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.

Risks

  • Beacon Roofing Supply has significant price volatility in the past 3 months.

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

-0.8%

NasdaqGS:BECN

1.4%

US Trade Distributors

0.9%

US Market


1 Year Return

-22.9%

NasdaqGS:BECN

-16.8%

US Trade Distributors

0.3%

US Market

BECN underperformed the Trade Distributors industry which returned -16.8% over the past year.

BECN underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

BECNIndustryMarket
7 Day-0.8%1.4%0.9%
30 Day-13.8%-0.8%-1.9%
90 Day-20.3%-3.7%1.6%
1 Year-22.9%-22.9%-15.3%-16.8%2.6%0.3%
3 Year-34.7%-34.7%25.1%19.6%41.0%31.8%
5 Year6.3%6.3%11.2%3.4%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

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

Beacon Roofing Supply is good value based on assets compared to the US Trade Distributors industry average.


Next Steps

Future Growth

How is Beacon Roofing Supply expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

57.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Beacon Roofing Supply's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Beacon Roofing Supply's earnings are expected to grow significantly at over 20% yearly.

Beacon Roofing Supply's revenue growth is positive but not above the United States of America market average.

Beacon Roofing Supply's earnings growth is expected to exceed the United States of America market average.

Beacon Roofing Supply's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Beacon Roofing Supply will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Beacon Roofing Supply does not make a profit and their year on year earnings growth rate was negative 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.


Return on Equity

Beacon Roofing Supply has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Beacon Roofing Supply used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Beacon Roofing Supply's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Beacon Roofing Supply's level of debt (131.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39.4% vs 131.6% today).

Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).

Beacon Roofing Supply is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

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.

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

Unable to calculate sustainability of dividends as Beacon Roofing Supply has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

5.3yrs

Average management tenure


CEO

Paul Isabella (63yo)

8.6yrs

Tenure

US$3,336,233

Compensation

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 Offi ...


CEO Compensation Analysis

Paul's remuneration is about average for companies of similar size in United States of America.

Paul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.3yrs

Average Tenure

52.5yo

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.


Board Age and Tenure

4.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the Beacon Roofing Supply board of directors is about average.


Insider Trading

More shares have been bought than sold by Beacon Roofing Supply individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$158,081,45428 Jun 19
Clayton, Dubilier & Rice, Inc.
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, Inc.
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$497,82826 Nov 18
Neil Novich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,900
Max PriceUS$30.29
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$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
Chief Executive Officer
CEO, President & Director
Shares3,200
Max PriceUS$31.76

Ownership Breakdown


Management Team

  • Paul Isabella (63yo)

    CEO, President & Director

    • Tenure: 8.6yrs
    • Compensation: US$3.34m
  • Joe Nowicki (57yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$1.39m
  • C. Swank (50yo)

    Chief Operating Officer

    • Tenure: 0.6yrs
    • Compensation: US$1.10m
  • Ross Cooper (53yo)

    Executive VP

    • Tenure: 13.1yrs
    • Compensation: US$1.06m
  • Christopher Nelson

    Chief Information Officer

    • Tenure: 13.1yrs
  • Kent Gardner

    President of West Division

    • Tenure: 1.6yrs
  • Christopher Harrison (52yo)

    Chief HR Officer & Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$1.02m
  • Brendan Daly

    Chief Supply Chain Officer & Executive VP

    • Tenure: 5.8yrs
  • David Wrabel

    VP & Chief Credit Officer

    • Tenure: 1.6yrs
  • Tom Schmitz (51yo)

    Vice President & Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Bob Buck (71yo)

    Chairman

    • Tenure: 12.4yrs
    • Compensation: US$1.37m
  • Phil Knisely (65yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$192.66k
  • Neil Novich (64yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$211.44k
  • Richard Frost (67yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$215.78k
  • Paul Isabella (63yo)

    CEO, President & Director

    • Tenure: 8.6yrs
    • Compensation: US$3.34m
  • Nate Sleeper (46yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$177.03k
  • Stu Randle (59yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$223.28k
  • Carl Berquist (67yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$223.94k
  • Doug Young (56yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$208.28k
  • Alan Gershenhorn (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$205.78k

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$2.091b
  • 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 Analysis2019/08/19 23:58
End of Day Share Price2019/08/19 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.