Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and non-residential roofing materials, and complementary building products to contractors, home builders, building owners, and retailers. More Details
Good value with adequate balance sheet.
Share Price & News
How has Beacon Roofing Supply's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BECN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: BECN's weekly volatility (4%) has been stable over the past year.
7 Day Return
US Trade Distributors
1 Year Return
US Trade Distributors
Return vs Industry: BECN exceeded the US Trade Distributors industry which returned 50% over the past year.
Return vs Market: BECN exceeded the US Market which returned 33% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Beacon Roofing Supply's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StAre Investors Undervaluing Beacon Roofing Supply, Inc. (NASDAQ:BECN) By 38%?
1 month ago | Simply Wall StBased On Its ROE, Is Beacon Roofing Supply, Inc. (NASDAQ:BECN) A High Quality Stock?
2 months ago | Simply Wall StIs Beacon Roofing Supply (NASDAQ:BECN) A Risky Investment?
Is Beacon Roofing Supply undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BECN ($48.96) is trading below our estimate of fair value ($86.16)
Significantly Below Fair Value: BECN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BECN is good value based on its PE Ratio (21.3x) compared to the US Trade Distributors industry average (21.6x).
PE vs Market: BECN is poor value based on its PE Ratio (21.3x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: BECN is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: BECN's PB Ratio (2.1x) is in line with the US Trade Distributors industry average.
How is Beacon Roofing Supply forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BECN's forecast earnings growth (61.9% per year) is above the savings rate (2%).
Earnings vs Market: BECN's earnings (61.9% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BECN's revenue (4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: BECN's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BECN's Return on Equity is forecast to be low in 3 years time (13.3%).
How has Beacon Roofing Supply performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BECN has a large one-off loss of $87.3M impacting its June 30 2021 financial results.
Growing Profit Margin: BECN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: BECN's earnings have declined by 36.3% per year over the past 5 years.
Accelerating Growth: BECN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: BECN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (49.2%).
Return on Equity
High ROE: BECN's Return on Equity (9.1%) is considered low.
How is Beacon Roofing Supply's financial position?
Financial Position Analysis
Short Term Liabilities: BECN's short term assets ($2.7B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: BECN's short term assets ($2.7B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: BECN's debt to equity ratio (80.3%) is considered high.
Reducing Debt: BECN's debt to equity ratio has reduced from 91.8% to 80.3% over the past 5 years.
Debt Coverage: BECN's debt is not well covered by operating cash flow (12.7%).
Interest Coverage: BECN's interest payments on its debt are well covered by EBIT (4x coverage).
What is Beacon Roofing Supply current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BECN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BECN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BECN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BECN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BECN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Julian Francis (54 yo)
Mr. Julian G. Francis has been President, Chief Executive Officer of Beacon Roofing Supply, Inc. since August 2019 and serves as its Director since August 22, 2019. Mr. Francis has been the President of In...
CEO Compensation Analysis
Compensation vs Market: Julian's total compensation ($USD4.11M) is about average for companies of similar size in the US market ($USD5.25M).
Compensation vs Earnings: Julian's compensation has been consistent with company performance over the past year.
Experienced Management: BECN's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.
Experienced Board: BECN's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BECN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Beacon Roofing Supply, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Beacon Roofing Supply, Inc.
- Ticker: BECN
- Exchange: NasdaqGS
- Founded: 1928
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$3.429b
- Shares outstanding: 70.03m
- Website: https://www.becn.com
Number of Employees
- Beacon Roofing Supply, Inc.
- 505 Huntmar Park Drive
- Suite 300
- United States
Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and non-residential roofing materials, and complementary building products to contractors, home builders, building owner...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/22 00:16|
|End of Day Share Price||2021/09/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.