Fundamental analysis: Builders FirstSource, Inc. (BLDR)

Awarener score: 8.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Poor) and growth (Excellent), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been growing at an excellent pace. It's been top tier when measured against peer companies.
Builders FirstSource, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks bottom tier against rivals.

Margins score: 6.3

BLDR profit margins -on goods and services sold- are usually meagre. They stand slightly worse than rival companies.
Business profit on sales tends to be good. It's below average when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain lacking compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still somewhat worse than similar companies.
Profits -before income taxes- are usually good considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be good when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 9.4

Builders FirstSource, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been impressive in relation to competitors.
In recent years, earnings -on operations- have been growing at a very good step, which has been better than most comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares great when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be in good shape compared to similar stocks.
In past years, profits -before income taxes- grew at an extremely fast speed. It was better than most rivals.
In the previous years, growth trend on total net profit has been extremely high, and more than average in relation to peer companies.
Earnings per share have grown at an extremely fast rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 5.0

BLDR had to pay some income taxes in relation to profits made in the past years. It's been slightly worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

Builders FirstSource, Inc. usually gets huge returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks more than average in relation to competitors.
In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 4.5

BLDR usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands great when measured against rival firms.
The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is below average when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks almost average when measured against competitors.

Balance Sheet score: 5.7

Builders FirstSource, Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be in a weak position compared to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat worse than rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
Usually, sales are on a month credit. It still ranks more than average in relation to peers.
Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as excellent in relation to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be better than most peers.
On average pays suppliers before a month since the purchase. It ranks below average when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's in good shape compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands slightly worse than rival firms.
Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks in good shape compared to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 7.3

Builders FirstSource, Inc. looks very cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still great when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company is somewhat indebted, loan repayment needs to be taken into account. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks top tier when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still excellent in relation to peer companies.

Total score: 6.8

Company at a glance: Builders FirstSource, Inc. (BLDR)

Sector, industry: Industrials, Building Products & Equipment

Market Cap: 15.23 billions

Revenues TTM: 20.93 billions

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. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior and exterior trims and custom products under the Synboard brand name. The company also offers gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes; and siding, metal, and concrete products, such as vinyl, composite, and wood siding products, as well as exterior trims, other exteriors, metal studs, and cement products. In addition, it provides other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.