BUILDERS FIRSTSOURCE INC (BLDR) Stock Fundamental Analysis
NYSE:BLDR - New York Stock Exchange, Inc. - US12008R1077 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BLDR. BLDR was compared to 41 industry peers in the Building Products industry. BLDR scores excellent on profitability, but there are some minor concerns on its financial health. BLDR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLDR was profitable.
BLDR had a positive operating cash flow in the past year.
Each year in the past 5 years BLDR has been profitable.
BLDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BLDR has a Return On Assets (8.00%) which is in line with its industry peers.
The Return On Equity of BLDR (20.93%) is better than 68.29% of its industry peers.
BLDR has a Return On Invested Capital of 11.32%. This is in the better half of the industry: BLDR outperforms 60.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BLDR is significantly above the industry average of 12.88%.
The 3 year average ROIC (22.36%) for BLDR is well above the current ROIC(11.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 20.93% | ||
| ROIC | 11.32% |
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 5.66%, BLDR is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BLDR has grown nicely.
BLDR has a worse Operating Margin (8.70%) than 60.98% of its industry peers.
In the last couple of years the Operating Margin of BLDR has grown nicely.
Looking at the Gross Margin, with a value of 32.16%, BLDR is in line with its industry, outperforming 51.22% of the companies in the same industry.
In the last couple of years the Gross Margin of BLDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.7% | ||
| PM (TTM) | 5.66% | ||
| GM | 32.16% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BLDR is creating value.
The number of shares outstanding for BLDR has been reduced compared to 1 year ago.
BLDR has less shares outstanding than it did 5 years ago.
BLDR has a worse debt/assets ratio than last year.
2.2 Solvency
BLDR has an Altman-Z score of 3.26. This indicates that BLDR is financially healthy and has little risk of bankruptcy at the moment.
BLDR's Altman-Z score of 3.26 is in line compared to the rest of the industry. BLDR outperforms 46.34% of its industry peers.
BLDR has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as BLDR would need 3.44 years to pay back of all of its debts.
BLDR has a Debt to FCF ratio (3.44) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that BLDR has dependencies on debt financing.
BLDR's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. BLDR is outperformed by 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.12
WACC10.1%
2.3 Liquidity
A Current Ratio of 1.82 indicates that BLDR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.82, BLDR perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
BLDR has a Quick Ratio of 1.07. This is a normal value and indicates that BLDR is financially healthy and should not expect problems in meeting its short term obligations.
BLDR's Quick ratio of 1.07 is on the low side compared to the rest of the industry. BLDR is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for BLDR have decreased strongly by -27.49% in the last year.
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 -5.49% in the past year.
The Revenue has been growing by 17.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-27.49%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-43.02%
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-6.01%
3.2 Future
Based on estimates for the next years, BLDR will show a small growth in Earnings Per Share. The EPS will grow by 0.87% on average per year.
Based on estimates for the next years, BLDR will show a small growth in Revenue. The Revenue will grow by 3.36% 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-0.98%
Revenue Next 2Y0.89%
Revenue Next 3Y3.36%
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 13.13, the valuation of BLDR can be described as correct.
85.37% of the companies in the same industry are more expensive than BLDR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.04, BLDR is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.14, BLDR is valued correctly.
Based on the Price/Forward Earnings ratio, BLDR is valued a bit cheaper than 73.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, BLDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLDR is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
BLDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BLDR is cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
The decent profitability rating of BLDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
No dividends for BLDR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
136.46
+3.67 (+2.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change-1.27%
Ins Owners2.47%
Ins Owner Change4.82%
Market Cap15.08B
Analysts80
Price Target143 (4.79%)
Short Float %5.74%
Short Ratio2.63
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)10.41%
Min EPS beat(2)8.35%
Max EPS beat(2)12.47%
EPS beat(4)4
Avg EPS beat(4)8.86%
Min EPS beat(4)1.07%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)18.65%
EPS beat(12)12
Avg EPS beat(12)35.73%
EPS beat(16)16
Avg EPS beat(16)45.37%
Revenue beat(2)0
Avg Revenue beat(2)-9.74%
Min Revenue beat(2)-17.56%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-7.2%
Min Revenue beat(4)-17.56%
Max Revenue beat(4)-1.92%
Revenue beat(8)2
Avg Revenue beat(8)-3.78%
Revenue beat(12)6
Avg Revenue beat(12)0.5%
Revenue beat(16)10
Avg Revenue beat(16)3.26%
PT rev (1m)-1.3%
PT rev (3m)-16.75%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-18.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.27%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-5.1%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 14.14 | ||
| P/S | 0.93 | ||
| P/FCF | 11.6 | ||
| P/OCF | 8.93 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.86 |
EPS(TTM)10.39
EY7.61%
EPS(NY)9.65
Fwd EY7.07%
FCF(TTM)11.77
FCFY8.62%
OCF(TTM)15.27
OCFY11.19%
SpS146.29
BVpS39.58
TBVpS-8.26
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 20.93% | ||
| ROCE | 14.58% | ||
| ROIC | 11.32% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 25.73% | ||
| OM | 8.7% | ||
| PM (TTM) | 5.66% | ||
| GM | 32.16% | ||
| FCFM | 8.04% |
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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 68.36% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 85.56% | ||
| Profit Quality | 142.07% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.26 |
F-Score4
WACC10.1%
ROIC/WACC1.12
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)-27.49%
EPS 3Y4.76%
EPS 5Y40.71%
EPS Q2Q%-43.02%
EPS Next Y-28.51%
EPS Next 2Y-8.51%
EPS Next 3Y0.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-6.01%
Revenue Next Year-0.98%
Revenue Next 2Y0.89%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y-32.49%
EBIT growth 3Y-12.79%
EBIT growth 5Y32.41%
EBIT Next Year14.05%
EBIT Next 3Y12.87%
EBIT Next 5YN/A
FCF growth 1Y-64.65%
FCF growth 3Y-0.52%
FCF growth 5Y30.71%
OCF growth 1Y-58.57%
OCF growth 3Y2.41%
OCF growth 5Y30.02%