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

Fundamentals

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


Market Performance


7 Day Return

7.8%

BECN

2.2%

US Trade Distributors

0.5%

US Market


1 Year Return

11.0%

BECN

9.0%

US Trade Distributors

6.8%

US Market

Return vs Industry: BECN exceeded the US Trade Distributors industry which returned 9% over the past year.

Return vs Market: BECN exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

BECNIndustryMarket
7 Day7.8%2.2%0.5%
30 Day-4.7%3.3%-0.8%
90 Day-6.4%7.4%-0.9%
1 Year11.0%11.0%11.0%9.0%9.2%6.8%
3 Year-22.3%-22.3%44.7%38.6%45.6%36.2%
5 Year23.3%23.3%31.5%22.1%63.2%45.4%

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?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BECN ($32.89) is trading below our estimate of fair value ($62.4)

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 (1.2x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

How is Beacon Roofing Supply forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

57.8%

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 (2.7%).

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

High Growth Earnings: BECN's loss is forecast to worsen by 0% next year.

Revenue vs Market: BECN's revenue (3.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BECN's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BECN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BECN is unprofitable, and losses have increased over the past 5 years at a rate of -5.5% 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 (0.9%).


Return on Equity

High ROE: BECN has a negative Return on Equity (0.46%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BECN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BECN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Beacon Roofing Supply's financial position?


Financial Position Analysis

Short Term Liabilities: BECN's short term assets ($2.6B) exceeds its short term liabilities ($1.3B)

Long Term Liabilities: BECN's short term assets (2.6B) do not cover its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: BECN's debt to equity ratio (131.6%) is considered high

Reducing Debt: BECN's debt to equity ratio has increased from 39.4% to 131.6% over the past 5 years.

Debt Coverage: BECN's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: BECN is unprofitable, therefore interest payments are not well covered by earnings.


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 0.9x debt).


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%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Beacon Roofing Supply's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Julian Francis (52yo)

0.2yrs

Tenure

0

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 ...


Management Age and Tenure

2.9yrs

Average Tenure

52yo

Average Age

Experienced Management: BECN's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: BECN's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$102,886,65525 Sep 19
Clayton, Dubilier & Rice, LLC
EntityCompany
Shares3,207,200
Max PriceUS$32.08
BuyUS$158,081,45428 Jun 19
Clayton, Dubilier & Rice, LLC
EntityCompany
Shares4,625,998
Max PriceUS$34.17
BuyUS$401,63414 Jun 19
Richard Frost
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,754
Max PriceUS$34.17
SellUS$200,25021 May 19
C. Swank
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares5,250
Max PriceUS$38.14
BuyUS$186,876,91314 Mar 19
Clayton, Dubilier & Rice, LLC
EntityCompany
Shares5,609,763
Max PriceUS$33.31
BuyUS$165,25028 Nov 18
Carl Berquist
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$33.05
BuyUS$229,11026 Nov 18
Robert McLaughlin
EntityIndividual
Shares7,000
Max PriceUS$32.73
BuyUS$337,42926 Nov 18
Richard Frost
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,675
Max PriceUS$31.61
BuyUS$497,82826 Nov 18
Neil Novich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,900
Max PriceUS$30.29
BuyUS$149,14726 Nov 18
Christopher Harrison
EntityIndividual
Role
Head of Human Resources
Chief HR Officer & Executive VP
Shares4,750
Max PriceUS$31.40
BuyUS$101,63526 Nov 18
Paul Isabella
EntityIndividual
Role
Senior Key Executive
Shares3,200
Max PriceUS$31.76

Ownership Breakdown


Management Team

  • Paul Isabella (63yo)

    • Tenure: 0.08yrs
    • Compensation: US$3.34m
  • Joe Nowicki (57yo)

    Executive VP & CFO

    • Tenure: 6.5yrs
    • Compensation: US$1.39m
  • C. Swank (50yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.10m
  • Ross Cooper (53yo)

    Executive VP

    • Tenure: 13.3yrs
    • Compensation: US$1.06m
  • Christopher Nelson

    Executive Vice President & Chief Information Officer

    • Tenure: 13.3yrs
  • Christopher Harrison (52yo)

    Chief HR Officer & Executive VP

    • Tenure: 5yrs
    • Compensation: US$1.02m
  • Jake Gosa

    President of North Division

    • Tenure: 0.08yrs
  • Brendan Daly

    Chief Supply Chain Officer & Executive VP

    • Tenure: 5.9yrs
  • Julian Francis (52yo)

    President

    • Tenure: 0.2yrs
  • Tom Schmitz (51yo)

    Vice President & Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Bob Buck (71yo)

    Chairman

    • Tenure: 12.6yrs
    • Compensation: US$1.37m
  • Phil Knisely (65yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$192.66k
  • Neil Novich (64yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$211.44k
  • Richard Frost (67yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$215.78k
  • Nate Sleeper (46yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$177.03k
  • Stu Randle (59yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$223.28k
  • Carl Berquist (68yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$223.94k
  • Doug Young (56yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$208.28k
  • Alan Gershenhorn (60yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$205.78k
  • Julian Francis (52yo)

    President

    • Tenure: 0.2yrs

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$2.253b
  • Shares outstanding: 68.50m
  • Website: https://www.beaconroofingsupply.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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:50
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.