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Beacon Roofing Supply

Nasdaq:BECN
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BECN
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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 last earnings update was 75 days ago. More info.


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BECN Share Price and Events
7 Day Returns
-3.4%
NasdaqGS:BECN
-3.6%
US Trade Distributors
-1.2%
US Market
1 Year Returns
-17.9%
NasdaqGS:BECN
-14%
US Trade Distributors
3.4%
US Market
BECN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Beacon Roofing Supply (BECN) -3.4% 2.5% -7.3% -17.9% -26.4% 25.6%
US Trade Distributors -3.6% -3.6% -8% -14% 25.1% 7%
US Market -1.2% 0.7% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • BECN underperformed the Trade Distributors industry which returned -14% over the past year.
  • BECN underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
BECN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Beacon Roofing Supply undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Beacon Roofing Supply to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Beacon Roofing Supply.

NasdaqGS:BECN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:BECN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.903 (1 + (1- 21%) (121.24%))
1.514
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.51
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.514 * 5.96%)
11.76%

Discounted Cash Flow Calculation for NasdaqGS:BECN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Beacon Roofing Supply is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:BECN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.76%)
2020 289.42 Analyst x7 258.97
2021 357.00 Analyst x1 285.84
2022 398.00 Analyst x1 285.15
2023 455.00 Analyst x1 291.69
2024 501.32 Est @ 10.18% 287.58
2025 541.15 Est @ 7.95% 277.77
2026 575.68 Est @ 6.38% 264.41
2027 606.11 Est @ 5.29% 249.10
2028 633.50 Est @ 4.52% 232.97
2029 658.73 Est @ 3.98% 216.77
Present value of next 10 years cash flows $2,650.26
NasdaqGS:BECN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $658.73 × (1 + 2.73%) ÷ (11.76% – 2.73%)
$7,497.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,497.24 ÷ (1 + 11.76%)10
$2,467.11
NasdaqGS:BECN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,650.26 + $2,467.11
$5,117.37
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,117.37 / 68.48
$74.73
NasdaqGS:BECN Discount to Share Price
Calculation Result
Value per share (USD) From above. $74.73
Current discount Discount to share price of $35.41
= -1 x ($35.41 - $74.73) / $74.73
52.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Beacon Roofing Supply is available for.
Intrinsic value
>50%
Share price is $35.41 vs Future cash flow value of $74.73
Current Discount Checks
For Beacon Roofing Supply to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Beacon Roofing Supply's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Beacon Roofing Supply's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Beacon Roofing Supply's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Beacon Roofing Supply's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:BECN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.04
NasdaqGS:BECN Share Price ** NasdaqGS (2019-07-19) in USD $35.41
United States of America Trade Distributors Industry PE Ratio Median Figure of 42 Publicly-Listed Trade Distributors Companies 16.3x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Beacon Roofing Supply.

NasdaqGS:BECN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:BECN Share Price ÷ EPS (both in USD)

= 35.41 ÷ -0.04

-795.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Beacon Roofing Supply is loss making, we can't compare its value to the US Trade Distributors industry average.
  • Beacon Roofing Supply is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Beacon Roofing Supply's expected growth come at a high price?
Raw Data
NasdaqGS:BECN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -795.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
44.6%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 0.96x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Beacon Roofing Supply, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Beacon Roofing Supply's assets?
Raw Data
NasdaqGS:BECN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.39
NasdaqGS:BECN Share Price * NasdaqGS (2019-07-19) in USD $35.41
United States of America Trade Distributors Industry PB Ratio Median Figure of 53 Publicly-Listed Trade Distributors Companies 1.59x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 1.79x
NasdaqGS:BECN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:BECN Share Price ÷ Book Value per Share (both in USD)

