Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $14.74B
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.41
• Revenue Growth: -6.39%
• EPS Growth: -42.36%
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Construction
• EPS (TTM): 2.38
• Shares Outstanding: 110,514,820
• 10 Day Avg. Volume: 1,620,353
• 30 Day Avg. Volume: 2,223,963
• PEG Ratio: -1.20
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.82
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.90
• Enterprise Value/Ebitda: 1.80
• 1Y Price Target: $140.18
• Price Target Upside: 10.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 72 Outperform
• Price Target: $141.00 ▲(10.91%Upside)

Builders FirstSource benefits from strong financial health and strategic corporate actions, but faces challenges with revenue declines and market pressures. The stock is fairly valued, with mixed technical indicators.

Positive Factors

Financial Performance

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.

Market Position

Builders FirstSource is much more than just a building products distributor, with higher, stickier margins and reduced sensitivity to commodity prices than the Company had ~6+ years ago.

Technological Advantage

The company uses its technological edge for future outsized growth.

Negative Factors

Guidance Reduction

The company is reducing its 2025 guidance, implying that gross margins will likely face modest incremental pressure.

Housing Market Challenges

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

Macroeconomic 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. (BLDR) is a leading supplier and manufacturer of building materials, manufactured components, and construction services to professional contractors, sub-contractors, and consumers in the residential and commercial construction sectors. The company operates a network of distribution centers and manufacturing facilities across the United States, providing a diverse range of products including lumber, engineered wood, windows, doors, and other building products. Builders FirstSource is committed to delivering high-quality materials and services to its customers, supporting the construction of homes and commercial projects from foundation to finish.

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 solid profitability with strong margins, robust cash generation, and a healthy balance sheet. However, recent declines in revenue and net income present challenges.

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	15.94B	16.40B	17.10B	22.73B	19.89B	8.56B
Gross Profit	5.03B	5.38B	6.01B	7.74B	5.85B	2.22B
EBITDA	1.65B	1.60B	2.73B	4.27B	2.93B	660.42M
Net Income	756.32M	1.08B	1.54B	2.75B	1.73B	313.54M
Balance Sheet
Total Assets	11.46B	10.58B	10.50B	10.60B	10.71B	4.17B
Cash, Cash Equivalents and Short-Term Investments	87.02M	153.62M	66.16M	80.44M	42.60M	423.81M
Total Debt	644.53M	4.33B	3.71B	3.49B	3.40B	1.91B
Total Liabilities	7.29B	6.29B	5.77B	5.63B	5.91B	3.02B
Stockholders Equity	4.18B	4.30B	4.73B	4.96B	4.80B	1.15B
Cash Flow
Free Cash Flow	1.19B	1.49B	1.83B	3.26B	1.52B	147.99M
Operating Cash Flow	1.58B	1.87B	2.31B	3.60B	1.74B	260.07M
Investing Cash Flow	-1.45B	-710.72M	-668.29M	-957.48M	-1.34B	-136.22M
Financing Cash Flow	-110.77M	-1.07B	-1.65B	-2.60B	-780.11M	285.87M

Builders Firstsource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 127.13 is below the 20-day moving average (MA) of 129.63, above the 50-day MA of 119.87, and below the 200-day MA of 142.53, indicating a neutral trend. The MACD of 2.79 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 is Neutral, 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
LPX	73 Outperform	$6.29B	15.89	24.41%	1.19%	8.09%	55.08%
BLDR	72 Outperform	$14.74B	16.19	17.83%	―	-6.39%	-42.36%
OC	71 Outperform	$12.27B	51.79	11.93%	1.91%	16.16%	-77.11%
WMS	69 Neutral	$8.91B	19.93	31.26%	0.58%	1.04%	-10.78%
Sector *	67 Neutral	€2.79B	24.09	7.73%	2.99%	-0.69%	-32.34%

Builders Firstsource Corporate Events

Builders FirstSource Approves Board Declassification and Amendments

On May 27, 2025, Builders FirstSource, Inc. held its annual meeting where stockholders approved amendments to the company’s charter to declassify the Board of Directors and limit the liability of certain officers, aligning with Delaware law. These changes, effective upon filing, reflect a strategic shift in the company’s governance structure, potentially influencing its operational transparency and accountability. Additionally, the meeting saw the approval of the declassification of the Board, while a proposal to remove limits on the Board’s size was not passed.

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 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.