Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $11.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.19
• Revenue Growth: -6.44%
• EPS Growth: -48.84%
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.88
• Shares Outstanding: 110,580,580
• 10 Day Avg. Volume: 2,486,840
• 30 Day Avg. Volume: 1,874,515
• PEG Ratio: -0.64
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 11.31
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $134.26
• Price Target Upside: 26.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 7.05
• Revenue Forecast (FY): $15.29B

• Rating: 61 Neutral
• Price Target: $118.00 ▲(10.88% Upside)

Builders Firstsource's overall stock score reflects a challenging financial and market environment. The most significant factors are the mixed financial performance and bearish technical indicators. While the company has a strong balance sheet and reasonable valuation, declining revenues and profitability, along with negative market momentum, weigh heavily on the score.

Positive Factors

Strong Free Cash Flow

Strong free cash flow allows Builders FirstSource to reinvest in growth opportunities, enhance shareholder value through buybacks, and maintain financial flexibility.

Digital and Technology Advancements

Significant growth in digital orders and quotes indicates successful technology adoption, enhancing operational efficiency and customer engagement.

Strong Balance Sheet

A low debt-to-equity ratio suggests financial stability and the ability to withstand economic downturns, supporting long-term growth prospects.

Negative Factors

Declining Revenue and Profitability

Negative revenue growth and declining margins indicate challenges in maintaining sales momentum, potentially impacting future profitability.

Commodity Deflation Impact

Commodity deflation pressures, especially in OSB, can lead to reduced pricing power and margin compression, affecting long-term financial performance.

Housing Market Challenges

A decline in single-family housing starts suggests reduced demand for building materials, potentially impacting Builders FirstSource's revenue growth.

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 balance sheet is strong with low leverage and stable equity, but the income statement reflects declining revenue and profitability. Cash flow generation is positive but under pressure, indicating challenges in maintaining financial health.

Income Statement

Builders Firstsource's income statement shows a decline in revenue and profitability over the TTM period. The gross profit margin is healthy at 30.97%, but the net profit margin has decreased to 3.79%. Revenue growth has been negative, indicating challenges in maintaining sales momentum. The EBIT and EBITDA margins have also contracted, reflecting tighter operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.15 in the TTM period, significantly improved from previous years. Return on equity is solid at 13.84%, although it has decreased from prior periods. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, down by 14.17% in the TTM period. The operating cash flow to net income ratio is robust at 0.76, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio has decreased, indicating potential pressures on cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.65B	16.40B	17.10B	22.73B	19.89B	8.56B
Gross Profit	4.85B	5.38B	6.01B	7.74B	5.85B	2.22B
EBITDA	1.61B	1.60B	2.73B	4.27B	2.93B	660.42M
Net Income	593.92M	1.08B	1.54B	2.75B	1.73B	313.54M
Balance Sheet
Total Assets	11.43B	10.58B	10.50B	10.60B	10.71B	4.17B
Cash, Cash Equivalents and Short-Term Investments	296.16M	153.62M	66.16M	80.44M	42.60M	423.81M
Total Debt	652.41M	4.33B	3.71B	3.49B	3.40B	1.91B
Total Liabilities	7.11B	6.29B	5.77B	5.63B	5.91B	3.02B
Stockholders Equity	4.32B	4.30B	4.73B	4.96B	4.80B	1.15B
Cash Flow
Free Cash Flow	1.02B	1.49B	1.83B	3.26B	1.52B	147.99M
Operating Cash Flow	1.39B	1.87B	2.31B	3.60B	1.74B	260.07M
Investing Cash Flow	-1.34B	-710.72M	-668.29M	-957.48M	-1.34B	-136.22M
Financing Cash Flow	-88.69M	-1.07B	-1.65B	-2.60B	-780.11M	285.87M

Builders Firstsource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.42
• 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 106.42 is below the 20-day moving average (MA) of 116.17, below the 50-day MA of 124.47, and below the 200-day MA of 127.17, indicating a bearish trend. The MACD of -5.08 indicates Positive momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 5.19 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
SSD	74 Outperform	$6.96B	20.43	17.82%	0.65%	4.26%	8.52%
WMS	74 Outperform	$11.46B	25.14	27.09%	0.50%	2.48%	-6.92%
AWI	73 Outperform	$8.19B	27.20	38.03%	0.67%	15.10%	23.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	61 Neutral	$11.84B	20.34	13.56%	―	-6.44%	-48.84%
MAS	53 Neutral	$13.08B	16.14	―	2.00%	-3.62%	3.41%
OC	51 Neutral	$8.50B	―	-3.27%	2.68%	3.47%	-148.53%

Builders Firstsource Corporate Events

Builders FirstSource Reports Decline in Q3 2025 Earnings

Builders FirstSource, Inc., headquartered in Irving, Texas, is a leading provider of building materials and integrated homebuilding solutions for professional builders in new residential construction and repair and remodeling sectors across the United States.

Builders FirstSource Reports Q2 2025 Financial Results

Builders FirstSource, headquartered in Irving, Texas, is the largest U.S. supplier of building products, prefabricated components, and value-added services for new residential construction and repair and remodeling. The company operates in 43 states with approximately 585 locations, offering an integrated homebuilding solution.

Builders FirstSource Earnings Call: Balancing Optimism and Caution

Builders FirstSource’s recent earnings call painted a mixed picture, balancing optimism with caution. The company showcased its strong operational focus, digital integration advancements, and strategic acquisitions. However, these positives were countered by declining sales, reduced guidance, and challenges in key market segments, particularly due to commodity deflation and a softer housing market.