= 35.41 ÷ 26.39

1.34x

* Primary Listing of Beacon Roofing Supply.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Beacon Roofing Supply is good value based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess Beacon Roofing Supply's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Beacon Roofing Supply has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Beacon Roofing Supply expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Beacon Roofing Supply expected to grow at an attractive rate?
  • Beacon Roofing Supply's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Beacon Roofing Supply's earnings growth is expected to exceed the United States of America market average.
  • Beacon Roofing Supply's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:BECN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:BECN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 44.6%
NasdaqGS:BECN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.4%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15.1%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:BECN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:BECN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 8,233 535 296 1
2022-09-30 7,993 477 263 1
2021-09-30 7,646 435 191 1
2020-09-30 7,452 356 106 15
2019-09-30 7,197 302 46 15
NasdaqGS:BECN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,021 257 -3
2018-12-31 7,018 243 -2
2018-09-30 6,418 539 73
2018-06-30 5,772 240 78
2018-03-31 5,051 205 85
2017-12-31 4,496 197 148
2017-09-30 4,377 315 101
2017-06-30 4,261 120 103
2017-03-31 4,200 191 100
2016-12-31 4,153 154 103
2016-09-30 4,127 121 90
2016-06-30 3,740 172 73

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Beacon Roofing Supply's earnings are expected to grow significantly at over 20% yearly.
  • Beacon Roofing Supply's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:BECN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Beacon Roofing Supply Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BECN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 3.72 3.72 3.72 1.00
2022-09-30 3.32 3.32 3.32 1.00
2021-09-30 2.42 2.42 2.42 1.00
2020-09-30 1.43 2.00 0.60 7.00
2019-09-30 0.67 1.19 0.33 7.00
NasdaqGS:BECN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.04
2018-12-31 -0.02
2018-09-30 1.07
2018-06-30 1.18
2018-03-31 1.32
2017-12-31 2.38
2017-09-30 1.67
2017-06-30 1.72
2017-03-31 1.66
2016-12-31 1.73
2016-09-30 1.51
2016-06-30 1.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Beacon Roofing Supply will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Beacon Roofing Supply's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Beacon Roofing Supply has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Beacon Roofing Supply's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Beacon Roofing Supply does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Beacon Roofing Supply's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Beacon Roofing Supply's 1-year growth to the US Trade Distributors industry average as it is not currently profitable.
Earnings and Revenue History
Beacon Roofing Supply's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Beacon Roofing Supply Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BECN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,021.42 -3.04 1,263.78
2018-12-31 7,018.01 -1.61 1,263.34
2018-09-30 6,418.31 72.88 1,132.75
2018-06-30 5,772.42 78.04 1,014.01
2018-03-31 5,051.37 84.73 860.60
2017-12-31 4,496.47 148.03 753.11
2017-09-30 4,376.67 100.86 727.63
2017-06-30 4,261.17 103.13 718.65
2017-03-31 4,200.00 99.59 711.61
2016-12-31 4,152.81 103.23 685.05
2016-09-30 4,127.11 89.92 678.79
2016-06-30 3,740.47 73.33 628.55
2016-03-31 3,305.96 60.56 582.03
2015-12-31 2,895.61 56.49 506.58
2015-09-30 2,515.17 62.28 454.78
2015-06-30 2,453.93 55.68 450.50
2015-03-31 2,399.12 54.13 435.78
2014-12-31 2,370.82 51.80 432.40
2014-09-30 2,326.91 53.85 414.88
2014-06-30 2,283.98 57.04 403.71
2014-03-31 2,247.75 57.40 398.09
2013-12-31 2,279.14 69.36 388.69
2013-09-30 2,240.72 72.61 386.58
2013-06-30 2,155.28 73.09 377.16
2013-03-31 2,088.63 71.35 367.19
2012-12-31 2,067.52 74.66 356.85
2012-09-30 2,043.66 75.57 348.33

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Beacon Roofing Supply has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Beacon Roofing Supply used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • It is difficult to establish if Beacon Roofing Supply improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Beacon Roofing Supply's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Beacon Roofing Supply has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Beacon Roofing Supply's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Beacon Roofing Supply's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Beacon Roofing Supply is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Beacon Roofing Supply's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Beacon Roofing Supply's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Beacon Roofing Supply Company Filings, last reported 3 months ago.

