Investment Community Gives Mixed Response to Beacon Roofing Supply, with “Hold” Rating
July 7, 2023
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Investment analysts have responded to Beacon Roofing Supply ($NASDAQ:BECN), Inc. with a mixed reaction, with an average rating of “Hold”. This comes as no surprise, as the company is currently struggling with lackluster growth and declining market share. BEACON ROOFING SUPPLY is a leading distributor of residential and commercial roofing materials in North America. It is the largest publicly traded distributor of residential and non-residential roofing materials in the United States, Canada, and the United Kingdom. Analysts are cautious on the stock due to its unimpressive growth prospects. It has also been struggling to gain market share due to increased competition from other companies in the industry.
Additionally, the company’s balance sheet has been deteriorating, and its debt levels are increasing. This has caused investors to be wary of the stock. Overall, despite the mixed response from analysts, BEACON ROOFING SUPPLY is still a solid company with a strong brand presence in the roofing materials industry. With the right strategies in place, the company could turn things around and potentially see improved performance in the future.
Price History
The stock opened at $82.9 and closed at $83.4, up by 0.5% from its closing price of $83.0 the previous day. It remains to be seen how the company will fare in the coming months. 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 |
| 8.48k | 352.2 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BECN. More…
| Operations | Investing | Financing |
| 664.3 | -418.1 | -223.7 |
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 |
| 5.9k | 3.6k | 35.84 |
Key Ratios Snapshot
Some of the financial key ratios for BECN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.3% | 73.2% | 7.9% |
| FCF Margin | ROE | ROA |
| 6.8% | 18.2% | 7.1% |
Analysis
GoodWhale has conducted an analysis of BEACON ROOFING SUPPLY, and the results are impressive. Our Star Chart assessment reveals that BEACON ROOFING SUPPLY has an overall health score of 8/10, indicating that they are in good cashflow and debt positions, meaning they are capable of paying off their debts and funding future operations. We have classified BEACON ROOFING SUPPLY as an ‘elephant’, a type of company that is strong in assets after deducting liabilities. This is a great sign for investors as the company has a solid foundation of assets to back up its operations. Another positive aspect of BEACON ROOFING SUPPLY is its growth potential, which is rated as strong. Their asset, profitability, and dividend ratings are all on the medium side, but they are still decent for an elephant. These features make BEACON ROOFING SUPPLY an attractive investment opportunity for investors who are looking for a solid long-term investment in a company with strong potential growth. 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, Inc. (BEACON) has been met with a lukewarm response from the investing community. The average analyst rating for the company stands at “Hold”. Despite the modest ratings, some analysts have praised BEACON’s broad product portfolio, consistent revenue growth, and experienced management team.
However, potential investors should be aware that BEACON’s stock is trading at higher valuations than its peers and that it is exposed to volatile macroeconomic conditions. As such, investors should take a long-term view when considering the stock and assess risks versus rewards before making any decisions.
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