BECN Intrinsic Value – Thrivent Financial reduces stake in Beacon Roofing Supply by 11.8% in Q2
September 27, 2024
🌥️Trending News
BEACON ROOFING SUPPLY ($NASDAQ:BECN) is a leading distributor of residential and commercial roofing materials, with operations across the United States and Canada. The company offers a wide range of roofing products, including shingles, metal roofing, and waterproofing systems, to contractors and home builders. This news may come as a surprise to some investors, as Thrivent has been a major shareholder in BEACON ROOFING SUPPLY for several years. While it is unclear why Thrivent decided to reduce its stake in BEACON ROOFING SUPPLY, some analysts speculate that it may be a strategic move to reallocate funds into other investments. Despite this decrease in ownership by Thrivent, BEACON ROOFING SUPPLY continues to be an attractive investment opportunity for many investors.
The company has a strong track record of revenue growth and profitability, and it is well-positioned to benefit from the ongoing demand for roofing materials in the construction industry. In conclusion, while Thrivent Financial for Lutherans has reduced its stake in BEACON ROOFING SUPPLY by 11.8% in the second quarter, the company remains a top player in the roofing industry and a promising investment for those looking to diversify their portfolio. As always, it is important for investors to conduct their own research and consult with a financial advisor before making any investment decisions.
Analysis – BECN Intrinsic Value
Hi there! As a financial analysis company, we at GoodWhale have taken a deep dive into BEACON ROOFING SUPPLY’s financials to determine the fair value of their stock. We have found that the fair value of BEACON ROOFING SUPPLY share is approximately $71.7, based on our proprietary Valuation Line. This calculation takes into account various financial factors such as revenue growth, profitability, and market trends. At the current market price of $84.85, BEACON ROOFING SUPPLY’s stock is overvalued by 18.4%. This means that investors are currently paying more for the stock than its actual worth. While this may be good news for current shareholders, it is important to note that overvalued stocks can be risky investments as they may not provide good returns in the long run. Our analysis shows that BEACON ROOFING SUPPLY has a strong financial standing, with steady revenue growth and profitability. However, the current market price of the stock does not accurately reflect this strength, leading to an overvalued stock. In conclusion, our analysis suggests that BEACON ROOFING SUPPLY’s stock is currently overvalued and may not provide good returns in the long term. As always, it is important for investors to do their own research and carefully consider all factors before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BECN. More…
| Total Revenues | Net Income | Net Margin |
| 9.12k | -27.6 | 4.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BECN. More…
| Operations | Investing | Financing |
| 787.8 | -225.6 | -546.4 |
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 |
| 6.21k | 4.38k | 28.78 |
Key Ratios Snapshot
Some of the financial key ratios for BECN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.5% | 172.8% | 7.8% |
| FCF Margin | ROE | ROA |
| 7.3% | 24.9% | 7.2% |
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
This move could signal a lack of confidence in the company’s future prospects or a shift in investment strategy. Investors should take this into consideration when analyzing and making decisions about Beacon Roofing Supply, as it may indicate potential risks or underperformance. It is important to continue monitoring the company’s financial performance and market trends to make informed decisions about investing in Beacon Roofing Supply.
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