Products industry. BLDR gets an excellent profitability rating and is at the same time showing great financial health properties. BLDR is cheap, but on the other hand it scores bad on growth. With these ratings, BLDR could be worth investigating further for value investing!.

Check the latest full fundamental report of BLDR for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.