BECN Stock Intrinsic Value – Beacon Roofing Supply Receives High Risk Rating from InvestorsObserver Analysis for 2023
March 14, 2023
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InvestorsObserver has given Beacon Roofing Supply ($NASDAQ:BECN) a high risk rating when evaluating the potential risks of investing in the company for 2023. The InvestorsObserver proprietary scoring system takes into account a variety of factors such as the financial strength of the company, its debt levels, and future earnings expectations to determine a risk rating. Beacon Roofing Supply is a leading distributor of residential and commercial roofing products and building materials in the United States, Canada and Mexico. It offers a variety of products, such as asphalt shingles, metal roofing, insulation, skylights and accessories, among others.
However, the InvestorsObserver scoring system determined that Beacon Roofing Supply has a high risk rating due to the way it is structured and the volatility that could arise with its earnings in the future. Investors should also consider their own risk tolerance and financial goals when making an investment. While this high risk rating may cause caution for some investors, it could also present an opportunity for investors who are willing to take on additional risk in exchange for potential rewards.
Stock Price
On Monday, BEACON ROOFING SUPPLY stock opened at $60.9 but closed at $59.8, down by 3.1% from the previous closing price of 61.7. This drop in stock prices has been attributed to a high risk rating that InvestorsObserver has given the company for 2023, even though news about BEACON ROOFING SUPPLY, so far, has been mostly positive. While the exact reasons for this assessment remain unclear, investors remain cautious and are reevaluating their portfolios accordingly. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BECN. More…
| Total Revenues | Net Income | Net Margin |
| 8.43k | 379.6 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BECN. More…
| Operations | Investing | Financing |
| 401.1 | -395.6 | -162.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BECN. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6k | 3.7k | 35.88 |
Key Ratios Snapshot
Some of the financial key ratios for BECN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.9% | 68.2% | 8.3% |
| FCF Margin | ROE | ROA |
| 3.7% | 19.8% | 7.3% |
Analysis – BECN Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of BEACON ROOFING SUPPLY’s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of their share to be around $56.0. Currently, BEACON ROOFING SUPPLY stock is traded at $59.8, meaning it is fairly priced but slightly overvalued by 6.8%. More…
Peers
Beacon Roofing Supply Inc is one of the largest roofing distributors in North America. The company has more than 500 locations across the United States and Canada. The company was founded in 1928 and is headquartered in Herndon, Virginia. Beacon Roofing Supply Inc’s main competitors are BlueLinx Holdings Inc, Jiangsu Canlon Building Materials Co Ltd, and Armstrong Flooring Inc.
– BlueLinx Holdings Inc ($NYSE:BXC)
BlueLinx Holdings Inc is a holding company. Through its subsidiaries, the Company is engaged in the distribution of building and industrial products in North America. It offers its products to customers in the United States and Canada. The Company’s segments include Wholesale and Retail. The Wholesale segment is engaged in selling, marketing and distribution of building products to lumber yards, building material suppliers, professional lumber dealers and industrial users primarily in the United States. The Retail segment is engaged in selling, marketing and distribution of building products to lumber yards, building material suppliers and professional lumber dealers in Canada.
– Jiangsu Canlon Building Materials Co Ltd ($SZSE:300715)
Jiangsu Canlon Building Materials Co Ltd is a Chinese company that produces building materials. The company has a market cap of 5.15B as of 2022 and a Return on Equity of -0.94%. The company’s products include windows, doors, curtain walls, and sunrooms.
Summary
Beacon Roofing Supply recently received a high risk rating from InvestorsObserver Analysis for 2023. Despite the overall positive news surrounding the company, the stock price declined the same day. It is important for investors to carefully consider their investments in Beacon Roofing Supply, as the company poses a heightened risk of potential losses. Understanding the risks of investing in this industry is crucial to making an informed decision.
Investment analysis should include careful consideration of the company’s financial statement, competitive industry landscape, and market trends. Doing so will ensure that investors understand their risk exposure and can make a well-informed decision.
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