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Builders FirstSource, Inc. (BLDR) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Builders FirstSource, Inc.

BLDRMarket cap $5.76BPrice $53.5

Country🇺🇸United States

SectorIndustrials

IndustryBuilding Products

Supplies lumber, building materials, and prefabricated components to homebuilders and contractors across the US. It's the largest player in a fragmented market, and roughly one in three new American homes goes up using its products.

In Bastion Portfolios?

52W Return-56%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-13%1

Revenue Forecast

Rev CAGR (1y)-6%1

Rev CAGR (3y)+1%2

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1-65%1

EPS Growth Y+2+33%9

EPS Growth Y+3+26%8

Quality

Margins

EBIT Margin3%2

Net Income Margin1%2

Free Cash Flow Margin4%4

Debt

Net Debt/EBITDA4.22

Efficiency

ROE3%2

ROA1%3

Earnings Stability55

GEAR+VERY WEAK4

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)156

P/E Ratio (Forward 3y)107

P/BV1.48

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd302

Yield

Free Cash Flow Yield11.1%9

Dividend Yieldna–

Momentum

Short term

1 month return-14%1

3 month return-28%1

YTD return-48%1

Mid term

Price vs 52wHigh41%1

1 year return-59%1

Long term

3 year return-55%1

5 year return-3%3

Risk Shield

Price Risk

Beta1.23

Volatility49%3

Free Cash Flow

Free Cash Flow Margin4%4

Free Cash Flow Yield11.1%9

Quality

ROCE5%3

Earnings Stability55

Net Debt/EBITDA4.22

02Growth

Is it actually growing, and how fast?

BLDRBuilders FirstSource

Revenue FY25$16.4B

GROWTH RATING↗

VERY WEAK8 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-13%1

Revenue, next 1Y-6%1

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-65%1

EPS growth, FY27E+33%9

EPS growth, FY28E+26%8

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

After shrinking over the last 3 years, revenue is set to grow 0.9%/yr from here.

Earnings are set to grow faster than sales (EPS about 26%/yr vs revenue 0.9%/yr), so margins should widen. One year dips: EPS falls 65% next year.

WEAKNESSES

Growth is the weak spot here, trailing 92% of companies worldwide.

Revenue fell 13%/yr over the last 3 years, behind 90% of companies worldwide.1/10

Revenue is set to grow 0.9%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK1 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-14%1

3-month return-28%1

YTD return-48%1

MID & LONG-TERM▾SCORE

% of 52-week high41%1

1-year return-59%1

3-year return-55%1

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-55% over three years and -2.8% over five), behind 80% of the market.

It's down 59% over the past year, now 59% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-14%), over three months (-28%) and so far this year (-48%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Builders. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

BLDRBuilders FirstSource

Revenue FY25$16.4B

GROWTH RATING↗

VERY WEAK8 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-13%1

Revenue, next 1Y-6%1

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-65%1

EPS growth, FY27E+33%9

EPS growth, FY28E+26%8

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

After shrinking over the last 3 years, revenue is set to grow 0.9%/yr from here.

Earnings are set to grow faster than sales (EPS about 26%/yr vs revenue 0.9%/yr), so margins should widen. One year dips: EPS falls 65% next year.

WEAKNESSES

Growth is the weak spot here, trailing 92% of companies worldwide.

Revenue fell 13%/yr over the last 3 years, behind 90% of companies worldwide.1/10

Revenue is set to grow 0.9%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK1 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-14%1

3-month return-28%1

YTD return-48%1

MID & LONG-TERM▾SCORE

% of 52-week high41%1

1-year return-59%1

3-year return-55%1

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-55% over three years and -2.8% over five), behind 80% of the market.

It's down 59% over the past year, now 59% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-14%), over three months (-28%) and so far this year (-48%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Builders. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community