Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $12.52B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.22
• 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: 2,336,505
• 30 Day Avg. Volume: 2,235,811
• 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: 1.46
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $131.95
• Price Target Upside: 16.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 7.05
• Revenue Forecast (FY): $15.29B

• Rating: 63 Neutral
• Price Target: $119.00 ▲(5.14% Upside)

Builders Firstsource's overall stock score reflects a combination of strong balance sheet fundamentals and strategic initiatives, tempered by declining sales and profitability. Technical indicators suggest potential bearish momentum, while valuation metrics are moderate. The earnings call provided mixed insights, with strategic positives countered by market challenges.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability and flexibility, allowing the company to invest in growth opportunities without excessive leverage.

Digital Tools and Technology Adoption

The adoption of digital tools enhances operational efficiency and scalability, positioning the company for sustained growth in a digital-first market.

Successful M&A Strategy

Strategic acquisitions expand product offerings and market presence, strengthening competitive position and driving long-term growth.

Negative Factors

Decline in Net Sales

A decline in net sales reflects challenges in market demand and could impact revenue stability, necessitating strategic adjustments to regain momentum.

Pressure on Margins

Decreasing margins indicate reduced profitability, which can limit reinvestment in growth initiatives and affect long-term financial health.

Challenges in Housing Market

Ongoing housing market challenges may suppress demand for building materials, impacting sales and necessitating strategic pivots to adapt to market conditions.

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 manufactured products to contractors, builders, and other construction-related businesses. Key revenue streams include sales of lumber, roofing, drywall, and other structural components, as well as manufactured goods like trusses and millwork. The company also benefits from strategic partnerships with suppliers and manufacturers, which enhance its product offerings and pricing competitiveness. Additionally, Builders FirstSource capitalizes on the construction industry's cyclical nature, often experiencing increased demand during housing booms, further contributing to its earnings.

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: Neutral
• Last Price: 113.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLDR, the sentiment is Neutral. The current price of 113.18 is above the 20-day moving average (MA) of 105.87, below the 50-day MA of 115.95, and below the 200-day MA of 123.76, indicating a neutral trend. The MACD of -2.43 indicates Negative momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 93.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLDR.

Builders Firstsource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMS	74 Outperform	$11.88B	26.05	27.09%	0.46%	2.48%	-6.92%
AWI	73 Outperform	$8.16B	27.09	38.03%	0.67%	15.10%	23.35%
SSD	69 Neutral	$7.06B	20.72	17.82%	0.65%	4.26%	8.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	63 Neutral	$12.52B	21.54	13.56%	―	-6.44%	-48.84%
MAS	53 Neutral	$13.08B	16.14	―	1.91%	-3.62%	3.41%
OC	51 Neutral	$9.31B	―	-3.27%	2.43%	3.47%	-148.53%

Builders Firstsource Corporate Events

Builders FirstSource Navigates Earnings Amid Market Challenges

The recent earnings call of Builders FirstSource painted a mixed picture, balancing strategic advancements with market challenges. While the company celebrated its strategic investments in digital tools and successful acquisitions, these positives were tempered by declines in net sales and profit margins, as well as persistent difficulties in the housing market.

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.