BEACON ROOFING SUPPLY INC (BECN)
US0736851090 - Common Stock
Taking everything into account, BECN scores 4 out of 10 in our fundamental rating. BECN was compared to 51 industry peers in the Trading Companies & Distributors industry. While BECN seems to be doing ok healthwise, there are quite some concerns on its profitability. BECN is not valued too expensively and it also shows a decent growth rate.
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 the past 5 years BECN reported 4 times negative net income.
In the past 5 years BECN always reported a positive cash flow from operatings.
1.2 Ratios
BECN has a Return On Assets of -0.56%. This is amonst the worse of the industry: BECN underperforms 82.35% of its industry peers.
BECN's Return On Equity of -2.08% is on the low side compared to the rest of the industry. BECN is outperformed by 84.31% of its industry peers.
BECN has a better Return On Invested Capital (10.30%) than 68.63% of its industry peers.
BECN had an Average Return On Invested Capital over the past 3 years of 10.31%. This is in line with the industry average of 11.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.08% | ||
| ROIC | 10.3% |
ROA(3y)1.85%
ROA(5y)0.7%
ROE(3y)4.7%
ROE(5y)1.54%
ROIC(3y)10.31%
ROIC(5y)6.68%
1.3 Margins
With a Operating Margin value of 7.49%, BECN perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
BECN's Operating Margin has improved in the last couple of years.
BECN has a worse Gross Margin (25.53%) than 68.63% of its industry peers.
In the last couple of years the Gross Margin of BECN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.49% | ||
| PM (TTM) | N/A | ||
| GM | 25.53% |
OM growth 3Y136.34%
OM growth 5Y19.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.28%
GM growth 5Y0.69%
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.
The number of shares outstanding for BECN has been reduced compared to 1 year ago.
BECN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BECN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that BECN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.84, BECN perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
The Debt to FCF ratio of BECN is 6.59, which is on the high side as it means it would take BECN, 6.59 years of fcf income to pay off all of its debts.
BECN has a Debt to FCF ratio (6.59) which is in line with its industry peers.
BECN has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.47, BECN is doing worse than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.19
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.87 indicates that BECN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.87, BECN is in line with its industry, outperforming 47.06% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that BECN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.02, BECN perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
BECN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.
Measured over the past years, BECN shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.96% on average per year.
The Revenue has grown by 9.73% in the past year. This is quite good.
Measured over the past years, BECN shows a small growth in Revenue. The Revenue has been growing by 7.28% on average per year.
EPS 1Y (TTM)6.43%
EPS 3Y45.72%
EPS 5Y24.96%
EPS growth Q2Q-37.88%
Revenue 1Y (TTM)9.73%
Revenue growth 3Y15.51%
Revenue growth 5Y7.28%
Revenue growth Q2Q10.4%
3.2 Future
The Earnings Per Share is expected to grow by 3.36% on average over the next years.
Based on estimates for the next years, BECN will show a small growth in Revenue. The Revenue will grow by 3.07% on average per year.
EPS Next Y-0.48%
EPS Next 2Y5.03%
EPS Next 3Y3.36%
EPS Next 5YN/A
Revenue Next Year5.13%
Revenue Next 2Y4.19%
Revenue Next 3Y3.07%
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 correctly with a Price/Earnings ratio of 12.54.
Compared to the rest of the industry, the Price/Earnings ratio of BECN indicates a somewhat cheap valuation: BECN is cheaper than 62.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.02. BECN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.01, which indicates a very decent valuation of BECN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BECN indicates a somewhat cheap valuation: BECN is cheaper than 78.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BECN to the average of the S&P500 Index (20.58), we can say BECN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
BECN's Enterprise Value to EBITDA ratio is in line with the industry average.
74.51% of the companies in the same industry are more expensive than BECN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.52 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y5.03%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
BECN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BEACON ROOFING SUPPLY INC
NASDAQ:BECN (5/6/2024, 7:00:02 PM)
After market: 95.46 0 (0%)95.46
-0.43 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 11.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.49% | ||
| PM (TTM) | N/A | ||
| GM | 25.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.43%
EPS 3Y45.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.73%
Revenue growth 3Y15.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y