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Builders FirstSource

Nasdaq:BLDR
Snowflake Description

Solid track record with adequate balance sheet.

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

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. The last earnings update was 73 days ago. More info.


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BLDR Share Price and Events
7 Day Returns
-1%
NasdaqGS:BLDR
-0.3%
US Building
0.8%
US Market
1 Year Returns
-6.2%
NasdaqGS:BLDR
3.9%
US Building
4.8%
US Market
BLDR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Builders FirstSource (BLDR) -1% 9.1% 19.9% -6.2% 28.6% 155.5%
US Building -0.3% 3.7% 6.5% 3.9% 10.7% 24.7%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • BLDR underperformed the Building industry which returned 3.9% over the past year.
  • BLDR underperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
BLDR
Industry
5yr Volatility vs Market

Value

 Is Builders FirstSource 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 Builders FirstSource 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 Builders FirstSource.

NasdaqGS:BLDR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.7%
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:BLDR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.138 (1 + (1- 21%) (95.19%))
1.665
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.67
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.665 * 5.96%)
12.66%

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

The calculations below outline how an intrinsic value for Builders FirstSource 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:BLDR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.66%)
2020 198.19 Analyst x5 175.92
2021 195.57 Est @ -1.32% 154.09
2022 195.36 Est @ -0.11% 136.64
2023 196.81 Est @ 0.74% 122.19
2024 199.45 Est @ 1.34% 109.92
2025 202.96 Est @ 1.76% 99.28
2026 207.12 Est @ 2.05% 89.94
2027 211.78 Est @ 2.25% 81.63
2028 216.86 Est @ 2.4% 74.20
2029 222.27 Est @ 2.5% 67.51
Present value of next 10 years cash flows $1,111.32
NasdaqGS:BLDR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $222.27 × (1 + 2.73%) ÷ (12.66% – 2.73%)
$2,300.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,300.44 ÷ (1 + 12.66%)10
$698.67
NasdaqGS:BLDR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,111.32 + $698.67
$1,809.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,809.99 / 115.61
$15.66
NasdaqGS:BLDR Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.66
Current discount Discount to share price of $16.84
= -1 x ($16.84 - $15.66) / $15.66
-7.6%

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

  • The current share price of Builders FirstSource is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Builders FirstSource's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Builders FirstSource's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:BLDR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.89
NasdaqGS:BLDR Share Price ** NasdaqGS (2019-07-15) in USD $16.84
United States of America Building Industry PE Ratio Median Figure of 31 Publicly-Listed Building Companies 18.23x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

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

** Primary Listing of Builders FirstSource.

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

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

= 16.84 ÷ 1.89

8.89x

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

  • Builders FirstSource is good value based on earnings compared to the US Building industry average.
  • Builders FirstSource is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Builders FirstSource's expected growth come at a high price?
Raw Data
NasdaqGS:BLDR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
5.9%per year
United States of America Building Industry PEG Ratio Median Figure of 26 Publicly-Listed Building Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:BLDR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.89x ÷ 5.9%

1.51x

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

  • Builders FirstSource is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Builders FirstSource's assets?
Raw Data
NasdaqGS:BLDR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.47
NasdaqGS:BLDR Share Price * NasdaqGS (2019-07-15) in USD $16.84
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.24x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:BLDR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 16.84 ÷ 5.47

3.08x

* Primary Listing of Builders FirstSource.

