BEACON ROOFING SUPPLY INC (BECN) Stock Fundamental Analysis
NASDAQ:BECN - Nasdaq - US0736851090 - Common Stock - Currency: USD
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. BECN has an average financial health and profitability rating. 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.
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
The Return On Assets of BECN (5.20%) 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 has a Return On Invested Capital of 9.26%. This is in the better half of the industry: BECN outperforms 72.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BECN is in line with the industry average of 9.99%.
| 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.
BECN has a Operating Margin (6.82%) which is comparable to the rest of the industry.
BECN's Operating Margin has improved in the last couple of years.
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
BECN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BECN has less shares outstanding
BECN has less shares outstanding than it did 5 years ago.
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.
BECN's Altman-Z score of 3.07 is in line compared to the rest of the industry. BECN outperforms 56.00% of its industry peers.
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 has a Debt to FCF ratio (9.62) which is in line with its industry peers.
A Debt/Equity ratio of 1.39 is on the high side and indicates that BECN has dependencies on debt financing.
BECN has a Debt to Equity ratio of 1.39. This is in the lower half of the industry: BECN underperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 9.62 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.01
WACC9.2%
2.3 Liquidity
BECN has a Current Ratio of 1.97. 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 Current ratio, with a value of 1.97, BECN is in line with its industry, outperforming 50.00% of the companies in the same 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.
BECN's Quick ratio of 1.10 is in line compared to the rest of the industry. BECN outperforms 42.00% of its industry peers.
| 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.
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
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.
BECN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
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.
BECN's Price/Earnings ratio is a bit cheaper when compared to the industry. BECN is cheaper than 66.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, BECN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.29, BECN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BECN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.09. BECN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
BECN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BECN is on the same level as its industry peers.
| 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
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-14.74%
Ins Owners0.52%
Ins Owner Change-64.96%
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%