Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $13.64B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.37
• Revenue Growth: -4.08%
• EPS Growth: -24.71%
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 70
• Industry: Construction
• EPS (TTM): 9.04
• Shares Outstanding: 113,742,810
• 10 Day Avg. Volume: 1,981,828
• 30 Day Avg. Volume: 1,764,773
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.88
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $172.69
• Price Target Upside: 42.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

The overall stock score of 65 reflects Builders Firstsource's solid financial performance and strategic growth initiatives, balanced against bearish technical indicators and market challenges. Strong cash flow and profitability are key strengths, while technical analysis and market conditions present risks.

Positive Factors

Digital Sales Growth

BLDR's ability to generate $200 million incremental sales in 2025 through digital acts as a partial offset to challenges.

Strategic Acquisitions

The Alpine Lumber acquisition is seen as a terrific strategic fit that should meaningfully consolidate Builders Firstsource's share in the Colorado market and enhance its value-added product capabilities.

Negative Factors

Interest Rates Impact

Higher rates are weighing on BLDR, posing risk to the outlook for single-family and repair & remodel markets.

Tariff Uncertainty

Lumber tariffs add another level of uncertainty, with potential demand destruction from higher tariffs.

Weather and Natural Disasters

Wildfires & wintry weather have reduced sales by $80 million and are having an outsized impact on margins in the first quarter.

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 by supplying a wide array of building materials and manufactured products to the residential construction market. The company's key revenue streams include the sale of lumber and lumber sheet goods, manufactured products such as roof and floor trusses, wall panels, stairs, and engineered wood products, as well as windows, doors, and millwork. Additionally, Builders FirstSource offers value-added services like project management and installation services. The company capitalizes on strategic partnerships with suppliers and leverages economies of scale to maintain competitive pricing and secure a steady supply chain. These factors, combined with a strong distribution network, contribute significantly to its earnings.

Builders Firstsource Financial Statement Overview

Summary

Builders Firstsource demonstrates solid financial health with strong profitability and cash flow generation. Although revenue growth is slowing and stockholders' equity is declining, the company maintains stable margins and a balanced financial structure, showcasing effective cost management and strong cash flow.

Income Statement

Builders Firstsource has shown strong profitability with a consistent gross profit margin and healthy net profit margin over recent years. However, there has been a notable decline in revenue growth in the latest year, which suggests a slowdown in sales momentum. The EBIT and EBITDA margins remain solid, indicating effective cost management despite revenue fluctuations.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging debt. The equity ratio has been stable, indicating a solid capital structure. However, the decline in stockholders' equity needs attention as it may affect future financial flexibility.

Cash Flow

Builders Firstsource enjoys strong operating cash flow relative to net income, showcasing efficient cash generation capabilities. The free cash flow growth has been robust, although recent fluctuations in free cash flow could signal potential volatility in cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.40B	17.10B	22.73B	19.89B	8.56B
	Gross Profit
5.38B	6.01B	7.74B	5.85B	2.22B
	EBIT
1.60B	2.18B	3.77B	2.39B	543.85M
	EBITDA
1.60B	2.73B	4.27B	2.93B	660.42M
	Net Income Common Stockholders
1.08B	1.54B	2.75B	1.73B	313.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.62M	66.16M	80.44M	42.60M	423.81M
	Total Assets
10.58B	10.50B	10.60B	10.71B	4.17B
	Total Debt
632.18M	3.71B	3.49B	3.40B	1.91B
	Net Debt
478.56M	3.65B	3.41B	3.36B	1.48B
	Total Liabilities
6.29B	5.77B	5.63B	5.91B	3.02B
	Stockholders Equity
4.30B	4.73B	4.96B	4.80B	1.15B
Cash Flow		Free Cash Flow
1.49B	1.83B	3.26B	1.52B	147.99M
	Operating Cash Flow
1.87B	2.31B	3.60B	1.74B	260.07M
	Investing Cash Flow
-710.72M	-668.29M	-957.48M	-1.34B	-136.22M
	Financing Cash Flow
-1.07B	-1.65B	-2.60B	-780.11M	285.87M

Builders Firstsource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 120.9 is below the 20-day moving average (MA) of 125.36, below the 50-day MA of 136.63, and below the 200-day MA of 160.90, indicating a bearish trend. The MACD of -4.44 indicates Negative momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 31.64 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
AZEK	77 Outperform	$6.81B	46.46	10.73%	―	6.59%	30.00%
BECN	72 Outperform	$7.60B	21.55	18.96%	―	7.05%	―
LPX	72 Outperform	$6.25B	15.16	26.08%	1.18%	13.95%	138.97%
WMS	72 Outperform	$8.43B	18.19	34.07%	0.62%	3.67%	-5.03%
OC	71 Outperform	$11.50B	18.25	12.63%	1.92%	13.41%	-44.36%
BLDR	65 Neutral	$13.64B	13.37	23.88%	―	-4.08%	-24.71%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%

Builders Firstsource Corporate Events

Builders FirstSource Strengthens Board with New Appointments

In a recent development, Builders FirstSource announced the addition of Cheryl Ainoa and Maria Renz to its Board of Directors, effective March 1, 2025. Both bring substantial expertise in digital transformation and innovation from leading tech companies, which is expected to enhance the company’s strategic direction. Furthermore, the company reported its financial results for the fourth quarter and full year 2024, highlighting a decline in net sales, gross margin, and net income due to lower core organic sales and commodity deflation. Despite these challenges, Builders FirstSource remains committed to investing in value-added solutions and technology, positioning itself for resilience and future growth.