Builders Firstsource (BLDR) AI Stock Analysis

• Market Cap: $11.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.28
• Revenue Growth: -5.49%
• EPS Growth: -33.51%
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 81
• Industry: Construction
• EPS (TTM): 1.51
• Shares Outstanding: 110,514,820
• 10 Day Avg. Volume: 1,548,269
• 30 Day Avg. Volume: 1,665,993
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $150.25
• Price Target Upside: 40.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

Builders FirstSource's overall score of 67 reflects a balance of strengths in financial performance and strategic initiatives, countered by technical challenges and cautious earnings sentiment. The company's solid cash flow and low leverage are positive, but recent declines in revenue and net income, along with bearish technical indicators, present risks.

Positive Factors

Cost Savings

The company achieved ~$17M in productivity savings during the quarter through supply chain, fleet, and truss manufacturing initiatives with a full year target of $70-90M.

Growth Potential

BLDR is well positioned to profitably capitalize on residential construction primed to realize outsized benefits from the undersupply of new homes while strengthening its leading position.

Market Position

Builders FirstSource is much more than just a building products distributor, with higher, stickier margins and reduced sensitivity to commodity prices than the Company had ~6+ years ago.

Negative Factors

Guidance Reduction

BLDR is reducing 2025 guidance for net sales and adjusted EBITDA, indicating a challenging housing market.

Housing Demand

Weaker-than-expected new single-family housing demand is leading to more price competition and margin pressure.

Macroeconomic Challenges

Macro uncertainty takes its toll, as what was previously shaping up to be a flattish year for new construction appears to be deteriorating.

Builders Firstsource Business Overview & Revenue Model

Company Description

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior and exterior trims and custom products under the Synboard brand name. The company also offers gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes; and siding, metal, and concrete products, such as vinyl, composite, and wood siding products, as well as exterior trims, other exteriors, metal studs, and cement products. In addition, it provides other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

How the Company Makes Money

Builders FirstSource generates revenue primarily by supplying a wide array of building materials and manufactured products to the residential construction market. The company's key revenue streams include the sale of lumber and lumber sheet goods, manufactured products such as roof and floor trusses, wall panels, stairs, and engineered wood products, as well as windows, doors, and millwork. Additionally, Builders FirstSource offers value-added services like project management and installation services. The company capitalizes on strategic partnerships with suppliers and leverages economies of scale to maintain competitive pricing and secure a steady supply chain. These factors, combined with a strong distribution network, contribute significantly to its earnings.

Builders Firstsource Financial Statement Overview

Summary

Builders FirstSource shows solid profitability with a gross profit margin of 32.1% and a net profit margin of 5.7% for TTM. The balance sheet is healthy with low leverage and stable capital structure, and cash flow generation is strong. However, revenue and net income declines pose challenges.

Income Statement

The income statement shows solid profitability with a gross profit margin of 32.1% and a net profit margin of 5.7% for TTM (Trailing-Twelve-Months). However, both revenue and net income have declined compared to the previous year, indicating some challenges in maintaining top-line growth. The EBIT and EBITDA margins are strong, at 8.7% and 11.3%, respectively.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.15, which indicates low leverage. The equity ratio stands at 38.2%, demonstrating a stable capital structure. However, the return on equity is modest at 20.9%, which suggests room for improvement in generating higher returns for shareholders.

Cash Flow

The cash flow statement is robust, with a significant operating cash flow to net income ratio of 1.84, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also favorable at 1.42. Although free cash flow has decreased slightly in the TTM period, the company maintains solid cash flow metrics overall.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.40B	17.10B	22.73B	19.89B	8.56B
	Gross Profit
5.38B	6.01B	7.74B	5.85B	2.22B
	EBIT
1.60B	2.18B	3.77B	2.39B	543.85M
	EBITDA
1.60B	2.73B	4.27B	2.93B	660.42M
	Net Income Common Stockholders
1.08B	1.54B	2.75B	1.73B	313.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.62M	66.16M	80.44M	42.60M	423.81M
	Total Assets
10.58B	10.50B	10.60B	10.71B	4.17B
	Total Debt
4.33B	3.71B	3.49B	3.40B	1.91B
	Net Debt
4.18B	3.65B	3.41B	3.36B	1.48B
	Total Liabilities
6.29B	5.77B	5.63B	5.91B	3.02B
	Stockholders Equity
4.30B	4.73B	4.96B	4.80B	1.15B
Cash Flow		Free Cash Flow
1.49B	1.83B	3.26B	1.52B	147.99M
	Operating Cash Flow
1.87B	2.31B	3.60B	1.74B	260.07M
	Investing Cash Flow
-710.72M	-668.29M	-957.48M	-1.34B	-136.22M
	Financing Cash Flow
-1.07B	-1.65B	-2.60B	-780.11M	285.87M