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

  • Builders FirstSource is overvalued based on assets compared to the US Building industry average.
X
Value checks
We assess Builders FirstSource'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 Building 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 Building industry average (and greater than 0)? (1 check)
  5. Builders FirstSource has a total score of 2/6, 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 Builders FirstSource expected to perform in the next 1 to 3 years based on estimates from 10 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
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Builders FirstSource expected to grow at an attractive rate?
  • Builders FirstSource's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Builders FirstSource's earnings growth is positive but not above the United States of America market average.
  • Builders FirstSource's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:BLDR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:BLDR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 5.9%
NasdaqGS:BLDR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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:BLDR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:BLDR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 7,694 314 209 9
2019-12-31 7,369 309 185 10
NasdaqGS:BLDR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,656 467 218
2018-12-31 7,725 283 205
2018-09-30 7,688 196 110
2018-06-30 7,448 86 77
2018-03-31 7,202 137 58
2017-12-31 7,034 179 39
2017-09-30 6,802 154 88
2017-06-30 6,669 114 174
2017-03-31 6,503 65 165
2016-12-31 6,367 158 144
2016-09-30 6,276 55 127
2016-06-30 5,806 128 -7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Builders FirstSource's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Builders FirstSource's revenue is expected to grow by 3% 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:BLDR 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 10 Analyst Estimates (S&P Global) See Below

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

NasdaqGS:BLDR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.80 1.94 1.69 6.00
2019-12-31 1.58 1.65 1.46 6.00
NasdaqGS:BLDR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.89
2018-12-31 1.79
2018-09-30 0.97
2018-06-30 0.68
2018-03-31 0.51
2017-12-31 0.34
2017-09-30 0.78
2017-06-30 1.55
2017-03-31 1.48
2016-12-31 1.30
2016-09-30 1.16
2016-06-30 -0.06

*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 Builders FirstSource will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Builders FirstSource'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.
Builders FirstSource has a total score of 1/6, 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 Builders FirstSource 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 Builders FirstSource's growth in the last year to its industry (Building).
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.
  • Builders FirstSource has delivered over 20% year on year earnings growth in the past 5 years.
  • Builders FirstSource's 1-year earnings growth exceeds its 5-year average (274.2% vs 49.2%)
  • Builders FirstSource's earnings growth has exceeded the US Building industry average in the past year (274.2% vs 24.3%).
Earnings and Revenue History
Builders FirstSource'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 Builders FirstSource Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BLDR 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 7,655.64 217.68 1,565.15
2018-12-31 7,724.77 205.19 1,553.97
2018-09-30 7,687.73 110.47 1,518.29
2018-06-30 7,448.17 76.89 1,480.53
2018-03-31 7,201.58 58.18 1,464.22
2017-12-31 7,034.21 38.78 1,438.09
2017-09-30 6,802.18 87.89 1,410.27
2017-06-30 6,669.23 173.61 1,400.07
2017-03-31 6,503.23 165.14 1,369.52
2016-12-31 6,367.28 144.34 1,365.41
2016-09-30 6,276.23 127.35 1,365.15
2016-06-30 5,806.33 -6.88 1,286.95
2016-03-31 4,590.55 -32.74 1,033.40
2015-12-31 3,564.43 -22.83 788.40
2015-09-30 2,505.31 -9.74 521.77
2015-06-30 1,664.15 7.76 326.19
2015-03-31 1,629.17 14.80 314.25
2014-12-31 1,604.10 18.15 306.79
2014-09-30 1,576.47 20.62 297.44
2014-06-30 1,544.49 24.84 287.53
2014-03-31 1,516.10 -34.07 280.13
2013-12-31 1,489.89 -42.37 271.78
2013-09-30 1,408.37 -57.98 260.85
2013-06-30 1,297.22 -83.22 247.16
2013-03-31 1,170.99 -46.90 233.11
2012-12-31 1,070.68 -54.42 222.90
2012-09-30 975.77 -60.02 211.54

*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.
  • Whilst Builders FirstSource has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Builders FirstSource used its assets more efficiently than the US Building industry average last year based on Return on Assets.
  • Builders FirstSource has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Builders FirstSource'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 Building 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.
Builders FirstSource has a total score of 5/6, 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 Builders FirstSource'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 Builders FirstSource's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Builders FirstSource is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Builders FirstSource's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Builders FirstSource'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 0.9x 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 Builders FirstSource Company Filings, last reported 3 months ago.

