New Lifetime High Reached By Beacon Roofing Supply (BECN)
Trade-Ideas LLC identified Beacon Roofing Supply ( BECN) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Beacon Roofing Supply as such a stock due to the following factors:
- BECN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.5 million.
- BECN has traded 16,844 shares today.
- BECN is trading at a new lifetime high.
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More details on BECN: Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and non-residential roofing materials, and other complementary building materials to contractors, home builders, building owners, and other resellers. BECN has a PE ratio of 38. Currently there are 7 analysts that rate Beacon Roofing Supply a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Beacon Roofing Supply has been 561,100 shares per day over the past 30 days. Beacon Roofing Supply has a market cap of $2.5 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.46 and a short float of 6.4% with 6.19 days to cover. Shares are up 4.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates Beacon Roofing Supply as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- BECN's very impressive revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues leaped by 63.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $44.68 million or 11.16% when compared to the same quarter last year. In addition, BEACON ROOFING SUPPLY INC has also modestly surpassed the industry average cash flow growth rate of 5.18%.
- Compared to its closing price of one year ago, BECN's share price has jumped by 41.89%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- BEACON ROOFING SUPPLY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BEACON ROOFING SUPPLY INC increased its bottom line by earning $1.23 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus $1.23).
- You can view the full Beacon Roofing Supply Ratings Report.
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