NasdaqGS:BLDR

Stock Analysis Report

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Executive Summary

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Builders FirstSource's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLDR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BLDR's weekly volatility has decreased from 11% to 6% over the past year.


Market Performance


7 Day Return

-5.6%

BLDR

-2.3%

US Building

0.7%

US Market


1 Year Return

39.7%

BLDR

15.1%

US Building

22.2%

US Market

Return vs Industry: BLDR exceeded the US Building industry which returned 17.4% over the past year.

Return vs Market: BLDR exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

BLDRIndustryMarket
7 Day-5.6%-2.3%0.7%
30 Day7.8%4.5%11.8%
90 Day16.8%11.7%8.6%
1 Year39.7%39.7%22.8%15.1%25.0%22.2%
3 Year75.0%75.0%41.0%29.4%49.4%39.5%
5 Year189.7%189.7%98.6%70.9%100.2%78.1%

Long-Term Price Volatility Vs. Market

How volatile is Builders FirstSource's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Builders FirstSource undervalued compared to its fair value and its price relative to the market?

19.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BLDR ($35.23) is trading above our estimate of fair value ($32.75)

Significantly Below Fair Value: BLDR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BLDR is good value based on its PE Ratio (19.1x) compared to the US Building industry average (23.4x).

PE vs Market: BLDR is good value based on its PE Ratio (19.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: BLDR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BLDR is overvalued based on its PB Ratio (4.1x) compared to the US Building industry average (2.7x).


Next Steps

Future Growth

How is Builders FirstSource forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDR's forecast earnings growth (18.5% per year) is above the savings rate (2.2%).

Earnings vs Market: BLDR's earnings (18.5% per year) are forecast to grow slower than the US market (21.8% per year).

High Growth Earnings: BLDR's earnings are forecast to grow, but not significantly.

Revenue vs Market: BLDR's revenue (5.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BLDR's revenue (5.2% 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 BLDR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Builders FirstSource performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLDR has high quality earnings.

Growing Profit Margin: BLDR's current net profit margins (2.8%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: BLDR has become profitable over the past 5 years, growing earnings by 36% per year.

Accelerating Growth: BLDR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BLDR had negative earnings growth (-7.5%) over the past year, making it difficult to compare to the Building industry average (11.8%).


Return on Equity

High ROE: Whilst BLDR's Return on Equity (21.33%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Builders FirstSource's financial position?


Financial Position Analysis

Short Term Liabilities: BLDR's short term assets ($2.1B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: BLDR's short term assets ($2.1B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: BLDR's debt to equity ratio (156.5%) is considered high.

Reducing Debt: BLDR's debt to equity ratio has reduced from 1298.3% to 156.5% over the past 5 years.

Debt Coverage: BLDR's debt is not well covered by operating cash flow (19%).

Interest Coverage: BLDR's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Builders FirstSource current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BLDR'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 BLDR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BLDR'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 BLDR'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?

3.5yrs

Average management tenure


CEO

M. Crow (52 yo)

2.92yrs

Tenure

US$5,002,152

Compensation

Mr. M. Chad Crow has been the President and CEO of Builders Firstsource, Inc. since November 6, 2014 and January 1, 2018 respectively. Mr. Crow served as the Chief Operating Officer of Builders Firstsource...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD5.00M) is about average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: M.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
M. Crow
CEO, President & Director2.92yrsUS$5.00m0.13%
$ 5.5m
Donald McAleenan
Co-Founder22.92yrsUS$1.68m0.12%
$ 5.0m
Peter Jackson
Senior VP & CFO4.08yrsUS$2.10m0%
$ 0
Scott Robins
Chief Operating Officer of West2.83yrsUS$1.35m0.024%
$ 981.9k
David Rush
Chief Operating Officer of East2.08yrsUS$1.45m0.027%
$ 1.1m
Jami Coulter
Senior VP & Chief Accounting Officer5.25yrsno data0.013%
$ 531.7k
Jennifer Pasquino
Senior Vice President of Investor Relationsno datano datano data
John Foley
Vice President of Human Resourcesno datano datano data
Greg Griggs
Senior Vice President of Manufacturingno datano datano data
Rob Beardall
Senior VP of Operations - Region 7no datano datano data
Tom Adams
Senior VP of Operations - Region 1no datano datano data
Wayne Canada
Senior VP of Operations - Region 2no datano datano data

3.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: BLDR's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Crow
CEO, President & Director2.92yrsUS$5.00m0.13%
$ 5.5m
David Barr
Independent Director3.67yrsUS$190.24k0.082%
$ 3.4m
Floyd Sherman
Director19.92yrsUS$1.29m0.090%
$ 3.7m
Cleveland Christophe
Independent Director15.25yrsUS$215.13k0.024%
$ 974.5k
Paul Levy
Independent Chairman of the Boardno dataUS$289.66k0.98%
$ 40.4m
Brett Milgrim
Independent Director21.92yrsUS$195.13k0.049%
$ 2.0m
Daniel Agroskin
Independent Director8.83yrsUS$190.55k0.021%
$ 846.1k
Craig Steinke
Independent Director14.5yrsUS$205.13k0.089%
$ 3.7m
William Hayes
Independent Director1.17yrsUS$103.46k0.0050%
$ 206.2k
Janice Davis
Independent Director1.33yrsUS$139.52k0.0060%
$ 245.3k

8.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BLDR's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Builders FirstSource, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Builders FirstSource, Inc.
  • Ticker: BLDR
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$4.115b
  • Shares outstanding: 116.81m
  • Website: https://www.bldr.com

Number of Employees


Location

  • Builders FirstSource, Inc.
  • 2001 Bryan Street
  • Suite 1600
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLDRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2005
B1FDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2005

Biography

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the U...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:43
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.