NYSE:FBM

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Foundation Building Materials

Executive Summary

Foundation Building Materials, Inc. distributes building products in the United States and Canada.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Foundation Building Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FBM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

FBM

4.9%

US Trade Distributors

1.8%

US Market


1 Year Return

-13.7%

FBM

-5.9%

US Trade Distributors

3.7%

US Market

Return vs Industry: FBM underperformed the US Trade Distributors industry which returned -5.9% over the past year.

Return vs Market: FBM underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

FBMIndustryMarket
7 Day-0.6%4.9%1.8%
30 Day32.7%13.0%5.6%
90 Day-15.7%-14.8%-7.4%
1 Year-13.7%-13.7%-4.0%-5.9%6.1%3.7%
3 Year-5.5%-5.5%7.3%2.4%28.3%19.8%
5 Yearn/a16.6%7.7%52.4%35.1%

Price Volatility Vs. Market

How volatile is Foundation Building Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Foundation Building Materials undervalued compared to its fair value and its price relative to the market?

28.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBM ($13.23) is trading below our estimate of fair value ($18.62)

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


Price To Earnings Ratio

PE vs Industry: FBM is good value based on its PE Ratio (11.1x) compared to the Trade Distributors industry average (14.5x).

PE vs Market: FBM is good value based on its PE Ratio (11.1x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FBM is overvalued based on its PB Ratio (1.4x) compared to the US Trade Distributors industry average (1.2x).


Next Steps

Future Growth

How is Foundation Building Materials forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBM's forecast earnings growth (19.1% per year) is above the savings rate (2.2%).

Earnings vs Market: FBM's earnings (19.1% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: FBM's revenue (5.1% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: FBM's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Foundation Building Materials performed over the past 5 years?

35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBM has high quality earnings.

Growing Profit Margin: FBM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FBM has become profitable over the past 5 years, growing earnings by 35.2% per year.

Accelerating Growth: FBM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FBM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-5.5%).


Return on Equity

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


Next Steps

Financial Health

How is Foundation Building Materials's financial position?


Financial Position Analysis

Short Term Liabilities: FBM's short term assets ($656.9M) exceed its short term liabilities ($239.8M).

Long Term Liabilities: FBM's short term assets ($656.9M) do not cover its long term liabilities ($881.2M).


Debt to Equity History and Analysis

Debt Level: FBM's debt to equity ratio (164.9%) is considered high.

Reducing Debt: FBM's debt to equity ratio has reduced from 211% to 164.9% over the past 5 years.

Debt Coverage: FBM's debt is well covered by operating cash flow (22.7%).

Interest Coverage: FBM's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Foundation Building Materials's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

5.3yrs

Average management tenure


CEO

Ruben Mendoza (55yo)

no data

Tenure

US$3,969,427

Compensation

Mr. Ruben D. Mendoza serves as the Chief Executive Officer and President of FBM Intermediate Holdings LLC. Mr. Mendoza founded Foundation Building Materials, Inc. in 2011 and serves as its Chief Executive  ...


CEO Compensation Analysis

Compensation vs Market: Ruben's total compensation ($USD3.97M) is above average for companies of similar size in the US market ($USD2.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ruben Mendoza
Presidentno dataUS$3.97m0.52% $2.9m
John Gorey
Chief Financial Officerno dataUS$1.47m0.097% $553.1k
Peter Welly
Chief Operating Officer7.33yrsUS$1.68m0.069% $395.1k
Onur Demirkaya
Chief Accounting Officer & Senior Controllerno datano data0.0097% $55.5k
John Moten
Vice President of Investor Relations2.67yrsno datano data
Richard Tilley
VP, General Counsel & Secretary4.33yrsUS$647.53k0.035% $199.3k
Alan Thompson
Senior Vice President of Sales & Marketing7.33yrsUS$649.91k0.054% $306.4k
Jim Carpenter
Vice President of Business Development5.33yrsUS$408.16k0.054% $308.6k

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: FBM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ruben Mendoza
Presidentno dataUS$3.97m0.52% $2.9m
Matthew Espe
Independent Director2.25yrsUS$188.29k0.040% $227.9k
Fareed Khan
Independent Director3.25yrsUS$178.29k0.032% $181.8k
Chase Hagin
Non-Independent Director2.25yrsno datano data
James Underhill
Independent Director3.25yrsUS$196.29k0.032% $181.8k
Chad Lewis
Non-Independent Director2.08yrsno datano data
Chris Meyer
Chairman2.83yrsno datano data
Maureen Harrell
Director0.25yrno datano data
Rafael Colorado
Non-Independent Director2.08yrsno datano data

2.3yrs

Average Tenure

48yo

Average Age

Experienced Board: FBM's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: FBM 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

Foundation Building Materials, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Foundation Building Materials, Inc.
  • Ticker: FBM
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$571.573m
  • Shares outstanding: 43.20m
  • Website: https://www.fbmsales.com

Number of Employees


Location

  • Foundation Building Materials, Inc.
  • 2520 Red Hill Avenue
  • Santa Ana
  • California
  • 92705
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBMNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2017
26FDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2017

Biography

Foundation Building Materials, Inc. distributes building products in the United States and Canada. It offers wallboard, suspended ceiling system, and metal framing products. The company also provides complementary and other products, tools, and accessories, such as wallboard accessories, stucco and finishing systems, safety accessories, fasteners, insulations, doors, and roofing products. It serves its products to commercial, residential, and other specialty contractors. The company was founded in 2011 and is headquartered in Santa Ana, California. Foundation Building Materials, Inc. is a subsidiary of Lone Star Fund IX (U.S.) L.P. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 05:26
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
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.