Corporate Webpages Builders FirstSource Inc.
BuildersFirstsource, Inc. (BLDR) is a building materials
supplier that competes with the likes of Home Depot and Lowe's.
It operates its outlets mainly along the East Coast and certain
southern states but is expanding elsewhere throughout the
country as well. News on this company consists of a spate of
acquisitions in 2014-15 followed by a period when evidently it
"digested" them, and a recent very large acquisition of
ProSource, another competitor. Coincident with this news is an
exceptional amount of financing and refinancing to get the
capital to support its expansion and rapid growth.
The company was incorporated in Texas in 1998, went public in
2009 and was investigated by a couple of class action lawsuit
attorneys for possible violation of fiduciary duty that did not
benefit shareholders, however nothing apparently came out of the
investigation.
The company is very-well liked by most researchers including
Standard & Poor's which gave it its highest rating, along with
others giving "strong buys." Valu Engine is a major exception,
apparently because it sees possible lower earnings, although most
analysts project higher earnings. Analysts are favorable and
institutions are net acquirers, including Dimensional Fund
Advisors among the major holders which we regard as a good sign.
The company has a strong Zenith Index indicating strong
fundamentals. Cash flow is consider strong by McLean, which is
generally neutral on other companies.
What we did not like particularly was the company's website,
which did not appear to be used sufficiently to describe and
sell the company's products, nor did the company have any sort
of glitzy annual report and no CEO Letter to Shareholders, only
conference calls. But "Management's Discussion" in SEC reports
did appear well done to us.
One site reports the company's current profit margin as
negative, which caused us to give it a negative financial ratio
rating despite other strong fundamentals. Also, the debt load
is high. However, the company current to average p/e ratio suggests
it is a rare case of being under-valued in the current market, with
which Zack's agrees.
The company is large with $7 billion in annual revenues, which
is one reason the stock chart appears to us to be "sluggish."
Still there seems major growth opportunity.
Technical indicators for the stock chart suggest a consolidation
pattern which could break out on either side, so we would
suggest waiting for some better momentum confirmation of
direction before buying into this stock.
01-07-2020: Builders FirstSource Inc. (BLDR): Digesting Acquisitions
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Builders FirstSource, Inc. (BLDR) Exchange: Nasdaq
2001 Bryan Street
Suite 1600 Sector: Industrials
Dallas, TX 75201 Industry:Building Products & Equipment
Builders FirstSource, Inc. manufactures and supplies building materials,
manufactured components, and construction services to professional
homebuilders, sub-contractors, remodelers, and consumers in the United
States. The company operates through four segments: Northeast,
Southeast, South, and West. 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 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
headquartered in Dallas, Texas.
Last Trade: 25.41 52-Week Range: 26.07 - 11.80
Employees: 15,000 Avg.Volume: 1,222,993 Shares
Corporate Governance:
Pillar scores are Audit: 2; Board: 5; Shareholder Rights: 5; Compensation: 2.
(A lower number means less governance risk.)
EPS: 1.99 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Payout Ratio: 0.00
Key Statistics:
Trailing P/E: 12.67 Forward P/E (est.): 11.46
Target Price: 27.55
Qrtly Stock Price Growth (yoy): 103.28% Beta: 0.00
Qrtly S&P Index Growth (yoy): -6.50% Short Ratio: 3.33%
Qrtly Revenue Growth (yoy): 27.77% Shares Out: 115790000
Qrtly Earnings Growth (yoy): 6.50%
Book Value: 6.73 Debt/Equity: 212.78%
Price/Book Value: 3.75 Operating Profit Margin: 5.56%
Price/Sales: 0.40 Profit Margin: 3.17%
Market Cap: 2,900,000,000 Return on Equity: 35.29%
