Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $12.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.36
• Revenue Growth: -5.49%
• EPS Growth: -33.51%
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): 1.51
• Shares Outstanding: 110,514,820
• 10 Day Avg. Volume: 2,327,972
• 30 Day Avg. Volume: 1,969,102
• PEG Ratio: -0.99
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.41
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $144.92
• Price Target Upside: 31.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 67 Neutral
• Price Target: $119.00 ▲( 8.34% Upside)

Builders FirstSource's overall score reflects its strong financial performance and strategic corporate events. While the company faces technical and market challenges, its robust financial health and proactive management in securing growth opportunities support a favorable outlook.

Positive Factors

Productivity Savings

The company achieved ~$17M in productivity savings during the quarter through supply chain, fleet, and truss manufacturing initiatives with a full year target of $70-90M.

Technological Advantage

The company uses its technological edge for future outsized growth.

Negative Factors

EBITDA Drag

Ongoing margin normalization in multi-family segments is expected to cause a significant EBITDA drag.

Housing Demand

Weaker-than-expected new single-family housing demand is leading to more price competition and margin pressure.

Market Uncertainty

Macro uncertainty takes its toll, as what was previously shaping up to be a flattish year for new construction appears to be deteriorating.

Builders Firstsource Business Overview & Revenue Model

Company Description

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. 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 and exterior 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 based in Dallas, Texas.

How the Company Makes Money

Builders FirstSource generates revenue through the sale of building materials and manufactured components to construction professionals and retail customers. The company's key revenue streams include the distribution of lumber and lumber sheet goods, value-added manufactured products such as roof and floor trusses, wall panels, and engineered wood, as well as millwork, windows, and doors. Builders FirstSource also offers construction-related services, including design and installation. The company's revenue is significantly influenced by the demand for new residential construction and remodeling activities. Strategic partnerships with manufacturers and a robust supply chain network enhance its ability to serve a wide customer base efficiently. Additionally, Builders FirstSource benefits from economies of scale, leveraging its extensive distribution network to optimize operations and pricing strategies.

Builders Firstsource Financial Statement Overview

Summary

Builders FirstSource shows strong profitability and cash flow generation with solid EBIT and EBITDA margins. However, recent declines in revenue and net income create challenges. The balance sheet is healthy with low leverage.

Income Statement

The income statement shows solid profitability with a gross profit margin of 32.1% and a net profit margin of 5.7% for TTM (Trailing-Twelve-Months). However, both revenue and net income have declined compared to the previous year, indicating some challenges in maintaining top-line growth. The EBIT and EBITDA margins are strong, at 8.7% and 11.3%, respectively.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.15, which indicates low leverage. The equity ratio stands at 38.2%, demonstrating a stable capital structure. However, the return on equity is modest at 20.9%, which suggests room for improvement in generating higher returns for shareholders.

Cash Flow

The cash flow statement is robust, with a significant operating cash flow to net income ratio of 1.84, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also favorable at 1.42. Although free cash flow has decreased slightly in the TTM period, the company maintains solid cash flow metrics overall.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.17B	16.40B	17.10B	22.73B	19.89B	8.56B
	Gross Profit
5.20B	5.38B	6.01B	7.74B	5.85B	2.22B
	EBIT
1.41B	1.60B	2.18B	3.77B	2.39B	543.85M
	EBITDA
1.97B	1.60B	2.73B	4.27B	2.93B	660.42M
	Net Income Common Stockholders
915.38M	1.08B	1.54B	2.75B	1.73B	313.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.37M	153.62M	66.16M	80.44M	42.60M	423.81M
	Total Assets
11.45B	10.58B	10.50B	10.60B	10.71B	4.17B
	Total Debt
5.11B	4.33B	3.71B	3.49B	3.40B	1.91B
	Net Debt
4.99B	4.18B	3.65B	3.41B	3.36B	1.48B
	Total Liabilities
7.07B	6.29B	5.77B	5.63B	5.91B	3.02B
	Stockholders Equity
4.37B	4.30B	4.73B	4.96B	4.80B	1.15B
Cash Flow		Free Cash Flow
1.30B	1.49B	1.83B	3.26B	1.52B	147.99M
	Operating Cash Flow
1.69B	1.87B	2.31B	3.60B	1.74B	260.07M
	Investing Cash Flow
-1.47B	-710.72M	-668.29M	-957.48M	-1.34B	-136.22M
	Financing Cash Flow
-798.20M	-1.07B	-1.65B	-2.60B	-780.11M	285.87M

Builders Firstsource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLDR, the sentiment is Negative. The current price of 109.84 is below the 20-day moving average (MA) of 114.65, below the 50-day MA of 119.68, and below the 200-day MA of 155.78, indicating a bearish trend. The MACD of -2.33 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 7.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLDR.

Builders Firstsource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZEK	77 Outperform	$7.16B	48.23	10.62%	―	5.93%	3.50%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
LPX	72 Outperform	$6.37B	16.08	24.41%	1.16%	8.09%	55.08%
OC	71 Outperform	$11.49B	48.52	11.93%	1.91%	16.16%	-77.11%
WMS	69 Neutral	$9.19B	20.56	31.26%	0.58%	1.04%	-10.78%
BLDR	67 Neutral	$12.14B	14.10	19.62%	―	-5.49%	-33.51%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%

Builders Firstsource Corporate Events

Builders FirstSource Secures New $2.2 Billion Credit Facility

On May 20, 2025, Builders FirstSource, Inc. replaced its existing $1,800 million revolving credit facility with a new $2,200 million facility, extending the maturity date to May 20, 2030. This strategic move, facilitated by Bank of America, aims to enhance the company’s financial flexibility and potentially improve its market positioning by securing more favorable borrowing terms and conditions, which could have significant implications for its operational capabilities and stakeholder interests.

The most recent analyst rating on (BLDR) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Builders Firstsource stock, see the BLDR Stock Forecast page.

Builders FirstSource Completes $750M Senior Notes Offering

On May 8, 2025, Builders FirstSource completed a $750 million offering of 6.750% senior notes due 2035, which was a $250 million increase from the previously announced size. The proceeds from this offering were used to repay outstanding indebtedness under the company’s senior secured ABL facility, enhancing its financial positioning by addressing its debt obligations.

Builders FirstSource Announces $500M Senior Notes Offering

On May 5, 2025, Builders FirstSource announced its intention to offer $500 million in senior unsecured notes due 2035, subject to market conditions. The proceeds from this offering are intended to repay outstanding indebtedness under the company’s ABL Facility. Additionally, Builders FirstSource plans to amend its senior secured ABL facility to increase commitments and extend the maturity date, although these plans are not contingent on the completion of the notes offering. This strategic financial maneuver aims to strengthen the company’s financial flexibility and operational capacity.

Builders FirstSource Releases 2025 CSR Report

On April 30, 2025, Builders FirstSource released its 2025 Corporate Social Responsibility report, showcasing its commitment to sustainability and safety. The report highlights achievements such as a 10% reduction in the total recordable incident rate, significant charitable contributions, and sustainable sourcing practices. These efforts reflect the company’s dedication to a people-first culture and its ongoing transformation of the homebuilding industry to create a lasting impact.