Builders FirstSource Inc

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BLDR : NASDAQ : Industrial Goods
$13.01 | %
Today's Range: 12.78 - 13.32
Avg. Daily Volume: 1,246,800
08/26/16 - 4:00 PM ET

Financial Analysis


BUILDERS FIRSTSOURCE's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. BUILDERS FIRSTSOURCE has weak liquidity. Currently, the Quick Ratio is 0.89 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 251.28% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1677.3461.52
EBITDA ($mil)114.4825.69
EBIT ($mil)83.9222.06
Net Income ($mil)29.443.58


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)6.1940.15
Total Assets ($mil)2965.19662.37
Total Debt ($mil)1938.36408.87
Equity ($mil)169.1248.14


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin26.7624.75
EBITDA Margin6.825.56
Operating Margin5.04.78
Sales Turnover1.962.51
Return on Assets-0.231.12
Return on Equity-4.0816.11
Debt Q2 FY16 Q2 FY15
Current Ratio1.651.62
Debt/Capital0.920.89
Interest Expense41.112.57
Interest Coverage2.041.75


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)110.8498.33
Div / share0.00.0
EPS0.260.03
Book value / share1.530.49
Institutional Own % n/a n/a
Avg Daily Volume1261798.01500490.0

Valuation


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 8.49 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 31.66. 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 32.63   BLDR 11.38 Peers 15.93

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BLDR 8.94 Peers 21.94   BLDR NA Peers 0.75

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 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BLDR 8.49 Peers 31.66   BLDR -240.00 Peers 181.60

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BLDR 0.25 Peers 1.86   BLDR 248.90 Peers 12.30

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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