Enterprise Value: 4,530,000,000 Return on Assets: 7.85%
Operating Cash Flow: 633,560,000
Free Cash Flow: 430,200,000
Annual Income Statement: (All numbers in thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Total Revenue 7,724,771 7,034,209 6,367,284
Cost of Revenue 5,801,831 5,306,818 4,770,536
Gross Profit 1,922,940 1,727,391 1,596,748
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 1,553,972 1,442,288 1,360,412
Total Operating Expenses 1,553,972 1,442,288 1,360,412
Operating Income or Loss 368,968 285,103 236,336
Income from Continuing Operations:
Total Other Income/Expenses Net 0 0 0
Interest Expense 0 0 214,667
Income Before Taxes 260,755 91,929 21,669
Income Tax Expense 55,564 -122,672 0
Net Income from Continuing Op.s 205,191 38,781 144,341
Net Income Avail to Common Shares 205,191 38,781 144,341
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Net Income 205,191 38,781 144,341
Operating Activities:
Depreciation 97,906 92,993 109,793
Accounts Receivable 0 -75,870 -45,942
Changes in Liabilities -86,589 -85,769 -45,555
Inventories -5,425 -60,645 -33,965
Changes in other Oper'g Acts 181,419 116,121 115,565
Total Cash Flow f Operations 282,830 178,528 158,227
Investing Activities:
Capital Exenditures -101,411 -62,407 -42,662
Investments -101,411 -62,407 -42,662
Other Cash Flows fr Investing 0 0 0
Total Cash Flows from Investing -96,658 -59,426 -38,327
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock -4,895 -2,644 -1,092
Net Borrowings -1,898,312 -1,399,926 -1,774,517
Other Cash Flows fr Financing -134 -51,503 0
Total Cash Flows from Financing -233,578 -76,018 -170,514
Change in Cash & Cash Equiv. -47,406 43,084 -50,614
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Current Assets:
Cash & Cash Equivalents 10,127 57,533 14,449
Short Term Investments 0 0 0
Net Receivables 654,170 631,992 569,208
Inventory 596,896 601,547 541,771
Other Current Assets 43,921 33,564 34,772
Total Current Assets 1,305,114 1,277,230 1,155,878
Non-current Assets:
Long-Term Investments 22,152 22,870 22,701
Property, Plant & Equipt 1,060,200 964,154 925,433
Goodwill 740,411 740,411 740,411
Intangible Assets 103,154 132,567 159,373
Accumulated Amortization -390,125 -324,851 -269,332
Other Assets 22,152 22,870 22,701
Total Assets 2,932,309 3,006,124 2,909,887
Current Liabilities:
Accounts Payable 423,168 514,282 409,759
Taxes Payable 0 0 0
Other Current Liabilities 0 0 35,606
Total Current Liabilities 8,183,545 7,584,097 6,812,649
Long Term Debt 423,168 514,282 409,759
Deferred LT Liab. Charges 0 0 35,606
Total Liabilities 10,029,115 9,429,667 8,658,219
Stockholder Equity:
Common Stock 1,151 1,136 1,115
Retained Earnings 34,966 -171,693 -219,363
Other Stockhohlder Equity 0 0 0
Total Stockholder Equity 596,338 596,338 596,338
Net Tangible Assets 2,932,309 3,006,124 2,909,887
Builders FirstSource, Inc. (BLDR) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 2.2099 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 2.4433
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 0.6471
Sales < $1 Billion? 0.1295 Operating Margin < 7.5%? 1.3489
Balance Sheet Tests:
Debt/Equity < 0.40? 0.1880 Long-Term Debt Service: -3.0000
LTD Being Reduced? 3.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.0797 Working Capital >= 1.5? 3.0000
Leverage Ratio < 20%? 0.1689 Debt/Assets < 1? 1.8970
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 1.0000
Share Equity Increase: 2.0000 Market Cap.< 1.5 Billion? 0.5172
Intangibles < 3% Assets? 0.1043
Income Tests:
Profit Margin < 7.5%? 0.4227 EPS Annual Growth > 10%? 0.0189
Dividend Yield > 2.0%? 0.0000 EPS 3-yr Growth > 15? 0.1055
Enterprise Value/Revenue 0.3756 EPS Growth Consistent? 0.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 1.4558
EPS Qrtly Growth > 10%? 0.0154 Gross Pft / LTD > 1? 1.2440
Borrowing Int. Rate < 6%? 3.0000
Stock Performance Tests:
Volatility > 25%? 2.1895 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 0.0000 % Held by Institut. < 50? 0.5619
50 Da MA > 200 Da MA? 0.5183 % Held by Institut. > 30? 2.9660
