NasdaqGS:BLDR

Stock Analysis Report

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.

Rewards

PE ratio (12.6x) is below the US market (18.6x)

Earnings are forecast to grow 11.55% per year

Earnings grew by 110.4% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

BLDR

-1.0%

US Building

0.6%

US Market


1 Year Return

131.0%

BLDR

36.0%

US Building

20.8%

US Market

Return vs Industry: BLDR exceeded the US Building industry which returned 36% over the past year.

Return vs Market: BLDR exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

BLDRIndustryMarket
7 Day0.2%-1.0%0.6%
30 Day0.5%-0.9%2.5%
90 Day25.6%3.6%4.9%
1 Year131.0%131.0%38.0%36.0%23.5%20.8%
3 Year119.6%119.6%26.8%20.8%46.5%37.0%
5 Year280.8%280.8%53.5%33.6%64.6%46.5%

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?

12.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BLDR ($25.36) is trading above our estimate of fair value ($11.55)

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 (12.6x) compared to the Building industry average (23.8x).

PE vs Market: BLDR is good value based on its PE Ratio (12.6x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: BLDR is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BLDR is overvalued based on its PB Ratio (3.8x) compared to the US Building industry average (2.5x).


Next Steps

Future Growth

How is Builders FirstSource forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDR's forecast earnings growth (11.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BLDR's earnings (11.5% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: BLDR's revenue (5.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BLDR's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLDR's Return on Equity is forecast to be high in 3 years time (25.5%)


Next Steps

Past Performance

How has Builders FirstSource performed over the past 5 years?

47.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLDR has high quality earnings.

Growing Profit Margin: BLDR's current net profit margins (3.2%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: BLDR's earnings have grown significantly by 47.4% per year over the past 5 years.

Accelerating Growth: BLDR's earnings growth over the past year (110.4%) exceeds its 5-year average (47.4% per year).

Earnings vs Industry: BLDR earnings growth over the past year (110.4%) exceeded the Building industry -5.5%.


Return on Equity

High ROE: Whilst BLDR's Return on Equity (29.84%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Builders FirstSource's financial position?


Financial Position Analysis

Short Term Liabilities: BLDR's short term assets ($1.4B) exceed its short term liabilities ($863.7M).

Long Term Liabilities: BLDR's short term assets ($1.4B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: BLDR's debt to equity ratio (172.8%) is considered high.

Reducing Debt: BLDR's debt to equity ratio has reduced from 1087.6% to 172.8% over the past 5 years.

Debt Coverage: BLDR's debt is well covered by operating cash flow (47.1%).

Interest Coverage: BLDR's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: BLDR has a high level of physical assets or inventory.

Debt Coverage by Assets: BLDR's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BLDR's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

What is the CEO of Builders FirstSource's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

M. Crow (51yo)

1.9yrs

Tenure

US$4,921,797

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 ($USD4.92M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: M.'s compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: BLDR's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

56yo

Average Age

Experienced Board: BLDR's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$87,42612 Aug 19
Peter Jackson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares4,328
Max PriceUS$20.20
SellUS$1,757,52312 Aug 19
M. Crow
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares87,657
Max PriceUS$20.05
SellUS$2,367,70309 Aug 19
Donald McAleenan
EntityIndividual
Role
Top Key Executive
Co-Founder
Shares125,408
Max PriceUS$18.88
SellUS$45,79709 Aug 19
David Rush
EntityIndividual
Role
Senior Key Executive
Senior VP & COO of East
Shares2,351
Max PriceUS$19.48
SellUS$91,32025 May 19
Cleveland Christophe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$15.22
SellUS$167,88625 May 19
Robert Griffin
EntityIndividual
Shares11,133
Max PriceUS$15.08
SellUS$124,80021 May 19
Peter Jackson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares7,800
Max PriceUS$16.00
SellUS$65,68017 May 19
David Rush
EntityIndividual
Role
Senior Key Executive
Senior VP & COO of East
Shares4,000
Max PriceUS$16.42
SellUS$749,50115 May 19
M. Crow
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares47,317
Max PriceUS$15.84
SellUS$1,435,06814 May 19
Craig Steinke
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares87,987
Max PriceUS$16.31
SellUS$2,474,54809 May 19
Floyd Sherman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares149,159
Max PriceUS$16.59

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Don McAleenan (64yo)

    Co-Founder

    • Tenure: 21.9yrs
    • Compensation: US$1.65m
  • M. Crow (51yo)

    CEO, President & Director

    • Tenure: 1.9yrs
    • Compensation: US$4.92m
  • Tom Keils

    Vice President of Internal Audit

    • Tenure: 14.8yrs
  • Marcie Hyder

    VP & Corporate Controller

    • Tenure: 7.7yrs
  • Jami Coulter (42yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.3yrs
  • Jennifer Pasquino

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Peter Jackson (47yo)

    Senior VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$1.83m
  • Scott Robins (52yo)

    Senior VP & COO of West

    • Tenure: 1.8yrs
    • Compensation: US$1.36m
  • David Rush (57yo)

    Senior VP & COO of East

    • Tenure: 1.1yrs
    • Compensation: US$1.02m
  • John Foley

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • David Barr (56yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$199.97k
  • Floyd Sherman (79yo)

    Director

    • Tenure: 18.9yrs
    • Compensation: US$484.48k
  • Cleve Christophe (73yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$224.99k
  • Paul Levy (72yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$299.94k
  • Brett Milgrim (50yo)

    Independent Director

    • Tenure: 20.9yrs
    • Compensation: US$204.99k
  • Dan Agroskin (42yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$199.99k
  • Craig Steinke (62yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$214.99k
  • M. Crow (51yo)

    CEO, President & Director

    • Tenure: 1.9yrs
    • Compensation: US$4.92m
  • Brad Hayes (53yo)

    Director

    • Tenure: 0.2yrs
  • Janice Davis (56yo)

    Director

    • Tenure: 0.3yrs

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$2.936b
  • Shares outstanding: 115.79m
  • 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 Analysis2019/12/14 00:16
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.