BEACON ROOFING SUPPLY INC (BECN) Stock Fundamental Analysis
NASDAQ:BECN - Nasdaq - US0736851090 - Common Stock - Currency: USD
Overall BECN gets a fundamental rating of 4 out of 10. We evaluated BECN against 49 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.
BECN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BECN reported negative net income in multiple years.
In the past 5 years BECN always reported a positive cash flow from operatings.
1.2 Ratios
BECN's Return On Assets of 5.20% is fine compared to the rest of the industry. BECN outperforms 61.22% of its industry peers.
BECN has a Return On Equity of 18.15%. This is in the better half of the industry: BECN outperforms 73.47% of its industry peers.
BECN has a better Return On Invested Capital (9.26%) than 73.47% 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 8.96%.
| 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 comparable to the rest of the industry.
With a Operating Margin value of 6.82%, BECN perfoms like the industry average, outperforming 51.02% of the companies in the same industry.
In the last couple of years the Operating Margin of BECN has grown nicely.
BECN's Gross Margin of 25.66% is on the low side compared to the rest of the industry. BECN is outperformed by 67.35% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BECN is creating some value.
BECN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BECN has less shares outstanding
BECN has a worse debt/assets ratio than last year.
2.2 Solvency
BECN has an Altman-Z score of 3.07. This indicates that BECN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, BECN is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Debt to FCF ratio of BECN is 9.62, which is on the high side as it means it would take BECN, 9.62 years of fcf income to pay off 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 53.06% 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.
Looking at the Debt to Equity ratio, with a value of 1.39, BECN is doing worse than 71.43% of the companies in the same industry.
| 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.
Looking at the Quick ratio, with a value of 1.10, BECN is in line with its industry, outperforming 40.82% 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.
The Earnings Per Share has been growing by 27.75% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 7.05% in the past year.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
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
Based on estimates for the next years, BECN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
BECN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y6.14%
EPS Next 2Y8.64%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year3.68%
Revenue Next 2Y3.58%
Revenue Next 3Y4.27%
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
Based on the Price/Earnings ratio of 17.29, the valuation of BECN can be described as rather expensive.
63.27% of the companies in the same industry are more expensive than BECN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BECN to the average of the S&P500 Index (27.75), we can say BECN is valued slightly cheaper.
BECN is valuated correctly with a Price/Forward Earnings ratio of 16.29.
BECN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.49. BECN is valued slightly cheaper when compared to this.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as BECN.
| 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 Change0.11%
Ins Owners0.52%
Ins Owner Change6.31%
Market Cap7.67B
Analysts71.43
Price Target126.41 (1.8%)
Short Float %2.8%
Short Ratio0.6
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)0.57%
PT rev (3m)7.14%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)-143.06%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-6.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.4%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.57%
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 Year3.68%
Revenue Next 2Y3.58%
Revenue Next 3Y4.27%
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%