NasdaqGS:BECN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,206.34 2,939.80 0.65
2018-12-31 2,273.37 3,031.34 18.42
2018-09-30 2,283.50 2,620.47 129.93
2018-06-30 2,237.45 3,012.49 27.55
2018-03-31 2,182.72 2,956.33 16.00
2017-12-31 1,852.34 2,037.99 63.83
2017-09-30 1,781.81 761.83 138.25
2017-06-30 1,400.89 1,213.47 33.06
2017-03-31 1,349.17 1,035.88 10.01
2016-12-31 1,349.84 1,102.72 73.27
2016-09-30 1,323.83 1,132.52 31.39
2016-06-30 1,269.65 1,190.16 36.54
2016-03-31 1,219.99 1,070.72 14.84
2015-12-31 1,211.15 1,094.73 32.21
2015-09-30 883.12 218.18 45.66
2015-06-30 852.45 291.80 17.59
2015-03-31 818.48 226.10 22.96
2014-12-31 829.79 249.15 23.34
2014-09-30 817.10 243.86 54.47
2014-06-30 793.61 313.26 26.41
2014-03-31 763.36 224.46 34.04
2013-12-31 772.67 225.55 56.40
2013-09-30 754.36 269.92 47.03
2013-06-30 721.85 277.37 26.38
2013-03-31 690.11 296.25 16.73
2012-12-31 684.20 291.40 34.03
2012-09-30 651.96 286.43 40.21
  • Beacon Roofing Supply's level of debt (133.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.5% vs 133.2% today).
  • Debt is not well covered by operating cash flow (8.8%, less than 20% of total debt).
  • Beacon Roofing Supply is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Beacon Roofing Supply's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Beacon Roofing Supply has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Beacon Roofing Supply dividends. Estimated to be 0% next year.
If you bought $2,000 of Beacon Roofing Supply shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Beacon Roofing Supply's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Beacon Roofing Supply's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:BECN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:BECN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.00 1.00
2020-09-30 0.00 1.00
2019-09-30 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Beacon Roofing Supply has not reported any payouts.
  • Unable to verify if Beacon Roofing Supply's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Beacon Roofing Supply's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Beacon Roofing Supply has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Beacon Roofing Supply's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Beacon Roofing Supply's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Beacon Roofing Supply afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Beacon Roofing Supply has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Isabella
COMPENSATION $3,336,233
AGE 63
TENURE AS CEO 8.5 years
CEO Bio

Mr. Paul M. Isabella has been the Chief Executive Officer and President of Beacon Roofing Supply, Inc. since January 01, 2011 and November 2007 respectively. Mr. Isabella served as the Chief Operating Officer of Beacon Roofing Supply, Inc. from November 2007 to December 31, 2010. He served as an Executive Vice President of Cooper Connection for Cooper Industries Ltd. from April 18, 2005 to January 2, 2007. He joined Cooper from Stanley Works, New Britain, CT. He served as Senior Vice President and Executive Officer of Global Operations with responsibility for all worldwide manufacturing operations, distribution, productivity improvement and customer service functions of Stanley Works, until April 15, 2005. Mr. Isabella served as Vice President of Operations for Stanley Works from October 18, 2001 to April 15, 2005. He has extensive background includes over 30 years of leadership positions at major US corporations where he had responsibility for operations, distribution and logistics, customer service, marketing, sales, strategic planning and supply chain management. He served as Vice President, European Manufacturing for GE's Power Controls business. Mr. Isabella as Vice President of Operations of GE Industrial Systems since January 1998 and General Manager Switchgear/Busway Operation since January 1995. Earlier, He served as Director of Worldwide Operations for Stanley Works Hand Tools division. Prior to joining Stanley Works in May 1999, Mr. Isabella began his career with General Electric Company in 1977 and worked in various GE businesses for 22 years. He has been a Director of Beacon Roofing Supply, Inc. since February 2011. He graduated from GE's Manufacturing Management Program. Mr. Isabella received BS degree from State University of New York at Cortland in 1977.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Paul's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Beacon Roofing Supply management team in years:

