NasdaqGS:BMCH

Stock Analysis Report

Executive Summary

BMC Stock Holdings, Inc. distributes lumber and building materials to new construction, and repair and remodeling contractors in the United States.

Rewards

PE ratio (17x) is below the US market (18.9x)

Earnings are forecast to grow 12.5% per year

Earnings grew by 7.8% over the past year

Risk Analysis

No risks detected for BMCH from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has BMC Stock Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BMCH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

BMCH

0.9%

US Trade Distributors

2.0%

US Market


1 Year Return

85.4%

BMCH

17.9%

US Trade Distributors

23.6%

US Market

Return vs Industry: BMCH exceeded the US Trade Distributors industry which returned 22.3% over the past year.

Return vs Market: BMCH exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

BMCHIndustryMarket
7 Day3.5%0.9%2.0%
30 Day4.3%-0.08%3.9%
90 Day7.8%9.7%12.0%
1 Year85.4%85.4%19.8%17.9%26.2%23.6%
3 Year75.5%75.5%29.4%23.8%53.2%43.3%
5 Yearn/a50.5%39.3%75.7%56.3%

Price Volatility Vs. Market

How volatile is BMC Stock Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BMC Stock Holdings undervalued compared to its fair value and its price relative to the market?

17.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BMCH ($30.02) is trading above our estimate of fair value ($16.31)

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


Price To Earnings Ratio

PE vs Industry: BMCH is good value based on its PE Ratio (17.5x) compared to the Trade Distributors industry average (17.5x).

PE vs Market: BMCH is good value based on its PE Ratio (17x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BMCH is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BMCH is overvalued based on its PB Ratio (2.1x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is BMC Stock Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMCH's forecast earnings growth (12.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BMCH's earnings (12.5% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: BMCH's revenue (5.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BMCH's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BMCH's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has BMC Stock Holdings performed over the past 5 years?

39.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMCH has high quality earnings.

Growing Profit Margin: BMCH's current net profit margins (3.3%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: BMCH's earnings have grown significantly by 39.7% per year over the past 5 years.

Accelerating Growth: BMCH's earnings growth over the past year (7.8%) is below its 5-year average (39.7% per year).

Earnings vs Industry: BMCH earnings growth over the past year (7.8%) exceeded the Trade Distributors industry -7.3%.


Return on Equity

High ROE: BMCH's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BMC Stock Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BMCH's short term assets ($945.5M) exceed its short term liabilities ($407.7M).

Long Term Liabilities: BMCH's short term assets ($945.5M) exceed its long term liabilities ($514.9M).


Debt to Equity History and Analysis

Debt Level: BMCH's debt to equity ratio (36.1%) is considered satisfactory.

Reducing Debt: BMCH's debt to equity ratio has reduced from 166.5% to 36.1% over the past 5 years.

Debt Coverage: BMCH's debt is well covered by operating cash flow (86.1%).

Interest Coverage: BMCH's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: BMCH's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is BMC Stock Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if BMCH'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 BMCH'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 BMC Stock Holdings's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Dave Flitman (55yo)

1.3yrs

Tenure

US$4,346,306

Compensation

Mr. David E. Flitman, also known as Dave, has been President, Chief Executive Officer and Director at BMC Stock Holdings Inc. since September 26, 2018. He was Executive Vice President, Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.35M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Insufficient data to compare Dave's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: BMCH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

57yo

Average Age

Experienced Board: BMCH's board of directors are considered experienced (4.1 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

BuyUS$16,615,15914 Nov 19
Coliseum Capital Management, LLC
EntityCompany
Shares595,989
Max PriceUS$28.07
SellUS$3,164,06914 Nov 19
Coliseum Capital Management, LLC
EntityCompany
Shares111,159
Max PriceUS$28.49
BuyUS$202,44508 May 19
David Flitman
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares9,000
Max PriceUS$22.49
BuyUS$67,92807 May 19
David Bullock
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares3,000
Max PriceUS$22.64
SellUS$56,49007 May 19
Michael Farmer
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Operational Excellence
Shares2,500
Max PriceUS$22.60
BuyUS$92,44313 Mar 19
David Bullock
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares5,000
Max PriceUS$18.49

Ownership Breakdown

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


Management Team

  • Dave Flitman (55yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$4.35m
  • Keith Costello (60yo)

    Senior VP of Sales & Los Angeles Market Manager

    • Tenure: 3.8yrs
  • Carey Phelps

    Director of Investor Relations

    • Tenure: 3.4yrs
  • Timothy Johnson (44yo)

    Executive VP

    • Tenure: 1yrs
  • Joyce Vonada

    Chief Information Officer

    • Tenure: 1.2yrs
  • Jim Major (47yo)

    Executive VP

    • Compensation: US$1.81m
  • Michael Badgley

    Executive Vice President of Company-Wide Operations

    • Mike Farmer (42yo)

      Executive Vice President of Operational Excellence

      • Compensation: US$931.58k
    • William Gay (48yo)

      Senior Vice President of Operations Finance & Credit

      • Tenure: 2.8yrs
    • Michael Neese

      Senior Vice President of Investor Relations

      • Tenure: 0.2yrs

    Board Members

    • Mark Alexander (60yo)

      Independent Director

      • Tenure: 2.4yrs
      • Compensation: US$201.46k
    • Carl Vertuca (72yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$207.79k
    • Jim O'Leary (56yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$210.79k
    • Cory Boydston (69yo)

      Independent Director

      • Tenure: 1.8yrs
    • Dave Bullock (54yo)

      Independent Chairman of the Board

      • Compensation: US$367.35k
    • Dave Flitman (55yo)

      CEO, President & Director

      • Tenure: 1.3yrs
      • Compensation: US$4.35m
    • Henry Lees-Buckley (58yo)

      Independent Director

      • Tenure: 2.4yrs
      • Compensation: US$189.55k
    • Jeff Rea (54yo)

      Director

      • Tenure: 4.1yrs
      • Compensation: US$189.10k
    • Dave Keltner (59yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$1.56m
    • Michael Miller (55yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$185.79k

    Company Information

    BMC Stock Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: BMC Stock Holdings, Inc.
    • Ticker: BMCH
    • Exchange: NasdaqGS
    • Founded: 1987
    • Industry: Trading Companies and Distributors
    • Sector: Capital Goods
    • Market Cap: US$2.056b
    • Shares outstanding: 66.75m
    • Website: https://www.buildwithbmc.com

    Number of Employees


    Location

    • BMC Stock Holdings, Inc.
    • 8020 Arco Corporate Drive
    • Suite 400
    • Raleigh
    • North Carolina
    • 27617
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BMCHNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 2015
    SB9DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2015

    Biography

    BMC Stock Holdings, Inc. distributes lumber and building materials to new construction, and repair and remodeling contractors in the United States. Its products comprise structural components, such as floor and roof trusses, wall panels, and engineered wood products; lumber and lumber sheet goods, including dimensional lumber, plywood, and oriented strand board products used in on-site house framing under the Ready-Frame brand; and millwork, doors, and windows comprising interior and exterior doors, windows, interior trims, custom millworks, moldings, stairs and stair parts, and cabinetry and other products. The company also sells other building products and services that consist of hardware, wood boards, gypsum, insulation, roofing, siding, and flooring; and offers design, product specification, installation, and installation management services. It primarily serves large-scale production homebuilders, custom homebuilders, single and multi-family builders, and professional repair and remodeling contractors. The company provides its products through a network of suppliers. BMC Stock Holdings, Inc. was founded in 1987 and is headquartered in Raleigh, North Carolina. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 00:26
    End of Day Share Price2020/01/17 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.