Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $13.22B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.32
• Revenue Growth: -6.39%
• EPS Growth: -42.36%
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 2.38
• Shares Outstanding: 110,546,930
• 10 Day Avg. Volume: 2,204,096
• 30 Day Avg. Volume: 1,957,831
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 10.12
• 1Y Price Target: $140.83
• Price Target Upside: 16.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 59 Neutral
• Price Target: $135.00 ▲(11.34% Upside)

The overall stock score of 58.8 reflects a mixed outlook for Builders Firstsource. Financial performance shows solid profitability but declining revenue and efficiency concerns. Technical indicators suggest caution with bearish momentum. Valuation is moderate, and the earnings call highlights both strategic advancements and market challenges. The absence of notable corporate events keeps the focus on existing financial and market dynamics.

Positive Factors

Digital and Technology Advancements

Significant growth in digital orders and quotes indicates strong adoption of technology solutions, enhancing customer engagement and operational efficiency, which is crucial for long-term competitive advantage.

M&A Expansion

Strategic acquisitions expand market presence and diversify revenue streams, strengthening the company's competitive position and growth potential in key regions.

Strong Free Cash Flow

Robust free cash flow generation provides financial flexibility for strategic investments and shareholder returns, supporting long-term business sustainability.

Negative Factors

Decline in Revenue

A significant decline in revenue indicates potential challenges in demand and market conditions, impacting the company's ability to sustain growth and profitability.

Commodity Deflation Impact

Commodity deflation pressures can erode pricing power and margins, posing a risk to profitability and financial performance in the medium term.

Decreased Gross Profit and EBITDA

Declining gross profit and EBITDA margins suggest challenges in cost management and operational efficiency, potentially affecting long-term profitability.

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 primarily through the sale of building materials and components to contractors, builders, and construction companies. The company has several key revenue streams, including the sale of lumber, panels, and other structural components, as well as millwork products such as doors and windows. Additionally, the company benefits from offering value-added services such as delivery and installation, which enhance customer relationships and contribute to repeat business. Strategic partnerships with large builders and ongoing investments in logistics and supply chain efficiency further bolster its profitability. The company's ability to leverage economies of scale and reduce costs through vertical integration also plays a significant role in its revenue generation.

Builders Firstsource Financial Statement Overview

Summary

Builders Firstsource shows a mixed financial performance. The company maintains solid profitability margins despite a declining revenue trend. Improvements in leverage are positive, but reduced returns on equity highlight areas for efficiency improvement. Cash flow remains robust despite declining growth, underlining the company's ability to generate cash.

Income Statement

The income statement shows a mixed performance. While there is a declining trend in Total Revenue from $22.7B in 2022 to $15.9B in the TTM (Trailing-Twelve-Months), the company maintains a solid Gross Profit Margin at approximately 31.6% for TTM, indicating good cost control. The Net Profit Margin for TTM is 4.7%, which is healthy but has decreased from 6.6% in 2022. Margins such as EBIT and EBITDA are also robust at 7.7% and 10.4% respectively in TTM, though they are lower than previous years, demonstrating a potential challenge in sustaining profitability.

Balance Sheet

The balance sheet reveals some concerns with leverage and equity. The Debt-to-Equity Ratio has improved to 0.15 in TTM from 0.73 in 2022, indicating reduced reliance on debt. However, Return on Equity (ROE) has decreased to 18.1% in TTM from 55.4% in 2022, signaling reduced efficiency in generating returns from equity. The Equity Ratio remains stable at around 36.4% in TTM, showing a balanced asset structure but highlighting potential risks if equity efficiency doesn't improve.

Cash Flow

Cash flow analysis indicates stability but with declining growth rates. The Operating Cash Flow to Net Income Ratio stands strong at 2.09 in TTM, suggesting effective cash generation relative to net earnings. However, Free Cash Flow has decreased, and the Free Cash Flow to Net Income Ratio is 1.57 in TTM, down from previous years, underscoring challenges in maintaining free cash flow growth.

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	1.80B	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	5.31B	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: 121.25
• 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 121.25 is below the 20-day moving average (MA) of 132.22, below the 50-day MA of 134.01, and below the 200-day MA of 132.65, indicating a bearish trend. The MACD of -5.01 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 17.62 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
AWI	80 Outperform	$8.38B	28.68	35.33%	0.63%	15.59%	23.46%
WMS	75 Outperform	$10.73B	24.91	21.03%	0.49%	0.24%	-12.68%
OC	69 Neutral	$11.80B	37.19	6.45%	1.89%	13.08%	-67.65%
SSD	68 Neutral	$6.97B	21.34	17.12%	0.67%	2.95%	0.76%
MAS	64 Neutral	$14.66B	18.60	-947.06%	1.73%	-2.73%	-8.31%
BLDR	59 Neutral	$13.22B	18.16	17.83%	―	-6.39%	-42.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.