BEACON ROOFING SUPPLY INC (BECN) Stock Fundamental Analysis
USA - NASDAQ:BECN - US0736851090 - Common Stock
124.17 USD
-0.02 (-0.02%)
124.22 USD
+0.05 (+0.04%)
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. BECN has only an average score on both its financial health and profitability. While showing a medium growth rate, BECN is valued expensive at the moment.
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.
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
Looking at the Return On Assets, with a value of 5.20%, BECN is in line with its industry, outperforming 60.00% of the companies in the same 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.
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 10.13%.
| 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's Profit Margin of 3.70% is in line compared to the rest of the industry. BECN outperforms 50.00% of its industry peers.
With a Operating Margin value of 6.82%, BECN perfoms like the industry average, outperforming 54.00% of the companies in the same 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.
BECN has less shares outstanding than it did 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
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 comparable to the rest of the industry.
A Debt/Equity ratio of 1.39 is on the high side and indicates that BECN has dependencies on debt financing.
BECN's Debt to Equity ratio of 1.39 is on the low side compared to the rest of the industry. BECN is outperformed by 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
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 in line with its industry peers.
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%.
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 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
Compared to the rest of the industry, the Price/Earnings ratio of BECN indicates a somewhat cheap valuation: BECN is cheaper than 66.00% of the companies listed in the same industry.
BECN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
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.
When comparing the Price/Forward Earnings ratio of BECN to the average of the S&P500 Index (33.61), we can say BECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BECN is on the same level as its industry peers.
BECN's Price/Free Cash Flow ratio is in line with 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
No dividends for BECN!.
| 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-9.67%
Ins Owners0.52%
Ins Owner Change0%
Market Cap7.67B
Revenue(TTM)9.76B
Net Income(TTM)361.70M
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
Graham NumberN/A
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%
ROICexgc growth 3Y-3.48%
ROICexgc 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%
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.
Can you provide the valuation status for BEACON ROOFING SUPPLY INC?
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.
Can you provide the financial health for BECN stock?
The financial health rating of BEACON ROOFING SUPPLY INC (BECN) is 4 / 10.
Can you provide the expected EPS growth for BECN stock?
The Earnings per Share (EPS) of BEACON ROOFING SUPPLY INC (BECN) is expected to grow by 6.14% in the next year.