5.2
Average Tenure
52.5
Average Age
  • The average tenure for the Beacon Roofing Supply management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Isabella

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
63
TENURE
8.5 yrs

Joe Nowicki

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
57
TENURE
6.3 yrs

C. Swank

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
50
TENURE
0.5 yrs

Christopher Harrison

TITLE
Chief HR Officer & Executive VP
COMPENSATION
$1M
AGE
52
TENURE
4.8 yrs

Tom Schmitz

TITLE
Vice President & Chief Accounting Officer
AGE
51
TENURE
0.3 yrs

Christopher Nelson

TITLE
Chief Information Officer
TENURE
13 yrs

Ross Cooper

TITLE
Executive VP
COMPENSATION
$1M
AGE
53
TENURE
13 yrs

Brendan Daly

TITLE
Chief Supply Chain Officer & Executive VP
TENURE
5.7 yrs

David Wrabel

TITLE
VP & Chief Credit Officer
TENURE
1.5 yrs

Kent Gardner

TITLE
President of West Division
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the Beacon Roofing Supply board of directors in years:

4.8
Average Tenure
63.5
Average Age
  • The tenure for the Beacon Roofing Supply board of directors is about average.
Board of Directors

Bob Buck

TITLE
Chairman
COMPENSATION
$1M
AGE
71
TENURE
12.3 yrs

Paul Isabella

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
63
TENURE
8.4 yrs

Neil Novich

TITLE
Independent Director
COMPENSATION
$211K
AGE
64
TENURE
7 yrs

Richard Frost

TITLE
Independent Director
COMPENSATION
$216K
AGE
67
TENURE
7 yrs

Carl Berquist

TITLE
Independent Director
COMPENSATION
$224K
AGE
67
TENURE
3.1 yrs

Stu Randle

TITLE
Lead Independent Director
COMPENSATION
$223K
AGE
59

Doug Young

TITLE
Independent Director
COMPENSATION
$208K
AGE
56
TENURE
4.8 yrs

Alan Gershenhorn

TITLE
Independent Director
COMPENSATION
$206K
AGE
60
TENURE
4.2 yrs

Nate Sleeper

TITLE
Director
COMPENSATION
$177K
AGE
46
TENURE
1.5 yrs

Phil Knisely

TITLE
Director
COMPENSATION
$193K
AGE
65
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Beacon Roofing Supply individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Jun 19 Buy Clayton, Dubilier & Rice, Inc. Company 28. Jun 19 28. Jun 19 4,625,998 $34.17 $158,081,454
14. Jun 19 Buy Richard Frost Individual 13. Jun 19 13. Jun 19 11,754 $34.17 $401,634
21. May 19 Sell C. Swank Individual 17. May 19 17. May 19 -5,250 $38.14 $-200,250
14. Mar 19 Buy Clayton, Dubilier & Rice, Inc. Company 14. Mar 19 14. Mar 19 5,609,763 $33.31 $186,876,913
28. Nov 18 Buy Carl Berquist Individual 26. Nov 18 26. Nov 18 5,000 $33.05 $165,250
26. Nov 18 Buy Richard Frost Individual 21. Nov 18 21. Nov 18 10,675 $31.61 $337,429
26. Nov 18 Buy Robert McLaughlin Individual 21. Nov 18 21. Nov 18 7,000 $32.73 $229,110
26. Nov 18 Buy Christopher Harrison Individual 21. Nov 18 21. Nov 18 4,750 $31.40 $149,147
26. Nov 18 Buy Neil Novich Individual 21. Nov 18 21. Nov 18 16,900 $30.29 $497,828
26. Nov 18 Buy Paul Isabella Individual 21. Nov 18 21. Nov 18 3,200 $31.76 $101,635
17. Aug 18 Buy Philip Knisely Individual 16. Aug 18 16. Aug 18 6,000 $37.14 $222,865
10. Aug 18 Buy Clayton, Dubilier & Rice, Inc. Company 09. Aug 18 09. Aug 18 314,400 $39.00 $12,189,716
X
Management checks
We assess Beacon Roofing Supply's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Beacon Roofing Supply has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Beacon Roofing Supply (NASDAQ:BECN) A Risky Investment?

