Builders FirstSource, Inc.
Builders FirstSource, Inc. Fundamental Analysis
Builders FirstSource, Inc. (BLDR) shows weak financial fundamentals with a PE ratio of 25.14, profit margin of 1.97%, and ROE of 6.92%. The company generates $14.5B in annual revenue with weak year-over-year growth of -7.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BLDR's fundamental strength across five key dimensions:
Efficiency Score
WeakBLDR struggles to generate sufficient returns from assets.
Valuation Score
ModerateBLDR shows balanced valuation metrics.
Growth Score
WeakBLDR faces weak or negative growth trends.
Financial Health Score
ModerateBLDR shows balanced financial health with some risks.
Profitability Score
WeakBLDR struggles to sustain strong margins.
Key Financial Metrics
Is BLDR Expensive or Cheap?
P/E Ratio
BLDR trades at 25.14 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BLDR's PEG of -0.38 indicates potential undervaluation.
Price to Book
The market values Builders FirstSource, Inc. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.63 times EBITDA. This is generally considered low.
How Well Does BLDR Make Money?
Net Profit Margin
For every $100 in sales, Builders FirstSource, Inc. keeps $1.97 as profit after all expenses.
Operating Margin
Core operations generate 4.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.92 in profit for every $100 of shareholder equity.
ROA
Builders FirstSource, Inc. generates $2.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Builders FirstSource, Inc. generates limited operating cash flow of $1.15B, signaling weaker underlying cash strength.
Free Cash Flow
Builders FirstSource, Inc. produces free cash flow of $843.52M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.84 in free cash annually.
FCF Yield
BLDR converts 12.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How BLDR Stacks Against Its Sector Peers
| Metric | BLDR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.14 | 25.86 | Neutral |
| ROE | 6.92% | 1270.00% | Weak |
| Net Margin | 1.97% | -33745.00% (disorted) | Weak |
| Debt/Equity | 1.32 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.76 | 10.46 | Neutral |
| ROA | 2.58% | -1496704.00% (disorted) | Weak |
BLDR outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Builders FirstSource, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
45.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
389.40%
Industry Style: Cyclical, Value, Infrastructure
High Growth