NasdaqGS:BECN

Stock Analysis Report

Executive Summary

Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and commercial roofing materials, and other complementary building materials to contractors, home builders, retailers, and building materials suppliers.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

BECN

-0.6%

US Trade Distributors

-1.1%

US Market


1 Year Return

-10.8%

BECN

9.1%

US Trade Distributors

17.9%

US Market

Return vs Industry: BECN underperformed the US Trade Distributors industry which returned 9.1% over the past year.

Return vs Market: BECN underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

BECNIndustryMarket
7 Day-5.8%-0.6%-1.1%
30 Day-3.1%0.3%1.4%
90 Day0.4%-0.6%6.9%
1 Year-10.8%-10.8%11.1%9.1%20.3%17.9%
3 Year-25.8%-25.8%21.8%16.2%47.8%38.3%
5 Year11.7%11.7%43.6%32.8%71.9%53.0%

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

Valuation

Is Beacon Roofing Supply undervalued compared to its fair value and its price relative to the market?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BECN ($33.52) is trading below our estimate of fair value ($42.2)

Significantly Below Fair Value: BECN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BECN is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: BECN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BECN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BECN is good value based on its PB Ratio (1.3x) compared to the US Trade Distributors industry average (1.6x).


Next Steps

Future Growth

How is Beacon Roofing Supply forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

48.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BECN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BECN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BECN's is expected to become profitable in the next 3 years.

Revenue vs Market: BECN's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BECN's revenue (2.8% 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 (9.5%).


Next Steps

Past Performance

How has Beacon Roofing Supply performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BECN is currently unprofitable.

Growing Profit Margin: BECN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BECN is unprofitable, and losses have increased over the past 5 years at a rate of -24% per year.

Accelerating Growth: Unable to compare BECN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BECN is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (5.2%).


Return on Equity

High ROE: BECN has a negative Return on Equity (-1.48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beacon Roofing Supply's financial position?


Financial Position Analysis

Short Term Liabilities: BECN's short term assets ($2.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: BECN's short term assets ($2.3B) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: BECN's debt to equity ratio (121.7%) is considered high.

Reducing Debt: BECN's debt to equity ratio has increased from 30% to 121.7% over the past 5 years.


Balance Sheet

Inventory Level: BECN has a high level of physical assets or inventory.

Debt Coverage by Assets: BECN's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BECN has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BECN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Beacon Roofing Supply's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BECN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BECN's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Julian Francis (52yo)

0.5yrs

Tenure

US$3,141,144

Compensation

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 ($USD3.14M) is about average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Insufficient data to compare Julian's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Julian Francis
President0.5yrsUS$3.14mno data
Joseph Nowicki
Executive VP & CFO6.8yrsUS$1.23m0.052% $1.2m
C. Swank
Chief Operating Officer1.1yrsUS$1.28m0.054% $1.2m
Ross Cooper
Executive VP13.6yrsUS$883.96k0.026% $598.3k
Christopher Harrison
Chief HR Officer & Executive VP5.3yrsUS$911.26k0.037% $843.2k
Paul Isabella
0.4yrsUS$3.19m0.27% $6.3m
Thomas Schmitz
VP & Chief Accounting Officer0.8yrsno data0.0010% $23.5k
Christopher Nelson
Executive VP & Chief Information Officer13.6yrsno datano data
Robert Buck
Executive Director16.3yrsUS$1.37m0.063% $1.5m
Kent Gardner
President of West Division0yrsno datano data

3.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: BECN's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Julian Francis
President0.5yrsUS$3.14mno data
Robert Buck
Executive Director16.3yrsUS$1.37m0.063% $1.5m
Philip Knisely
Chairman0yrsUS$200.01k0.0087% $201.1k
Neil Novich
Independent Director7.6yrsUS$222.51k0.025% $566.4k
Richard Frost
Independent Director7.6yrsUS$225.01k0.054% $1.2m
Nathan Sleeper
Director2.1yrsUS$200.01kno data
Stuart Randle
Lead Independent Director0yrsUS$232.51k0.048% $1.1m
Carl Berquist
Independent Director3.7yrsUS$235.01k0.015% $335.1k
Douglas Young
Independent Director5.3yrsUS$217.51kno data
Alan Gershenhorn
Independent Director4.8yrsUS$215.01kno data

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: BECN's board of directors are considered experienced (5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Beacon Roofing Supply, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beacon Roofing Supply, Inc.
  • Ticker: BECN
  • Exchange: NasdaqGS
  • Founded: 1928
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$2.306b
  • Shares outstanding: 68.81m
  • Website: https://www.becn.com

Number of Employees


Location

  • Beacon Roofing Supply, Inc.
  • 505 Huntmar Park Drive
  • Suite 300
  • Herndon
  • Virginia
  • 20170
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BECNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2004
OWYDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2004

Biography

Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and commercial roofing materials, and other complementary building materials to contractors, home builders, retailers, and building materials suppliers. The company’s residential roofing products include asphalt shingles, synthetic slates and tiles, clay and concrete tiles, slates, nail base insulations, metal roofing, felts, synthetic underlayment, wood shingles and shakes, nails and fasteners, metal edgings and flashings, prefabricated flashings, ridges and soffit vents, and solar systems. Its non-residential roofing products comprise single-ply roofing, asphalt, metal, modified bitumen, and build-up roofing products; cements and coatings; flat stock and tapered insulations; commercial fasteners; metal edges and flashings; smoke/roof hatches; roofing tools; sheet metal products, including copper, aluminum, and steel; and PVC, thermoplastic olefin, and ethylene propylene diene monomer membrane products. The company also provides complementary building products, such as vinyl and fiber cement sidings; wallboards; insulations; acoustical ceilings; stone veneers; windows; doors; skylights; gutters and downspouts; decking and railings; air barriers; concrete restoration systems; and steel stud framing and waterproofing systems. In addition, it offers value-added services, including advice and assistance on product identification, specification, technical support, and training; job site delivery, rooftop loading, and logistical services; tapered insulation design and related layout services; metal fabrication and related metal roofing design and layout services; trade credit and online bill pay; and marketing support for contractors. As of September 30, 2019, the company operated through a network of 529 branches in 50 states of the United States and 6 provinces in Canada. Beacon Roofing Supply, Inc. was founded in 1928 and is headquartered in Herndon, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:30
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.