Check out our latest analysis for Beacon Roofing Supply What Is Beacon Roofing Supply's Debt? … Given this deficit is actually higher than the company's market capitalization of US$2.50b, we think shareholders really should watch Beacon Roofing Supply's debt levels, like a parent watching their child ride a bike for the first time. … Since Beacon Roofing Supply does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Are Insiders Buying Beacon Roofing Supply, Inc. (NASDAQ:BECN) Stock?

Beacon Roofing Supply Insider Transactions Over The Last Year. … In the last twelve months, the biggest single purchase by an insider was when Independent Director Richard Frost bought US$502k worth of shares at a price of US$42.58 per share. … That means that an insider was happy to buy shares at above the current price of US$38.87

Simply Wall St -

How Does Investing In Beacon Roofing Supply, Inc. (NASDAQ:BECN) Impact The Volatility Of Your Portfolio?

(NASDAQ:BECN), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

How Should Investors Feel About Beacon Roofing Supply, Inc.'s (NASDAQ:BECN) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Paul Isabella's Compensation Compare With Similar Sized Companies. … has a market cap of US$2.3b, and is paying total annual CEO compensation of US$3.3m.

Simply Wall St -

Is Now An Opportune Moment To Examine Beacon Roofing Supply, Inc. (NASDAQ:BECN)?

Beacon Roofing Supply, Inc. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Beacon Roofing Supply’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Investors Are Undervaluing Beacon Roofing Supply, Inc. (NASDAQ:BECN) By 27.23%

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Should You Worry About Beacon Roofing Supply, Inc.’s (NASDAQ:BECN) ROCE?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Need To Know: Beacon Roofing Supply, Inc. (NASDAQ:BECN) Insiders Have Been Buying Shares

So before you buy or sell Beacon Roofing Supply, Inc. … The Last 12 Months Of Insider Transactions At Beacon Roofing Supply. … Overall, Beacon Roofing Supply insiders were net buyers last year

Simply Wall St -

Is Beacon Roofing Supply, Inc.'s (NASDAQ:BECN) CEO Pay Fair?

How Does Paul Isabella's Compensation Compare With Similar Sized Companies. … is worth US$2.2b, and total annual CEO compensation is US$3.5m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$773k.

Simply Wall St -

Beacon Roofing Supply Inc (NASDAQ:BECN): Will The Growth Last?

The latest earnings release Beacon Roofing Supply Inc's (NASDAQ:BECN) announced in September 2018a

Simply Wall St -

Company Info

Description

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; drywall products; acoustic tiles; stone veneers, windows, doors, skylights, and gutters and downspouts; decking and railing, water proofing, and insulation products; air barriers; and concrete restoration 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, 2017, the company operated through a network of 549 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.

Details
Name: Beacon Roofing Supply, Inc.
BECN
Exchange: NasdaqGS
Founded: 1928
$2,424,769,224
68,476,962
Website: http://www.beaconroofingsupply.com
Address: Beacon Roofing Supply, Inc.
505 Huntmar Park Drive,
Suite 300,
Herndon,
Virginia, 20170,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS BECN Common Stock Nasdaq Global Select US USD 23. Sep 2004
DB OWY Common Stock Deutsche Boerse AG DE EUR 23. Sep 2004
Number of employees
Current staff
Staff numbers
8,356
Beacon Roofing Supply employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 02:53
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.