NasdaqGS:BLDR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 632.47 1,563.24 11.72
2018-12-31 596.34 1,544.85 10.13
2018-09-30 538.32 1,841.58 34.45
2018-06-30 461.47 1,968.21 13.20
2018-03-31 400.97 1,940.82 10.07
2017-12-31 376.21 1,784.42 57.53
2017-09-30 412.01 1,851.24 9.34
2017-06-30 367.11 1,900.74 6.93
2017-03-31 324.46 1,942.79 4.52
2016-12-31 309.62 1,802.05 14.45
2016-09-30 300.31 1,943.80 5.85
2016-06-30 169.12 1,938.36 6.19
2016-03-31 133.93 1,927.13 3.73
2015-12-31 149.20 1,951.67 65.06
2015-09-30 155.52 2,018.98 101.19
2015-06-30 48.14 408.87 40.15
2015-03-31 33.98 408.89 36.84
2014-12-31 40.20 374.90 17.77
2014-09-30 35.24 383.92 67.77
2014-06-30 24.55 353.94 34.54
2014-03-31 12.59 353.96 62.77
2013-12-31 15.37 353.97 54.70
2013-09-30 5.45 353.99 50.36
2013-06-30 -8.45 354.00 25.51
2013-03-31 37.06 361.53 117.67
2012-12-31 48.10 360.96 131.43
2012-09-30 58.86 298.49 90.68
  • Builders FirstSource's level of debt (249.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (2781.5% vs 249.7% today).
  • Debt is well covered by operating cash flow (29.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Builders FirstSource'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. Builders FirstSource has a total score of 4/6, 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 Builders FirstSource'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 Builders FirstSource dividends.
If you bought $2,000 of Builders FirstSource 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 Builders FirstSource's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Builders FirstSource'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:BLDR 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 10 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 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 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:BLDR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

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

  • Unable to perform a dividend volatility check as Builders FirstSource has not reported any payouts.
  • Unable to verify if Builders FirstSource's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Builders FirstSource's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Builders FirstSource 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.
X
Income/ dividend checks
We assess Builders FirstSource'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 Builders FirstSource afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Builders FirstSource 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 Builders FirstSource'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
M. Crow
COMPENSATION $4,921,797
AGE 51
TENURE AS CEO 1.5 years
CEO Bio

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, Inc. since November 6, 2014 until January 1, 2018 and has been its Director since October 31, 2017. Mr. Crow served as the Chief Financial Officer at Builders Firstsource, Inc. from November 2009 to November 14, 2016 and served as its Principal Accounting Officer from February 24, 2012 to September 2015. He served as Senior Vice President of Builders Firstsource, Inc. from November 2009 to November 6, 2014. He served as Vice President of Finance and Controller of Builders Firstsource, Inc. He spent four years at PriceWaterhouse. He is a C.P.A. and received his B.B.A. degree from Texas Tech University.

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

Average tenure and age of the Builders FirstSource management team in years:

3.3
Average Tenure
51.5
Average Age
  • The tenure for the Builders FirstSource management team is about average.
Management Team

M. Crow

TITLE
CEO, President & Director
COMPENSATION
$5M
AGE
51
TENURE
1.5 yrs

Don McAleenan

TITLE
Co-Founder
COMPENSATION
$2M
AGE
64
TENURE
21.5 yrs

Peter Jackson

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
47
TENURE
2.7 yrs

Scott Robins

TITLE
Senior VP & COO of West
COMPENSATION
$1M
AGE
52
TENURE
1.4 yrs

David Rush

TITLE
Senior VP & COO of East
COMPENSATION
$1M
AGE
57
TENURE
0.7 yrs

Jami Coulter

TITLE
Senior VP & Chief Accounting Officer
AGE
42
TENURE
3.8 yrs

Jennifer Pasquino

TITLE
Senior Vice President of Investor Relations

John Foley

TITLE
Vice President of Human Resources

Marcie Hyder

TITLE
VP & Corporate Controller
TENURE
7.3 yrs

Tom Keils

TITLE
Vice President of Internal Audit
TENURE
14.3 yrs
Board of Directors Tenure

Average tenure and age of the Builders FirstSource board of directors in years:

