BEACON ROOFING SUPPLY INC (BECN) Stock Fundamental Analysis
NASDAQ:BECN - Nasdaq - US0736851090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BECN. BECN was compared to 48 industry peers in the Trading Companies & Distributors industry. BECN has an average financial health and profitability rating. BECN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BECN was profitable.
In the past year BECN had a positive cash flow from operations.
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 has a Return On Assets (5.20%) which is comparable to the rest of the industry.
BECN has a Return On Equity of 18.15%. This is in the better half of the industry: BECN outperforms 72.00% of its industry peers.
BECN's Return On Invested Capital of 9.26% is fine compared to the rest of the industry. BECN outperforms 72.00% of its industry peers.
BECN had an Average Return On Invested Capital over the past 3 years of 10.67%. This is in line with the industry average of 9.18%.
| 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 of 3.70%. This is comparable to the rest of the industry: BECN outperforms 50.00% of its industry peers.
BECN has a Operating Margin (6.82%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BECN has grown nicely.
The Gross Margin of BECN (25.66%) is worse than 66.00% of its industry peers.
In the last couple of years the Gross Margin of BECN has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BECN is creating some value.
The number of shares outstanding for BECN has been reduced compared to 1 year ago.
The number of shares outstanding for BECN has been reduced compared to 5 years ago.
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 has a Debt to FCF ratio of 9.62. This is comparable 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.
BECN has a Current ratio (1.97) which is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that BECN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, BECN perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for BECN have decreased by -8.65% in the last year.
BECN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.75% yearly.
Looking at the last year, BECN shows a small growth in Revenue. The Revenue has grown by 7.05% in the last year.
Measured over the past years, BECN shows a quite strong growth in Revenue. The Revenue has been growing by 10.24% on average per year.
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.
Based on estimates for the next years, BECN will show a small growth in Revenue. The Revenue will grow by 3.17% on average per year.
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.
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
Based on the Price/Earnings ratio of 17.29, the valuation of BECN can be described as rather expensive.
66.00% of the companies in the same industry are more expensive than BECN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, BECN is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.29 indicates a correct valuation of BECN.
BECN's Price/Forward Earnings is on the same level as the industry average.
BECN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| 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 BECN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.81
PEG (5Y)0.62
EPS Next 2Y8.64%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
BECN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
124.17
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change-7.72%
Ins Owners0.52%
Ins Owner Change-63.71%
Market Cap7.67B
Analysts71.43
Price Target126.15 (1.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2%
Min EPS beat(2)-2.96%
Max EPS beat(2)-1.04%
EPS beat(4)1
Avg EPS beat(4)3.46%
Min EPS beat(4)-18.4%
Max EPS beat(4)36.26%
EPS beat(8)5
Avg EPS beat(8)4.98%
EPS beat(12)9
Avg EPS beat(12)13.44%
EPS beat(16)12
Avg EPS beat(16)170.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)-0.55%
Revenue beat(8)0
Avg Revenue beat(8)-1.98%
Revenue beat(12)3
Avg Revenue beat(12)-0.21%
Revenue beat(16)5
Avg Revenue beat(16)-0.34%
PT rev (1m)-1.03%
PT rev (3m)3.66%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)-142.13%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-7.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.85%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 16.29 | ||
| P/S | 0.79 | ||
| P/FCF | 26.2 | ||
| P/OCF | 18.29 | ||
| P/B | 3.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.01 |
EPS(TTM)7.18
EY5.78%
EPS(NY)7.62
Fwd EY6.14%
FCF(TTM)4.74
FCFY3.82%
OCF(TTM)6.79
OCFY5.47%
SpS158.01
BVpS32.25
TBVpS-9.57
PEG (NY)2.81
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 18.15% | ||
| ROCE | 12.46% | ||
| ROIC | 9.26% | ||
| ROICexc | 9.39% | ||
| ROICexgc | 18.44% | ||
| OM | 6.82% | ||
| PM (TTM) | 3.7% | ||
| GM | 25.66% | ||
| FCFM | 3% |
ROA(3y)4%
ROA(5y)1.85%
ROE(3y)11.83%
ROE(5y)5.48%
ROIC(3y)10.67%
ROIC(5y)8.16%
ROICexc(3y)10.84%
ROICexc(5y)8.39%
ROICexgc(3y)22.16%
ROICexgc(5y)17.77%
ROCE(3y)14.35%
ROCE(5y)10.98%
ROICexcg growth 3Y-3.48%
ROICexcg growth 5Y18.99%
ROICexc growth 3Y1.96%
ROICexc growth 5Y36.23%
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%
F-Score6
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 9.62 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 62.74% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.36% | ||
| Profit Quality | 80.95% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.07 |
F-Score6
WACC9.2%
ROIC/WACC1.01
Cap/Depr(3y)63.03%
Cap/Depr(5y)47.89%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.65%
EPS 3Y18%
EPS 5Y27.75%
EPS Q2Q%-3.51%
EPS Next Y6.14%
EPS Next 2Y8.64%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)7.05%
Revenue growth 3Y13.7%
Revenue growth 5Y10.24%
Sales Q2Q%4.53%
Revenue Next Year3.12%
Revenue Next 2Y3.02%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
EBIT growth 1Y-6.57%
EBIT growth 3Y13.36%
EBIT growth 5Y38.32%
EBIT Next Year27.93%
EBIT Next 3Y13.72%
EBIT Next 5YN/A
FCF growth 1Y-55.96%
FCF growth 3Y194.19%
FCF growth 5Y13.46%
OCF growth 1Y-46.76%
OCF growth 3Y75.19%
OCF growth 5Y14.54%