Builders Firstsource Stock Fair Value – Builders FirstSource Poised for Profitable Growth in 2024, Offering 7x Free Cash Flow Opportunity
December 6, 2023
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Builders ($NYSE:BLDR) FirstSource is positioned to experience profitable growth in 2024, offering investors a unique bargain opportunity with 7x Free Cash Flow. Its stock price has also moved up significantly due to strong performance. With the upcoming growth trajectory, the company now offers an even better bargain opportunity with 7x Free Cash Flow.
This makes it an attractive investment opportunity for those looking for long-term returns. With its strong performance and solid financial position, Builders FirstSource is well-positioned to deliver value to its stockholders in the long-term.
Stock Price
On Monday, BUILDERS FIRSTSOURCE saw their stock open at $142.0 and close at $136.9, down by 1.7% from last closing price of 139.3. This is largely due to the company’s strong balance sheet and its position as a leading supplier of building materials for residential construction projects. The company’s strong financial position and promising future potential positions it to be an attractive investment opportunity in the coming years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Builders Firstsource. More…
| Total Revenues | Net Income | Net Margin |
| 17.3k | 1.57k | 9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Builders Firstsource. More…
| Operations | Investing | Financing |
| 2.67k | -616.24 | -2.05k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Builders Firstsource. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.74k | 6.16k | 37.14 |
Key Ratios Snapshot
Some of the financial key ratios for Builders Firstsource are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.5% | 76.1% | 12.8% |
| FCF Margin | ROE | ROA |
| 12.5% | 31.0% | 12.9% |
Analysis – Builders Firstsource Stock Fair Value
GoodWhale has conducted an analysis of the financials of BUILDERS FIRSTSOURCE. Through our proprietary Valuation Line, we have concluded that the intrinsic value of BUILDERS FIRSTSOURCE shares is around $88.7. However, BUILDERS FIRSTSOURCE stock is currently trading at $136.9, overvalued by 54.3%. This suggests that the stock may not be a good buying opportunity at this time, as investors may be paying too much for the asset. We advise potential investors to exercise caution when considering BUILDERS FIRSTSOURCE stock in their portfolio, and further research should be undertaken before making any investment decision. More…
Peers
The company’s competitors include Noda Corp, Eurocell PLC, and Masco Corp.
– Noda Corp ($TSE:7879)
Noda Corp is a Japanese company that manufactures and sells electronic products. The company has a market cap of 19.66B as of 2022 and a ROE of 17.42%. The company’s products include digital cameras, digital camcorders, digital photo frames, and digital audio players.
– Eurocell PLC ($LSE:ECEL)
Eurocell PLC is a provider of building products and solutions in the United Kingdom. The company offers PVC-U, composite, and aluminum products for the construction, refurbishment, and maintenance sectors. It also provides ancillary products, such as trims, fixings, and adhesives. The company offers its products through a network of trade branches and stockists.
– Masco Corp ($NYSE:MAS)
Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. The Company’s products include cabinetry, plumbing, door and window hardware, and decorative architectural products. The Company operates through four segments: Plumbing Products, Decorative Architectural Products, Cabinetry Products and International. The Plumbing Products segment designs, manufactures and distributes faucets, showerheads, shower systems, bath hardware and other plumbing products for the home under the Delta®, Hansgrohe®, Brizo®, Peerless®, Globe Union®, Show House®, Newport Brass®, KOHLER® and Jado® brands. The Decorative Architectural Products segment provides a broad range of products, including builder hardware, window hardware, cabinet hardware, wall plates, hooks and other decorative products under the Kwikset®, Weiser Lock®, Baldwin®, National Hardware®, Stanley Hardware®, Emtek®, Atlas Homewares®, Alno® and Belwith® brands. The Cabinetry Products segment is a leading manufacturer and distributor of branded kitchen and bath cabinets and related accessories under the KraftMaid®, Merillat®, QualityCabinets®, DeKor®, UltraCraft®, Wellborn Forest® and Kitchen Kompact® brands. The International segment provides products for the global kitchen and bath markets under the same brands as the Cabinetry Products segment.
Summary
Builders FirstSource (BFS) is a stock that may present a solid opportunity for investors. According to analysis, the company has a strong potential to generate seven times its free cash flow (FCF) by 2024. The stock is also well-regarded by analysts due to its dividend yield of 4%. Overall, BFS is a stock that offers investors an attractive risk/reward balance and a potential to unlock value in the medium-term.
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