13.5
Average Tenure
62
Average Age
  • The average tenure for the Builders FirstSource board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Paul Levy

TITLE
Chairman of the Board
COMPENSATION
$300K
AGE
72

M. Crow

TITLE
CEO, President & Director
COMPENSATION
$5M
AGE
51
TENURE
1.8 yrs

Robert Griffin

TITLE
Independent Director
COMPENSATION
$240K
AGE
71
TENURE
14.1 yrs

Cleve Christophe

TITLE
Independent Director
COMPENSATION
$225K
AGE
73
TENURE
13.8 yrs

Craig Arthur Steinke

TITLE
Independent Director
COMPENSATION
$215K
AGE
62
TENURE
13.1 yrs

Brett Milgrim

TITLE
Independent Director
COMPENSATION
$205K
AGE
50
TENURE
20.5 yrs

Floyd Sherman

TITLE
Director
COMPENSATION
$1M
AGE
79
TENURE
18.5 yrs

David Barr

TITLE
Independent Director
COMPENSATION
$200K
AGE
56
TENURE
2.3 yrs

Dan Agroskin

TITLE
Independent Director
COMPENSATION
$200K
AGE
42
TENURE
7.4 yrs
Who owns this company?
Recent Insider Trading
  • Builders FirstSource individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. May 19 Sell Cleveland Christophe Individual 23. May 19 23. May 19 -6,000 $15.22 $-91,320
25. May 19 Sell Robert Griffin Individual 23. May 19 23. May 19 -11,133 $15.08 $-167,886
21. May 19 Sell Peter Jackson Individual 17. May 19 17. May 19 -7,800 $16.00 $-124,800
17. May 19 Sell David Rush Individual 07. May 19 07. May 19 -4,000 $16.42 $-65,680
15. May 19 Sell M. Crow Individual 13. May 19 13. May 19 -47,317 $15.84 $-749,501
14. May 19 Sell Craig Arthur Steinke Individual 10. May 19 10. May 19 -87,987 $16.31 $-1,435,068
09. May 19 Sell Floyd Sherman Individual 07. May 19 07. May 19 -149,159 $16.59 $-2,474,548
19. Dec 18 Sell Brett Milgrim Individual 14. Dec 18 14. Dec 18 -17,676 $11.18 $-197,618
12. Dec 18 Buy David Rush Individual 10. Dec 18 10. Dec 18 4,000 $11.73 $46,920
08. Nov 18 Sell Floyd Sherman Individual 06. Nov 18 06. Nov 18 -150,000 $13.79 $-2,068,500
07. Sep 18 Buy Paul Levy Individual 06. Sep 18 06. Sep 18 100,000 $15.98 $1,598,000
04. Sep 18 Buy David Barr Individual 31. Aug 18 31. Aug 18 60,000 $15.63 $937,800
14. Aug 18 Sell Cleveland Christophe Individual 14. Aug 18 14. Aug 18 -30,000 $16.07 $-482,100
14. Aug 18 Sell Robert Griffin Individual 10. Aug 18 10. Aug 18 -16,756 $17.15 $-287,365
X
Management checks
We assess Builders FirstSource'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. Builders FirstSource 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

Calculating The Fair Value Of Builders FirstSource, Inc. (NASDAQ:BLDR)

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $199.1m $199.5m $201.4m $204.4m $208.2m $212.6m $217.5m $222.8m $228.4m $234.3m Growth Rate Estimate Source Analyst x5 Est @ 0.2% Est @ 0.96% Est @ 1.49% Est @ 1.86% Est @ 2.12% Est @ 2.3% Est @ 2.43% Est @ 2.52% Est @ 2.58% Present Value ($, Millions) Discounted @ 12.5% $176.9 $157.6 $141.4 $127.6 $115.5 $104.9 $95.3 $86.8 $79.1 $72.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $1.2b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 12.5%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$234m × (1 + 2.7%) ÷ (12.5% – 2.7%) = US$2.5b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$2.5b ÷ ( 1 + 12.5%)10 = $758.39m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.92b.

