124.17 USD
-0.02 (-0.02%)
At close: Apr 28, 2025
124.22 USD
+0.05 (+0.04%)
After Hours: 4/28/2025, 8:00:00 PM
BECN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of BECN get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, BECN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- BECN had positive earnings in the past year.
- BECN had a positive operating cash flow in the past year.
- In multiple years BECN reported negative net income over the last 5 years.
- Each year in the past 5 years BECN had a positive operating cash flow.
1.2 Ratios
- BECN's Return On Assets of 5.20% is in line compared to the rest of the industry. BECN outperforms 60.00% of its industry peers.
- Looking at the Return On Equity, with a value of 18.15%, BECN is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.26%, BECN is doing good in the industry, outperforming 72.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BECN is in line with the industry average of 9.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 18.15% | ||
| ROIC | 9.26% |
ROA(3y)4%
ROA(5y)1.85%
ROE(3y)11.83%
ROE(5y)5.48%
ROIC(3y)10.67%
ROIC(5y)8.16%
1.3 Margins
- BECN has a Profit Margin (3.70%) which is in line with its industry peers.
- Looking at the Operating Margin, with a value of 6.82%, BECN is in line with its industry, outperforming 54.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of BECN has grown nicely.
- Looking at the Gross Margin, with a value of 25.66%, BECN is doing worse than 66.00% of the companies in the same industry.
- BECN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | 3.7% | ||
| GM | 25.66% |
OM growth 3Y-0.3%
OM growth 5Y25.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.03%
GM growth 5Y1.51%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BECN is still creating some value.
- The number of shares outstanding for BECN has been reduced compared to 1 year ago.
- Compared to 5 years ago, BECN has less shares outstanding
- Compared to 1 year ago, BECN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.07 indicates that BECN is not in any danger for bankruptcy at the moment.
- BECN has a Altman-Z score of 3.07. This is comparable to the rest of the industry: BECN outperforms 56.00% of its industry peers.
- BECN has a debt to FCF ratio of 9.62. This is a negative value and a sign of low solvency as BECN would need 9.62 years to pay back of all of its debts.
- BECN's Debt to FCF ratio of 9.62 is in line compared to the rest of the industry. BECN outperforms 52.00% of its industry peers.
- BECN has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.39, BECN is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 9.62 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.01
WACC9.2%
2.3 Liquidity
- A Current Ratio of 1.97 indicates that BECN should not have too much problems paying its short term obligations.
- The Current ratio of BECN (1.97) is comparable to the rest of the industry.
- BECN has a Quick Ratio of 1.10. This is a normal value and indicates that BECN is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of BECN (1.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- BECN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.65%.
- Measured over the past years, BECN shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.75% on average per year.
- BECN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.05%.
- BECN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.24% yearly.
EPS 1Y (TTM)-8.65%
EPS 3Y18%
EPS 5Y27.75%
EPS Q2Q%-3.51%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y13.7%
Revenue growth 5Y10.24%
Sales Q2Q%4.53%
3.2 Future
- BECN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
- The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y6.14%
EPS Next 2Y8.64%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year3.12%
Revenue Next 2Y3.02%
Revenue Next 3Y3.17%
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
- BECN is valuated rather expensively with a Price/Earnings ratio of 17.29.
- Based on the Price/Earnings ratio, BECN is valued a bit cheaper than 66.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. BECN is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 16.29, the valuation of BECN can be described as correct.
- BECN's Price/Forward Earnings ratio is in line with the industry average.
- BECN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BECN.
- BECN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.2 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.81
PEG (5Y)0.62
EPS Next 2Y8.64%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
- No dividends for BECN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BEACON ROOFING SUPPLY INC / BECN FAQ
What is the ChartMill fundamental rating of BEACON ROOFING SUPPLY INC (BECN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BECN.
What is the valuation status for BECN stock?
ChartMill assigns a valuation rating of 3 / 10 to BEACON ROOFING SUPPLY INC (BECN). This can be considered as Overvalued.
Can you provide the profitability details for BEACON ROOFING SUPPLY INC?
BEACON ROOFING SUPPLY INC (BECN) has a profitability rating of 5 / 10.
What is the financial health of BEACON ROOFING SUPPLY INC (BECN) stock?
The financial health rating of BEACON ROOFING SUPPLY INC (BECN) is 4 / 10.
How sustainable is the dividend of BEACON ROOFING SUPPLY INC (BECN) stock?
The dividend rating of BEACON ROOFING SUPPLY INC (BECN) is 0 / 10 and the dividend payout ratio is 0%.