BUILDERS FIRSTSOURCE INC (BLDR) Stock Fundamental Analysis
NYSE:BLDR - New York Stock Exchange, Inc. - US12008R1077 - Common Stock - Currency: USD
Taking everything into account, BLDR scores 5 out of 10 in our fundamental rating. BLDR was compared to 42 industry peers in the Building Products industry. While BLDR has a great profitability rating, 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
BLDR had positive earnings in the past year.
In the past year BLDR had a positive cash flow from operations.
In the past 5 years BLDR has always been profitable.
Each year in the past 5 years BLDR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.00%, BLDR is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Return On Equity of BLDR (20.93%) is better than 71.43% of its industry peers.
The Return On Invested Capital of BLDR (11.32%) is better than 61.90% 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 12.90%.
The last Return On Invested Capital (11.32%) 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 | 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
Looking at the Profit Margin, with a value of 5.66%, BLDR is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of BLDR has grown nicely.
With a Operating Margin value of 8.70%, BLDR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BLDR has grown nicely.
BLDR has a Gross Margin of 32.16%. This is comparable to the rest of the industry: BLDR outperforms 50.00% of its industry peers.
BLDR's Gross Margin has improved in the last couple of years.
| 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
BLDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BLDR has less shares outstanding than it did 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 3.00. This indicates that BLDR is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.00, BLDR perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
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.
The Debt to FCF ratio of BLDR (3.44) 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 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 3 |
ROIC/WACC1.16
WACC9.76%
2.3 Liquidity
BLDR has a Current Ratio of 1.82. 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 Current ratio of 1.82 is in line compared to the rest of the industry. BLDR outperforms 40.48% 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 Quick ratio of 1.07. This is in the lower half of the industry: BLDR underperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
BLDR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.49%.
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.
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)-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
The Earnings Per Share is expected to grow by 0.87% on average over the next years.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y-27.32%
EPS Next 2Y-9.18%
EPS Next 3Y0.87%
EPS Next 5YN/A
Revenue Next Year-0.7%
Revenue Next 2Y0.89%
Revenue Next 3Y3.34%
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
Based on the Price/Earnings ratio of 10.73, the valuation of BLDR can be described as reasonable.
Based on the Price/Earnings ratio, BLDR is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
BLDR is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.72, the valuation of BLDR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLDR indicates a somewhat cheap valuation: BLDR is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.77. BLDR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 11.72 |
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 76.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BLDR is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The decent profitability rating of BLDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-9.18%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
BLDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.5
+3.17 (+2.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change0.05%
Ins Owners1.8%
Ins Owner Change4.44%
Market Cap12.32B
Analysts82.31
Price Target148.06 (32.79%)
Short Float %3.87%
Short Ratio2.4
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)-18.05%
PT rev (3m)-26.69%
EPS NQ rev (1m)-21.72%
EPS NQ rev (3m)-31.56%
EPS NY rev (1m)-11.83%
EPS NY rev (3m)-26.4%
Revenue NQ rev (1m)-4.58%
Revenue NQ rev (3m)-6.95%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)-5.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.76 | ||
| P/FCF | 9.47 | ||
| P/OCF | 7.3 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.28 |
EPS(TTM)10.39
EY9.32%
EPS(NY)9.51
Fwd EY8.53%
FCF(TTM)11.77
FCFY10.55%
OCF(TTM)15.27
OCFY13.7%
SpS146.29
BVpS39.58
TBVpS-8.26
PEG (NY)N/A
PEG (5Y)0.26
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 |
F-Score4
WACC9.76%
ROIC/WACC1.16
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-27.32%
EPS Next 2Y-9.18%
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-0.7%
Revenue Next 2Y0.89%
Revenue Next 3Y3.34%
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%