Builders FirstSource Inc

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BLDR : NASDAQ : Industrial Goods
$12.90 | %
Today's Range: 12.63 - 13.00
Avg. Daily Volume: 1,536,100
07/22/16 - 4:00 PM ET

Financial Analysis

BUILDERS FIRSTSOURCE's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. BUILDERS FIRSTSOURCE has weak liquidity. Currently, the Quick Ratio is 0.86 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 294.20% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1397.11370.99
EBITDA ($mil)58.979.37
EBIT ($mil)28.186.22
Net Income ($mil)-16.98-7.07

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)3.7336.84
Total Assets ($mil)2849.09625.46
Total Debt ($mil)1927.13408.89
Equity ($mil)133.9333.98

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin27.2423.42
EBITDA Margin4.222.52
Operating Margin2.021.68
Sales Turnover1.612.6
Return on Assets-1.142.31
Return on Equity-24.4743.56
Debt Q1 FY16 Q1 FY15
Current Ratio1.621.66
Interest Expense42.967.61
Interest Coverage0.660.82

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)110.1198.54
Div / share0.00.0
Book value / share1.220.34
Institutional Own % n/a n/a
Avg Daily Volume1530858.01428247.0


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 10.42 indicates a significant premium versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 15.65. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BLDR NM Peers 75.99   BLDR 11.31 Peers 16.42

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.


Discount. 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 is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
BLDR 8.34 Peers 21.85   BLDR NA Peers 1.00

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BLDR is trading at a significant discount to its peers.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BLDR 10.42 Peers 15.65   BLDR -372.72 Peers 405.80

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 significant 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BLDR 0.30 Peers 1.79   BLDR 181.77 Peers 9.39

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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