Builders Firstsource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLDR, the sentiment is Negative. The current price of 107.15 is below the 20-day moving average (MA) of 116.77, below the 50-day MA of 124.18, and below the 200-day MA of 158.50, indicating a bearish trend. The MACD of -4.27 indicates Positive momentum. The RSI at 33.22 is Neutral, neither overbought nor oversold. The STOCH value of 5.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLDR.

Builders Firstsource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OC	77 Outperform	$12.20B	19.60	12.63%	1.78%	13.41%	-44.36%
AZEK	76 Outperform	$7.19B	49.97	10.73%	―	6.59%	30.00%
LPX	73 Outperform	$6.30B	15.38	24.41%	1.21%	8.09%	55.08%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
WMS	70 Outperform	$8.75B	19.25	34.07%	0.57%	3.67%	-5.03%
BLDR	67 Neutral	$11.84B	13.76	19.62%	―	-5.49%	-33.51%
Sector *	64 Neutral	$4.25B	11.72	5.24%	249.79%	4.07%	-9.45%

Builders Firstsource Corporate Events

Builders FirstSource Announces $500M Senior Notes Offering

On May 5, 2025, Builders FirstSource announced its intention to offer $500 million in senior unsecured notes due 2035, subject to market conditions. The proceeds from this offering are intended to repay outstanding indebtedness under the company’s ABL Facility. Additionally, Builders FirstSource plans to amend its senior secured ABL facility to increase commitments and extend the maturity date, although these plans are not contingent on the completion of the notes offering. This strategic financial maneuver aims to strengthen the company’s financial flexibility and operational capacity.

Spark’s Take on BLDR Stock

According to Spark, TipRanks’ AI Analyst, BLDR is a Neutral.

Builders FirstSource’s overall score of 64 reflects a balance of strengths in financial performance and strategic initiatives, countered by technical challenges and cautious earnings sentiment. The company’s solid cash flow and low leverage are positive, but recent declines in revenue and net income, along with bearish technical indicators, present risks.

To see Spark’s full report on BLDR stock, click here.

Builders FirstSource Releases 2025 CSR Report

On April 30, 2025, Builders FirstSource released its 2025 Corporate Social Responsibility report, showcasing its commitment to sustainability and safety. The report highlights achievements such as a 10% reduction in the total recordable incident rate, significant charitable contributions, and sustainable sourcing practices. These efforts reflect the company’s dedication to a people-first culture and its ongoing transformation of the homebuilding industry to create a lasting impact.

Spark’s Take on BLDR Stock

According to Spark, TipRanks’ AI Analyst, BLDR is a Neutral.

Builders Firstsource scores a 66, reflecting a balance of strengths and challenges. The company’s solid financial performance, strong EBITDA, and strategic investments are key strengths. However, the technical indicators suggest bearish momentum, and external challenges such as market conditions and severe weather impact sales. The reasonable P/E ratio supports a fair valuation.

To see Spark’s full report on BLDR stock, click here.

Builders FirstSource Strengthens Board with New Appointments

In a recent development, Builders FirstSource announced the addition of Cheryl Ainoa and Maria Renz to its Board of Directors, effective March 1, 2025. Both bring substantial expertise in digital transformation and innovation from leading tech companies, which is expected to enhance the company’s strategic direction. Furthermore, the company reported its financial results for the fourth quarter and full year 2024, highlighting a decline in net sales, gross margin, and net income due to lower core organic sales and commodity deflation. Despite these challenges, Builders FirstSource remains committed to investing in value-added solutions and technology, positioning itself for resilience and future growth.