Beacon Roofing Supply Weathers Residential Decline with Insulation

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Beacon Roofing Supply ($NASDAQ:BECN) is a leading distributor of residential and commercial roofing materials in the United States. The company has been able to weather the recent declines in residential construction by diversifying its product offerings, including providing insulation products to its customers. This has enabled Beacon to maintain its strong financial position and protect itself from the decreases in residential construction seen in many parts of the country. By offering insulation products in addition to traditional roofing materials, Beacon has been able to expand its offerings to a broader customer base. This has provided the company with a more reliable and diversified revenue stream, as insulation sales have shown resilience throughout the downturn in housing. The company also has the benefit of providing insulation installation services, creating an additional stream of revenue for Beacon.

Beacon’s provides insulation products from leading manufacturers such as Owens Corning, Certainteed, and Johns Manville. This allows customers to choose from a wide variety of options, giving them the assurance of quality products backed by these leading manufacturers. The company also provides insulation installation services, taking the stress and hassle out of installation for homeowners and businesses. Overall, Beacon Roofing Supply has been able to weather the residential decline due to its diversified product offerings, including insulation products. This has enabled the company to maintain its strong financial position and provide its customers with quality products and services.

Share Price

Beacon Roofing Supply is weathering the residential decline in the US with its insulation business. This Wednesday, the company’s stock opened at $76.4 and closed at $77.2, representing a 1.5% increase from its previous closing price of 76.1. This solid performance is attributed to the steady rise in demand for insulation products as home builders and owners look to maximize their energy efficiency.

Beacon Roofing Supply has been able to leverage its brand recognition and industry knowledge to capitalize on this opportunity and drive further growth. It is expected that the company will continue to benefit from its insulation business in the months to come. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for BECN are shown below. More…

Analysis

At GoodWhale, we have conducted an analysis of BEACON ROOFING SUPPLY’s wellbeing. To start, our Star Chart shows that BEACON ROOFING SUPPLY is strong in growth, medium in asset, profitability and weak in dividend. Going further, our team has classified BEACON ROOFING SUPPLY as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. This means that investors who are looking for long-term investments may be interested in this company. In addition, our health score for BEACON ROOFING SUPPLY is 8/10, considering its cashflows and debt. This means that BEACON ROOFING SUPPLY is capable to safely ride out any crisis without the risk of bankruptcy. These factors make BEACON ROOFING SUPPLY a great potential investment for those looking to invest for the long-term. 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 (BEAC) is an attractive investment for those looking to capitalize on the current housing market. Despite residential construction declines, BEAC has managed to remain insulated from this decline thanks to the diversification of its business operations. The company has focused on all areas of the roofing supply industry, including commercial, re-roofing, and repair and remodeling.

This has allowed it to remain profitable despite the decrease in residential construction. Its strong financials and strong balance sheet provide investors with confidence that it can weather any downturn in the industry.