NasdaqGS:BLDR

Stock Analysis Report

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Executive Summary

Builders FirstSource, Inc., together with its subsidiaries, 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

Undervalued with solid track record.


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

2.0%

BLDR

-1.0%

US Building

-3.4%

US Market


1 Year Return

68.7%

BLDR

35.4%

US Building

29.4%

US Market

Return vs Industry: BLDR exceeded the US Building industry which returned 44.8% over the past year.

Return vs Market: BLDR exceeded the US Market which returned 36.6% over the past year.


Shareholder returns

BLDRIndustryMarket
7 Day2.0%-1.0%-3.4%
30 Day9.7%4.5%0.6%
90 Day20.4%13.2%6.3%
1 Year68.7%68.7%37.4%35.4%32.2%29.4%
3 Year100.1%100.1%65.0%51.8%51.3%41.7%
5 Year358.6%358.6%136.9%105.2%119.6%95.2%

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?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BLDR ($43.25) is trading below our estimate of fair value ($61.09)

Significantly Below Fair Value: BLDR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BLDR is good value based on its PE Ratio (16.1x) compared to the US Building industry average (23.2x).

PE vs Market: BLDR is good value based on its PE Ratio (16.1x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: BLDR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BLDR is overvalued based on its PB Ratio (4.4x) compared to the US Building industry average (3.4x).


Next Steps

Future Growth

How is Builders FirstSource forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

26.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDR's forecast earnings growth (26.2% per year) is above the savings rate (2%).

Earnings vs Market: BLDR's earnings (26.2% per year) are forecast to grow faster than the US market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BLDR's revenue (18.3% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: BLDR's revenue (18.3% 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 low in 3 years time (13.4%).


Next Steps

Past Performance

How has Builders FirstSource performed over the past 5 years?

33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLDR has high quality earnings.

Growing Profit Margin: BLDR's current net profit margins (3.7%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: BLDR has become profitable over the past 5 years, growing earnings by 33.9% per year.

Accelerating Growth: BLDR's earnings growth over the past year (41.5%) exceeds its 5-year average (33.9% per year).

Earnings vs Industry: BLDR earnings growth over the past year (41.5%) exceeded the Building industry 27.2%.


Return on Equity

High ROE: Whilst BLDR's Return on Equity (27.2%) 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 ($2.2B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: BLDR's short term assets ($2.2B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: BLDR's debt to equity ratio (138.8%) is considered high.

Reducing Debt: BLDR's debt to equity ratio has reduced from 1304.8% to 138.8% over the past 5 years.

Debt Coverage: BLDR's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: BLDR's interest payments on its debt are well covered by EBIT (5.1x 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?

3.2yrs

Average management tenure


CEO

M. Crow (52 yo)

3.17yrs

Tenure

US$5,002,152

Compensation

Mr. M. Chad Crow serves as a Director at BMC Stock Holdings, Inc. since January 01, 2021, He serves as Chief Executive Officer of Builders Firstsource, Inc. since January 1, 2018 and served as its Presiden...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD5.00M) is about average for companies of similar size in the US market ($USD6.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
M. Crow
Chief Executive Officer3.17yrsUS$5.00m0.076%
$ 6.8m
Peter Jackson
Executive VP & CFO4.33yrsUS$2.10mno data
Scott Robins
President of West Division3.08yrsUS$1.35m0.013%
$ 1.2m
David Rush
Executive Vice President of IMO Leader2.33yrsUS$1.45m0.015%
$ 1.4m
David Flitman
President & Directorno datano data0.15%
$ 13.5m
Jami Coulter
Senior VP & Chief Accounting Officer5.5yrsno data0.0073%
$ 659.6k
Michael Neese
Senior Vice President of Investor Relationsno datano datano data
Timothy Johnson
Executive VPno datano data0.012%
$ 1.1m
John Foley
Vice President of Human Resourcesno datano datano data
David Snyder
Executive Vice President of Supply Chainno datano datano data
Steve Herron
President of East Divisionno datano data0.0057%
$ 517.9k
Tim Page
Executive Vice President of Business Development & Digital Experienceno datano datano data

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: BLDR's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Flitman
President & Directorno datano data0.15%
$ 13.5m
Floyd Sherman
Director20.17yrsUS$1.29m0.051%
$ 4.6m
Mark Alexander
Directorno datano data0.012%
$ 1.1m
Cleveland Christophe
Independent Director15.5yrsUS$215.13k0.014%
$ 1.2m
Paul Levy
Independent Chairman of the Boardno dataUS$289.66k0.56%
$ 50.1m
Brett Milgrim
Independent Director22.17yrsUS$195.13k0.028%
$ 2.5m
Daniel Agroskin
Independent Director9.08yrsUS$190.55k0.012%
$ 1.1m
James O'Leary
Directorno datano data0.033%
$ 3.0m
Cory Boydston
Directorno datano data0.011%
$ 961.9k
Craig Steinke
Independent Director14.75yrsUS$205.13k0.051%
$ 4.6m
David Bullock
Directorno datano data0.048%
$ 4.3m
William Hayes
Independent Director1.42yrsUS$103.46k0.0032%
$ 290.5k

15.1yrs

Average Tenure

59yo

Average Age

Experienced Board: BLDR's board of directors are seasoned and experienced ( 15.1 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 been substantially diluted in the past year, with total shares outstanding growing by 77.8%.


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$9.023b
  • Shares outstanding: 206.43m
  • 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
BLDR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2005

Biography

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, r...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 23:09
End of Day Share Price2021/03/03 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.