Beacon Roofing Supply, Inc. Fundamental Analysis (NASDAQ: BECN)
Beacon Roofing Supply, Inc. (NASDAQ: BECN) shows weak financial fundamentals with a PE ratio of 21.45, profit margin of 3.70%, and ROE of 18.96%. The company generates $9.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BECN's fundamental strength across five key dimensions:
Efficiency Score
WeakBECN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBECN trades at attractive valuation levels.
Growth Score
ModerateBECN shows steady but slowing expansion.
Financial Health Score
ModerateBECN shows balanced financial health with some risks.
Profitability Score
ModerateBECN maintains healthy but balanced margins.
Key Financial Metrics
Is BECN Expensive or Cheap?
P/E Ratio
BECN trades at 21.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BECN's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Beacon Roofing Supply, Inc. at 3.89 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.01 times EBITDA. This is generally considered low.
How Well Does BECN Make Money?
Net Profit Margin
For every $100 in sales, Beacon Roofing Supply, Inc. keeps $3.70 as profit after all expenses.
Operating Margin
Core operations generate 6.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.96 in profit for every $100 of shareholder equity.
ROA
Beacon Roofing Supply, Inc. generates $5.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Beacon Roofing Supply, Inc. generates limited operating cash flow of $417.13M, signaling weaker underlying cash strength.
Free Cash Flow
Beacon Roofing Supply, Inc. generates weak or negative free cash flow of $291.22M, restricting financial flexibility.
FCF Per Share
Each share generates $4.68 in free cash annually.
FCF Yield
BECN converts 3.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How BECN Stacks Against Its Sector Peers
| Metric | BECN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.45 | 30.81 | Better (Cheaper) |
| ROE | 18.96% | 1163.00% | Weak |
| Net Margin | 3.70% | -20778.00% (disorted) | Weak |
| Debt/Equity | 1.74 | 0.39 | Weak (High Leverage) |
| Current Ratio | 1.97 | 24.24 | Neutral |
| ROA | 5.20% | -1311219.00% (disorted) | Weak |
BECN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Beacon Roofing Supply, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure