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 41 industry peers in the Building Products industry. BLDR scores excellent on profitability, but there are some minor concerns on its financial health. BLDR may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make BLDR a good candidate for value investing.
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.
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's Return On Assets of 10.19% is fine compared to the rest of the industry. BLDR outperforms 63.41% of its industry peers.
BLDR has a better Return On Equity (25.09%) than 73.17% of its industry peers.
BLDR's Return On Invested Capital of 14.07% is fine compared to the rest of the industry. BLDR outperforms 70.73% 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 13.22%.
The last Return On Invested Capital (14.07%) 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 | 10.19% | ||
| ROE | 25.09% | ||
| ROIC | 14.07% |
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's Profit Margin of 6.57% is in line compared to the rest of the industry. BLDR outperforms 41.46% of its industry peers.
In the last couple of years the Profit Margin of BLDR has grown nicely.
BLDR has a Operating Margin of 9.73%. This is in the lower half of the industry: BLDR underperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of BLDR has grown nicely.
The Gross Margin of BLDR (32.82%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BLDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.73% | ||
| PM (TTM) | 6.57% | ||
| GM | 32.82% |
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.
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.
Compared to 1 year ago, BLDR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.44 indicates that BLDR is not in any danger for bankruptcy at the moment.
BLDR has a Altman-Z score of 3.44. This is comparable to the rest of the industry: BLDR outperforms 58.54% of its industry peers.
BLDR has a debt to FCF ratio of 2.48. This is a good value and a sign of high solvency as BLDR would need 2.48 years to pay back of all of its debts.
BLDR's Debt to FCF ratio of 2.48 is fine compared to the rest of the industry. BLDR outperforms 68.29% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BLDR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, BLDR is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
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 | 0.86 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.39
WACC10.1%
2.3 Liquidity
A Current Ratio of 1.77 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a worse Current ratio (1.77) than 60.98% of its industry peers.
A Quick Ratio of 1.09 indicates that BLDR should not have too much problems paying its short term obligations.
BLDR has a Quick ratio of 1.09. This is in the lower half of the industry: BLDR underperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.09 |
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%.
The Earnings Per Share has been growing by 40.71% on average over the past years. This is a very strong growth
BLDR shows a decrease in Revenue. In the last year, the revenue decreased by -4.08%.
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)-4.08%
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 6.48% 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 3.83% on average per year.
EPS Next Y-17.57%
EPS Next 2Y-1.26%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue Next Year1.47%
Revenue Next 2Y3.15%
Revenue Next 3Y3.83%
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
The Price/Earnings ratio is 10.98, which indicates a very decent valuation of BLDR.
Compared to the rest of the industry, the Price/Earnings ratio of BLDR indicates a rather cheap valuation: BLDR is cheaper than 82.93% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. BLDR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.15, the valuation of BLDR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BLDR is valued cheaper than 85.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. BLDR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.15 |
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.
Based on the Price/Free Cash Flow ratio, BLDR is valued cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
BLDR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-1.26%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
No dividends for BLDR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.13
+2.2 (+1.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change-0.92%
Ins Owners1.8%
Ins Owner Change0.37%
Market Cap12.98B
Analysts82.31
Price Target171.77 (50.5%)
Short Float %3.5%
Short Ratio2.18
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)3.88%
Min EPS beat(2)1.07%
Max EPS beat(2)6.68%
EPS beat(4)4
Avg EPS beat(4)8.59%
Min EPS beat(4)1.07%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)28.33%
EPS beat(12)12
Avg EPS beat(12)42.29%
EPS beat(16)16
Avg EPS beat(16)47.71%
Revenue beat(2)0
Avg Revenue beat(2)-12.17%
Min Revenue beat(2)-17.56%
Max Revenue beat(2)-6.77%
Revenue beat(4)0
Avg Revenue beat(4)-6.78%
Min Revenue beat(4)-17.56%
Max Revenue beat(4)-0.22%
Revenue beat(8)3
Avg Revenue beat(8)-2.73%
Revenue beat(12)7
Avg Revenue beat(12)2.41%
Revenue beat(16)11
Avg Revenue beat(16)3.9%
PT rev (1m)-5.2%
PT rev (3m)-16.59%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-36.36%
EPS NY rev (1m)-2.63%
EPS NY rev (3m)-17.64%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-6.68%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.15 | ||
| P/S | 0.79 | ||
| P/FCF | 8.7 | ||
| P/OCF | 6.93 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)10.39
EY9.1%
EPS(NY)11.24
Fwd EY9.85%
FCF(TTM)13.12
FCFY11.49%
OCF(TTM)16.46
OCFY14.43%
SpS144.19
BVpS37.77
TBVpS-4.27
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 25.09% | ||
| ROCE | 18.12% | ||
| ROIC | 14.07% | ||
| ROICexc | 14.32% | ||
| ROICexgc | 32.01% | ||
| OM | 9.73% | ||
| PM (TTM) | 6.57% | ||
| GM | 32.82% | ||
| FCFM | 9.1% |
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 Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 67.73% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 8.46 | ||
| Cash Conversion | 86.81% | ||
| Profit Quality | 138.43% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.44 |
F-Score4
WACC10.1%
ROIC/WACC1.39
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-17.57%
EPS Next 2Y-1.26%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y-6.23%
Revenue growth 5Y17.64%
Sales Q2Q%-6.01%
Revenue Next Year1.47%
Revenue Next 2Y3.15%
Revenue Next 3Y3.83%
Revenue Next 5YN/A
EBIT growth 1Y-26.7%
EBIT growth 3Y-12.79%
EBIT growth 5Y32.41%
EBIT Next Year31.19%
EBIT Next 3Y16.48%
EBIT Next 5YN/A
FCF growth 1Y-18.49%
FCF growth 3Y-0.52%
FCF growth 5Y30.71%
OCF growth 1Y-18.82%
OCF growth 3Y2.41%
OCF growth 5Y30.02%