BUILDERS FIRSTSOURCE INC (BLDR)
US12008R1077 - Common Stock
Taking everything into account, BLDR scores 6 out of 10 in our fundamental rating. BLDR was compared to 43 industry peers in the Building Products industry. BLDR scores excellent on profitability, but there are some minor concerns on its financial health. BLDR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLDR was profitable.
In the past year BLDR had a positive cash flow from operations.
BLDR had positive earnings in each of the past 5 years.
In the past 5 years BLDR always reported a positive cash flow from operatings.
1.2 Ratios
BLDR has a Return On Assets of 14.67%. This is amongst the best in the industry. BLDR outperforms 83.72% of its industry peers.
BLDR has a Return On Equity of 32.55%. This is amongst the best in the industry. BLDR outperforms 86.05% of its industry peers.
BLDR has a Return On Invested Capital of 19.48%. This is amongst the best in the industry. BLDR outperforms 83.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLDR is significantly above the industry average of 13.66%.
The 3 year average ROIC (24.82%) for BLDR is well above the current ROIC(19.48%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.67% | ||
| ROE | 32.55% | ||
| ROIC | 19.48% |
ROA(3y)18.91%
ROA(5y)14.22%
ROE(3y)41.29%
ROE(5y)35.6%
ROIC(3y)24.82%
ROIC(5y)20.1%
1.3 Margins
Looking at the Profit Margin, with a value of 9.01%, BLDR is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
BLDR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.73%, BLDR is in line with its industry, outperforming 53.49% of the companies in the same industry.
BLDR's Operating Margin has improved in the last couple of years.
BLDR has a Gross Margin of 35.16%. This is in the better half of the industry: BLDR outperforms 60.47% of its industry peers.
In the last couple of years the Gross Margin of BLDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.73% | ||
| PM (TTM) | 9.01% | ||
| GM | 35.17% |
OM growth 3Y26.05%
OM growth 5Y21.66%
PM growth 3Y34.92%
PM growth 5Y27.7%
GM growth 3Y10.63%
GM growth 5Y7.15%
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 more shares outstanding than it did 5 years ago.
BLDR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.09 indicates that BLDR is not in any danger for bankruptcy at the moment.
The Altman-Z score of BLDR (5.09) is comparable to the rest of the industry.
The Debt to FCF ratio of BLDR is 1.74, which is an excellent value as it means it would take BLDR, only 1.74 years of fcf income to pay off all of its debts.
BLDR has a Debt to FCF ratio of 1.74. This is in the better half of the industry: BLDR outperforms 69.77% of its industry peers.
BLDR has a Debt/Equity ratio of 0.67. This is a neutral value indicating BLDR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, BLDR is doing worse than 65.12% of the companies in the same industry.
Although BLDR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 5.09 |
ROIC/WACC1.75
WACC11.13%
2.3 Liquidity
A Current Ratio of 1.77 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR's Current ratio of 1.77 is on the low side compared to the rest of the industry. BLDR is outperformed by 67.44% of its industry peers.
A Quick Ratio of 1.11 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a Quick ratio of 1.11. This is in the lower half of the industry: BLDR underperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for BLDR have decreased strongly by -21.16% in the last year.
BLDR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.28% yearly.
Looking at the last year, BLDR shows a very negative growth in Revenue. The Revenue has decreased by -24.77% in the last year.
BLDR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.22% yearly.
EPS 1Y (TTM)-21.16%
EPS 3Y67.96%
EPS 5Y50.28%
EPS growth Q2Q10.59%
Revenue 1Y (TTM)-24.77%
Revenue growth 3Y25.94%
Revenue growth 5Y17.22%
Revenue growth Q2Q-4.74%
3.2 Future
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
BLDR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.14% yearly.
EPS Next Y-8.73%
EPS Next 2Y1%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue Next Year5.87%
Revenue Next 2Y5.77%
Revenue Next 3Y8.14%
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
BLDR is valuated correctly with a Price/Earnings ratio of 13.72.
BLDR's Price/Earnings ratio is rather cheap when compared to the industry. BLDR is cheaper than 81.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.02. BLDR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 15.03 indicates a correct valuation of BLDR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 67.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.58, BLDR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
BLDR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BLDR is cheaper than 72.09% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 62.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.39 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
The excellent profitability rating of BLDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y1%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BUILDERS FIRSTSOURCE INC
NYSE:BLDR (5/6/2024, 7:04:01 PM)
After market: 200.88 0 (0%)200.88
+5.07 (+2.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.50B
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 13.72 | ||
| Fwd PE | 15.03 | ||
| 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)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.67% | ||
| ROE | 32.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.73% | ||
| PM (TTM) | 9.01% | ||
| GM | 35.17% | ||
| 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 Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| 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)-21.16%
EPS 3Y67.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.77%
Revenue growth 3Y25.94%
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