BECN Stock Fair Value Calculation – Bank of Montreal Can Invests in Beacon Roofing Supply,
November 21, 2023
🌥️Trending News
The Bank of Montreal has recently made an investment in Beacon Roofing Supply ($NASDAQ:BECN), Inc., a leading provider of roofing materials and related building products in North America. From residential to commercial roofing supplies, they offer a complete selection of roofing products and services. Their commitment to providing quality products, excellent customer service, and competitive pricing has earned them a trusted name in the industry. Their portfolio of products includes asphalt shingles and membranes, metal roofing, slate and tile, waterproofing, cements and coatings, insulation, ventilation, skylights, and more. They also offer installation services, such as roof repairs, replacement roofing, and renovation projects.
Beacon Roofing Supply has continued to expand its footprint and increase its offerings to include services such as construction management, general contracting, and consulting. The company is well-positioned for growth as the demand for roofing products increases due to the aging housing stock and the shift towards green energy solutions. With the Bank of Montreal’s investment in Beacon Roofing Supply, the company is now set up for long-term success. The strategic partnership between the two companies will help to create mutually beneficial opportunities that will continue to drive their success in the future.
Share Price
On Friday, Bank of Montreal Can announced that they have invested in Beacon Roofing Supply, Inc., a leading distributor of residential and non-residential roofing materials and complimentary building products in North America. Following the news, Beacon Roofing Supply’s stock opened at $79.4 and closed at $80.5, up by 1.8% from its prior closing price of 79.1. This marks the third consecutive day of gains as investors bet on the company’s future growth prospects. With the new investment, the company is well-positioned to continue its expansion in North America and strengthen its competitive edge in the industry. 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 |
| 8.79k | -64.4 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BECN. More…
| Operations | Investing | Financing |
| 845.6 | -474 | -386.1 |
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 |
| 6.55k | 4.8k | 27.7 |
Key Ratios Snapshot
Some of the financial key ratios for BECN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | 465.3% | 7.7% |
| FCF Margin | ROE | ROA |
| 8.2% | 20.2% | 6.4% |
Analysis – BECN Stock Fair Value Calculation
At GoodWhale, we analyzed BEACON ROOFING SUPPLY’s financials and found that its intrinsic value is around $67.1, which we calculated using our proprietary Valuation Line. Currently, BEACON ROOFING SUPPLY stock is trading at $80.5, which means it is overvalued by 20.0%. This means that investors should be wary of buying the stock as the current price does not seem to be justified by the company’s financials. More…
Peers
Beacon Roofing Supply Inc is one of the largest roofing distributors in North America. The company has more than 500 locations across the United States and Canada. The company was founded in 1928 and is headquartered in Herndon, Virginia. Beacon Roofing Supply Inc’s main competitors are BlueLinx Holdings Inc, Jiangsu Canlon Building Materials Co Ltd, and Armstrong Flooring Inc.
– BlueLinx Holdings Inc ($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
Bank of Montreal Can has recently taken a position in Beacon Roofing Supply, Inc., a leading distributor of residential and commercial roofing and complementary building products in North America. Analysts predict that the company has strong fundamentals and is well positioned to benefit from a recovery in the housing market. Its recent earnings report showed continued strong year-over-year growth in sales and net income. Management has been focused on reducing debt levels and increasing free cash flow, providing a solid foundation for future growth.
The stock is trading at a lower valuation compared to its historical averages, making it an attractive investment option for investors seeking long-term growth opportunities. With its promising fundamentals and attractive valuation, Beacon Roofing Supply, Inc. appears to be an attractive investment for those looking for exposure to the construction industry.
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