Why the quality investor may take a look at BUILDERS FIRSTSOURCE INC (NYSE:BLDR).

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 achieved substantial revenue growth over the past 5 years, with a 26.43% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• 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.
• With a favorable Debt/Free Cash Flow Ratio of 1.58, BUILDERS FIRSTSOURCE INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• BUILDERS FIRSTSOURCE INC demonstrates consistent Profit Quality over the past 5 years, with a strong 104.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• 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.
• 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.

Fundamental Analysis Observations

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

Taking everything into account, BLDR scores 5 out of 10 in our fundamental rating. BLDR was compared to 45 industry peers in the Building Products industry. While BLDR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BLDR is not valued too expensively and it also shows a decent growth rate.

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

More ideas for quality investing can be found on ChartMill 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.