Why BUILDERS FIRSTSOURCE INC (NYSE:BLDR) should be investigated by quality investors.

In this article we will dive into BUILDERS FIRSTSOURCE INC (NYSE:BLDR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BUILDERS FIRSTSOURCE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of BUILDERS FIRSTSOURCE INC

• The 5-year revenue growth of BUILDERS FIRSTSOURCE INC has been remarkable, with 26.43% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 45.28%, BUILDERS FIRSTSOURCE INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• BUILDERS FIRSTSOURCE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.58, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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 67.61% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• BUILDERS FIRSTSOURCE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:BLDR?

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.

Overall BLDR gets a fundamental rating of 6 out of 10. We evaluated BLDR against 44 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making BLDR a very profitable company, without any liquidiy or solvency issues. BLDR is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of BLDR

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.