Simply Wall St -

Is Builders FirstSource, Inc. (NASDAQ:BLDR) A High Quality Stock To Own?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Builders FirstSource: 34% = US$218m ÷ US$632m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Builders FirstSource Have A Good Return On Equity? … Combining Builders FirstSource's Debt And Its 34% Return On Equity Builders FirstSource clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 2.50.

Simply Wall St -

Why We Like Builders FirstSource, Inc.’s (NASDAQ:BLDR) 16% Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Builders FirstSource: 0.16 = US$389m ÷ (US$3.2b - US$738m) (Based on the trailing twelve months to March 2019.) So, Builders FirstSource has an ROCE of 16%. … What Are Current Liabilities, And How Do They Affect Builders FirstSource's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Why We Think Builders FirstSource, Inc. (NASDAQ:BLDR) Could Be Worth Looking At

NasdaqGS:BLDR Income Statement, May 20th 2019 Next Steps: For Builders FirstSource, I've put together three essential aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for BLDR’s future growth? … Take a look at our free research report of analyst consensus for BLDR’s outlook. … The intrinsic value infographic in our free research report helps visualize whether BLDR is currently mispriced by the market.

Simply Wall St -

Here's Why We Think Builders FirstSource (NASDAQ:BLDR) Is Well Worth Watching

In contrast to all that, I prefer to spend time on companies like Builders FirstSource (NASDAQ:BLDR), which has not only revenues, but also profits. … How Fast Is Builders FirstSource Growing. … It's no surprise, then, that I like to invest in companies with EPS growth.

Simply Wall St -

Do You Know What Builders FirstSource, Inc.'s (NASDAQ:BLDR) P/E Ratio Means?

To keep it practical, we'll show how Builders FirstSource, Inc.'s (NASDAQ:BLDR) P/E ratio could help you assess the value on offer. … Builders FirstSource has a P/E ratio of 7.87, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Many Insiders Sold Builders FirstSource, Inc. (NASDAQ:BLDR) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Builders FirstSource, Inc. … The Last 12 Months Of Insider Transactions At Builders FirstSource. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.

Simply Wall St -

Do Builders FirstSource, Inc.’s (NASDAQ:BLDR) Returns On Capital Employed Make The Cut?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Does Builders FirstSource, Inc.'s (NASDAQ:BLDR) P/E Ratio Signal A Buying Opportunity?

To keep it practical, we'll show how Builders FirstSource, Inc.'s (NASDAQ:BLDR) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Builders FirstSource's P/E ratio is 12.82. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Builders FirstSource Inc's (NASDAQ:BLDR) 21% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Builders FirstSource has a return on equity of 21% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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. The company operates through four segments: Northeast, Southeast, South, and West. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products under the Synboard brand name. The company also offers gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes; and siding, metal, and concrete products, such as vinyl, composite, and wood siding products, as well as exterior trims, other exteriors, metal studs, and cement products. In addition, it provides other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is headquartered in Dallas, Texas.

Details
Name: Builders FirstSource, Inc.
BLDR
Exchange: NasdaqGS
Founded: 1998
$1,946,827,992
115,607,363
Website: http://www.bldr.com
Address: Builders FirstSource, Inc.
2001 Bryan Street,
Suite 1600,
Dallas,
Texas, 75201,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS BLDR Common Stock Nasdaq Global Select US USD 22. Jun 2005
DB B1F Common Stock Deutsche Boerse AG DE EUR 22. Jun 2005
Number of employees
Current staff
Staff numbers
15,000
Builders FirstSource employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:59
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.