BUILDERS FIRSTSOURCE INC (BLDR) Stock Fundamental Analysis
NYSE:BLDR - New York Stock Exchange, Inc. - US12008R1077 - Common Stock - Currency: USD
BLDR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. While BLDR is still in line with the averages on profitability rating, there are concerns on its financial health. BLDR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BLDR had positive earnings in the past year.
BLDR had a positive operating cash flow in the past year.
In the past 5 years BLDR has always been profitable.
In the past 5 years BLDR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.60%, BLDR is in line with its industry, outperforming 54.76% of the companies in the same industry.
The Return On Equity of BLDR (18.10%) is better than 66.67% of its industry peers.
With a Return On Invested Capital value of 9.90%, BLDR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BLDR is significantly above the industry average of 13.12%.
The last Return On Invested Capital (9.90%) for BLDR is well below the 3 year average (22.36%), which needs to be investigated, but indicates that BLDR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 18.1% | ||
| ROIC | 9.9% |
ROA(3y)16.93%
ROA(5y)14.89%
ROE(3y)37.68%
ROE(5y)35.24%
ROIC(3y)22.36%
ROIC(5y)20.5%
1.3 Margins
With a Profit Margin value of 4.74%, BLDR is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BLDR has grown nicely.
Looking at the Operating Margin, with a value of 7.70%, BLDR is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of BLDR has grown nicely.
Looking at the Gross Margin, with a value of 31.58%, BLDR is in line with its industry, outperforming 50.00% of the companies in the same industry.
BLDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.7% | ||
| PM (TTM) | 4.74% | ||
| GM | 31.58% |
OM growth 3Y-6.99%
OM growth 5Y12.55%
PM growth 3Y-8.82%
PM growth 5Y16.6%
GM growth 3Y3.73%
GM growth 5Y3.86%
2. Health
2.1 Basic Checks
BLDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BLDR has less shares outstanding
BLDR has less shares outstanding than it did 5 years ago.
BLDR has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BLDR is 3.93, which is a good value as it means it would take BLDR, 3.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.93, BLDR is in line with its industry, outperforming 54.76% of the companies in the same industry.
BLDR has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BLDR (1.12) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC10.15%
2.3 Liquidity
BLDR has a Current Ratio of 1.79. This is a normal value and indicates that BLDR is financially healthy and should not expect problems in meeting its short term obligations.
BLDR has a Current ratio of 1.79. This is comparable to the rest of the industry: BLDR outperforms 42.86% of its industry peers.
A Quick Ratio of 1.08 indicates that BLDR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, BLDR is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
BLDR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.50%.
Measured over the past years, BLDR shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.71% on average per year.
The Revenue has decreased by -6.39% in the past year.
Measured over the past years, BLDR shows a quite strong growth in Revenue. The Revenue has been growing by 17.64% on average per year.
EPS 1Y (TTM)-33.5%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-32%
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-4.99%
3.2 Future
The Earnings Per Share is expected to grow by 0.87% on average over the next years.
Based on estimates for the next years, BLDR will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y-28.51%
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
EPS Next 5YN/A
Revenue Next Year-1.43%
Revenue Next 2Y0.77%
Revenue Next 3Y3.32%
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 14.77, the valuation of BLDR can be described as correct.
78.57% of the companies in the same industry are more expensive than BLDR, based on the Price/Earnings ratio.
BLDR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.87.
BLDR is valuated correctly with a Price/Forward Earnings ratio of 14.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 73.81% of the companies listed in the same industry.
BLDR is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 71.43% of the companies listed in the same industry.
88.10% of the companies in the same industry are more expensive than BLDR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 10.96 |
4.3 Compensation for Growth
The decent profitability rating of BLDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
136.88
-1.27 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.83%
Inst Owner Change-1.48%
Ins Owners2.49%
Ins Owner Change4.53%
Market Cap15.13B
Analysts79.26
Price Target140.85 (2.9%)
Short Float %6.37%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)2.38%
Max EPS beat(2)12.47%
EPS beat(4)4
Avg EPS beat(4)6.07%
Min EPS beat(4)1.07%
Max EPS beat(4)12.47%
EPS beat(8)8
Avg EPS beat(8)12.44%
EPS beat(12)12
Avg EPS beat(12)27.52%
EPS beat(16)16
Avg EPS beat(16)42.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-7.3%
Min Revenue beat(4)-17.56%
Max Revenue beat(4)-1.92%
Revenue beat(8)1
Avg Revenue beat(8)-4.98%
Revenue beat(12)5
Avg Revenue beat(12)-1.63%
Revenue beat(16)9
Avg Revenue beat(16)2.64%
PT rev (1m)-2.78%
PT rev (3m)-4.87%
EPS NQ rev (1m)-27.81%
EPS NQ rev (3m)-41.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)-10.41%
Revenue NQ rev (3m)-14.13%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 14.18 | ||
| P/S | 0.95 | ||
| P/FCF | 12.72 | ||
| P/OCF | 9.59 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.96 |
EPS(TTM)9.27
EY6.77%
EPS(NY)9.65
Fwd EY7.05%
FCF(TTM)10.76
FCFY7.86%
OCF(TTM)14.27
OCFY10.42%
SpS144.28
BVpS37.81
TBVpS-9.71
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 18.1% | ||
| ROCE | 12.75% | ||
| ROIC | 9.9% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 22.22% | ||
| OM | 7.7% | ||
| PM (TTM) | 4.74% | ||
| GM | 31.58% | ||
| FCFM | 7.46% |
ROA(3y)16.93%
ROA(5y)14.89%
ROE(3y)37.68%
ROE(5y)35.24%
ROIC(3y)22.36%
ROIC(5y)20.5%
ROICexc(3y)22.6%
ROICexc(5y)21.09%
ROICexgc(3y)52.47%
ROICexgc(5y)46.44%
ROCE(3y)28.8%
ROCE(5y)26.39%
ROICexcg growth 3Y-14.33%
ROICexcg growth 5Y9.79%
ROICexc growth 3Y-13.16%
ROICexc growth 5Y2.57%
OM growth 3Y-6.99%
OM growth 5Y12.55%
PM growth 3Y-8.82%
PM growth 5Y16.6%
GM growth 3Y3.73%
GM growth 5Y3.86%
F-Score4
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 67.97% | ||
| Cap/Sales | 2.43% | ||
| Interest Coverage | 5.27 | ||
| Cash Conversion | 87.67% | ||
| Profit Quality | 157.18% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | N/A |
F-Score4
WACC10.15%
ROIC/WACC0.98
Cap/Depr(3y)73.83%
Cap/Depr(5y)71.85%
Cap/Sales(3y)2.2%
Cap/Sales(5y)1.81%
Profit Quality(3y)125.27%
Profit Quality(5y)102.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.5%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-32%
EPS Next Y-28.51%
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-4.99%
Revenue Next Year-1.43%
Revenue Next 2Y0.77%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y-38.45%
EBIT growth 3Y-12.79%
EBIT growth 5Y32.41%
EBIT Next Year1.15%
EBIT Next 3Y6.94%
EBIT Next 5YN/A
FCF growth 1Y-61.23%
FCF growth 3Y-0.52%
FCF growth 5Y30.71%
OCF growth 1Y-55.18%
OCF growth 3Y2.41%
OCF growth 5Y30.02%