52-Wk Change vs. S&P 500: 3.0000 Short Ratio > 5? 0.6660
Price/Book Value < 3? 0.7946 Short % of Float > 20? 0.1540
Return on Assets > 17%? 0.4618 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.4727 Positive Free Cash Flow? 3.0000
Positive Oper. Cash Flow? 3.0000 Price to C.F.Ratio < 14?: 2.9596
Cash Flow / Assets > 10%? 2.0907
BLDR Builders FirstSource, Inc. Overall Zenith Index: 1.3915
Financial Statements |
BUILDERS FIRSTSOURCE INC (BLDR) INCOME STATEMENT Fiscal year ends in December. USD in thousand 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Revenue 1,604,096 3,564,425 6,367,284 7,034,209 7,724,771 7,332,838 Cost of revenue 1,247,099 2,662,967 4,770,536 5,306,818 5,801,831 5,339,786 Gross profit 356,997 901,458 1,596,748 1,727,391 1,922,940 1,993,052 Operating expenses Sales, General and administrative 306,508 810,841 1,360,412 1,442,288 1,553,972 1,585,407 Restructuring, merger and acquisition 471 0 0 0 0 0 Other operating expenses -471 0 0 0 0 0 Total operating expenses 306,508 810,841 1,360,412 1,442,288 1,553,972 1,585,407 Operating income 50,489 90,617 236,336 285,103 368,968 407,645 Other income (expense) -30,820 -109,199 -214,667 -193,174 -108,213 -105,479 Income before taxes 19,669 -18,582 21,669 91,929 260,755 302,166 Provision for income taxes 1,111 4,387 -122,672 53,148 55,564 69,703 Net income from continuing operations 18,558 -22,969 144,341 38,781 205,191 232,463 Net income from discontinuing ops -408 138 0 0 0 0 Net income 18,150 -22,831 144,341 38,781 205,191 232,463 Net income available to common shareholders 18,150 -22,831 144,341 38,781 205,191 232,463 Earnings per share Basic 0.19 -0.22 1.30 0.34 1.79 2.01 Diluted 0.18 -0.22 1.27 0.34 1.76 1.99 Weighted average shares outstanding Basic 98,050 103,190 110,754 112,587 114,586 115,455 Diluted 100,522 103,190 113,585 115,597 116,554 116,746 ____________________________________________________________________________________________________________________________________________ BUILDERS FIRSTSOURCE INC (BLDR) BALANCE SHEET Fiscal year ends in December. USD in thousand 2014-12 2015-12 2016-12 2017-12 2018-12 Assets Current assets Cash Total cash 17,773 65,063 14,449 57,533 10,127 Receivables 142,204 528,544 569,208 631,992 654,170 Inventories 138,156 513,045 541,771 601,547 596,896 Other current assets 33,407 87,677 90,553 104,796 112,558 Total current assets 331,540 1,194,329 1,215,981 1,395,868 1,373,751 Non-current assets Property, plant and equipment Gross property, plant and equipment 227,996 922,598 925,433 964,154 1,060,200 Accumulated Depreciation -152,317 -188,269 -269,332 -324,851 -390,125 Net property, plant and equipment 75,679 734,329 656,101 639,303 670,075 Goodwill 139,774 739,625 740,411 740,411 740,411 Intangible assets 17,228 189,604 159,373 132,567 103,154 Deferred income taxes 0 0 115,320 75,105 22,766 Other long-term assets 18,844 24,151 22,701 22,870 22,152 Total non-current assets 251,525 1,687,709 1,693,906 1,610,256 1,558,558 Total assets 583,065 2,882,038 2,909,887 3,006,124 2,932,309 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 30,074 29,153 16,217 12,475 15,565 Accounts payable 75,868 365,347 409,759 514,282 423,168 Taxes payable 9,167 29,054 30,177 28,460 28,954 Accrued liabilities 40,361 186,210 183,763 160,722 174,452 Deferred revenues 4,665 38,173 38,448 46,894 53,816 Other current liabilities 12,032 87,301 76,333 35,521 35,304 Total current liabilities 172,167 735,238 754,697 798,354 731,259 Non-current liabilities Long-term debt 353,830 1,922,518 1,785,835 1,771,945 1,545,729 Deferred taxes liabilities 6,441 11,502 0 0 0 Other long-term liabilities 10,427 63,585 59,735 59,616 58,983 Total non-current liabilities 370,698 1,997,605 1,845,570 1,831,561 1,604,712 Total liabilities 542,865 2,732,843 2,600,267 2,629,915 2,335,971 Stockholders' equity Common stock 982 1,097 1,115 1,136 1,151 Additional paid-in capital 380,091 511,802 527,868 546,766 560,221 Retained earnings -340,873 -363,704 -219,363 -171,693 34,966 Total stockholders' equity 40,200 