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 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. BLDR has an excellent profitability rating, 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.
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 (8.00%) which is comparable to the rest of the industry.
BLDR's Return On Equity of 20.93% is fine compared to the rest of the industry. BLDR outperforms 68.29% of its industry peers.
The Return On Invested Capital of BLDR (11.32%) is better than 60.98% of its industry peers.
BLDR had an Average Return On Invested Capital over the past 3 years of 22.36%. This is significantly above the industry average of 12.81%.
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
BLDR has a worse Profit Margin (5.66%) than 60.98% of its industry peers.
BLDR's Profit Margin has improved in the last couple of years.
The Operating Margin of BLDR (8.70%) is worse than 60.98% of its industry peers.
BLDR's Operating Margin has improved in the last couple of years.
BLDR's Gross Margin of 32.16% is in line compared to the rest of the industry. BLDR outperforms 51.22% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BLDR is creating value.
Compared to 1 year ago, BLDR has less shares outstanding
Compared to 5 years ago, BLDR has less shares outstanding
BLDR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.25 indicates that BLDR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.25, BLDR is in line with its industry, outperforming 43.90% of the companies in the same industry.
The Debt to FCF ratio of BLDR is 3.44, which is a good value as it means it would take BLDR, 3.44 years of fcf income to pay off all of its debts.
BLDR's Debt to FCF ratio of 3.44 is in line compared to the rest of the industry. BLDR outperforms 58.54% of its industry peers.
BLDR has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.02, BLDR is doing worse than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.13
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.82 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a Current ratio of 1.82. This is comparable to the rest of the industry: BLDR outperforms 43.90% of its industry peers.
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 has a worse Quick ratio (1.07) than 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.
The Earnings Per Share has been growing by 40.71% on average over the past years. This is a very strong growth
The Revenue has decreased by -5.49% in the past year.
BLDR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.64% yearly.
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
BLDR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.87% yearly.
The Revenue is expected to grow by 3.36% on average over the next years.
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.
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 12.97, the valuation of BLDR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BLDR indicates a rather cheap valuation: BLDR is cheaper than 85.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BLDR to the average of the S&P500 Index (27.69), we can say BLDR is valued rather cheaply.
The Price/Forward Earnings ratio is 13.96, which indicates a correct valuation of BLDR.
BLDR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BLDR is cheaper than 73.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, BLDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 13.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLDR is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
90.24% 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 | 11.45 | ||
| EV/EBITDA | 9.76 |
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
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
134.72
+3.89 (+2.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change-1.29%
Ins Owners2.47%
Ins Owner Change4.82%
Market Cap14.89B
Analysts80
Price Target143 (6.15%)
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)-20.85%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-18%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.27%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 13.96 | ||
| P/S | 0.92 | ||
| P/FCF | 11.45 | ||
| P/OCF | 8.82 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)10.39
EY7.71%
EPS(NY)9.65
Fwd EY7.16%
FCF(TTM)11.77
FCFY8.74%
OCF(TTM)15.27
OCFY11.34%
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 | 3.25 |
F-Score4
WACC10.04%
ROIC/WACC1.13
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%