Stock Under $10 with 50-100% upside potential - 14 Days FREE!

Builders FirstSource Inc.
BLDR : NASDAQ : Services

$6.78 -0.14 | -2.02%
Today's Range: 6.70 - 7.06
Avg. Daily Volume: 407,500
05/22/13 - 4:00 PM ET

Financial Analysis


BUILDERS FIRSTSOURCE's gross profit margin for the first quarter of its fiscal year 2013 has decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. BUILDERS FIRSTSOURCE has strong liquidity. Currently, the Quick Ratio is 1.82 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 55.04% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)319.7219.39
EBITDA ($mil)3.98-2.99
EBIT ($mil)1.21-5.84
Net Income ($mil)-11.81-19.19


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)117.67143.01
Total Assets ($mil)563.49495.32
Total Debt ($mil)361.53297.83
Equity ($mil)37.0682.44


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin20.3721.86
EBITDA Margin1.24-1.36
Operating Margin0.38-2.66
Sales Turnover2.081.69
Return on Assets-8.78-12.7
Return on Equity-126.55-75.93
Debt Q1 FY13 Q1 FY12
Current Ratio2.823.42
Debt/Capital0.910.78
Interest Expense12.513.11
Interest Coverage0.1-0.45


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)96.996.64
Div / share0.00.0
EPS-0.12-0.2
Book value / share0.380.85
Institutional Own % n/a n/a
Avg Daily Volume423966.0292686.0

Valuation


HOLD. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 18.20 indicates a significant premium versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 22.95. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, BUILDERS FIRSTSOURCE proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BLDR NM Peers 51.02   BLDR NM Peers 44.57

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

BLDR's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BLDR's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BLDR 22.82 Peers 31.69   BLDR NA Peers 0.62

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

BLDR's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BLDR 18.20 Peers 22.95   BLDR 24.25 Peers 82.70

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BLDR is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BLDR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BLDR 0.58 Peers 1.30   BLDR 40.12 Peers 11.69

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BLDR is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BLDR has a sales growth rate that significantly exceeds its peers.

 

 

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