149,195 309,620 376,209 596,338 Total liabilities and stockholders' equity 583,065 2,882,038 2,909,887 3,006,124 2,932,309 ____________________________________________________________________________________________________________________________________________ BUILDERS FIRSTSOURCE INC (BLDR) Statement of CASH FLOW Fiscal year ends in December. USD in thousand 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Cash Flows From Operating Activities Net income 18,150 -22,831 144,341 38,781 205,191 232,463 Depreciation & amortization 9,519 58,280 109,793 92,993 97,906 96,986 Investment/asset impairment charges -274 4,399 6,006 197 0 0 Investments losses (gains) -456 4,563 0 0 0 0 Deferred income taxes 524 3,287 -124,787 49,104 51,823 52,541 Stock based compensation 6,157 6,848 10,549 13,508 14,420 13,871 Change in working capital -8,445 104,360 -45,555 -85,769 -86,589 234,409 Inventory -9,103 46,854 -33,965 -60,645 -5,425 103,477 Accounts payable -5,178 -45,286 36,585 65,764 -89,392 -2,687 Accrued liabilities 10,174 29,709 4,281 -23,341 22,168 26,482 Other working capital -4,338 73,083 -52,456 -67,547 -13,940 107,137 Other non-cash items 2,318 18,128 57,880 69,714 79 3,292 Net cash provided by operating activities 27,493 177,034 158,227 178,528 282,830 633,562 Cash Flows From Investing Activities Investments in property, plant, and equipmen -25,716 -43,811 -42,662 -62,407 -101,411 -100,655 Property, plant, and equipment reductions 213 4,275 8,305 2,981 4,753 8,337 Acquisitions, net -69,337 -1,468,511 -3,970 0 0 -33,931 Net cash used for investing activities -94,840 -1,508,047 -38,327 -59,426 -96,658 -126,249 Cash Flows From Financing Activities Debt issued 30,000 1,614,000 1,657,000 1,370,000 1,665,818 1,782,375 Debt repayment -67 -294,213 -1,774,517 -1,399,926 -1,898,312 -2,264,201 Common stock issued 0 111,309 0 0 0 0 Common stock repurchased -1,306 -986 -1,092 -2,644 -4,895 -10,432 Other financing activities 1,797 -51,807 -51,905 -43,448 3,811 -6,230 Net cash provided by (used for) financing 30,424 1,378,303 -170,514 -76,018 -233,578 -498,488 Net change in cash -36,923 47,290 -50,614 43,084 -47,406 8,825 Cash at beginning of period 54,696 17,773 65,063 14,449 57,533 34,446 Cash at end of period 17,773 65,063 14,449 57,533 10,127 43,271 Free Cash Flow Operating cash flow 27,493 177,034 158,227 178,528 282,830 633,562 Capital expenditure -25,716 -43,811 -42,662 -62,407 -101,411 -100,655 Free cash flow 1,777 133,223 115,565 116,121 181,419 532,907 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(BLDR) Builders FirstSource Inc.
2015 2016 2017 2018 2019
Annual Earnings: 0.00 -0.22 1.27 0.34 1.76
Average Price During Year: 11.36 10.96 14.92 18.17 16.60
P/E Ratio: 113.58 49.81 11.74 53.43 9.43
Average 5-Year P/E Ratio = 47.60
Current Price = 25.22
Previous 5 Quarter Earnings: 0.63 0.45 0.31 0.57 0.67
Current Annualized (Last Four Quarters) Earnings = 1.55
________
Average PE / Current PE = 2.93
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Ownership:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for BUILDERS FIRSTSOURCE INC.:
Symbol? BLDR
Total Months Available: 25
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
14.95 10.56 20.30 13.73 26.07 18.68
RANGE = 26.07 TO 10.56 Close = 25.41
CHANNEL = 18.68 TO 14.95 Degree = 2
Volatility = 14.68% Index = 2
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
6 out of 11 favorable, (positive opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor a downmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | + 1 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings | - 1 |
| Cash Flow | + 1 |
| Average to Current P/E | + 1 |
| Ratios | - 1 |
| Intrinsic Value DCF | - 1 |
| Fair Value Estimator | + 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| MACD Histogram Divergence | - 1 |
| Val Idea | + 1 |
| Stock Consultant | 0 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | - 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 8 |
Place 1,190 shares of Builders Firstsource, Inc. (BLDR) on the Active List.
