Last Updated: 10 Nov 2024
Executive Summary
Builders FirstSource Inc. (BLDR) is a leading supplier of building materials and construction services in the United States. The company has a strong market capitalization of $20.53 billion and has been consistently profitable in recent years. BLDR's stock price is currently trading at $178.35, which is below its 52-week high of $214.7. However, the stock is still significantly above its 52-week low of $121.43.
Company Overview
Builders FirstSource was founded in 1998 and is headquartered in Dallas, Texas. The company operates a network of over 600 locations in 40 states. BLDR's products and services include lumber, siding, roofing, windows, doors, and hardware. The company also offers a range of construction services, such as framing, insulation, and drywall installation.
Fundamental Analysis
BLDR's financial performance has been strong in recent years. The company's revenue has grown from $11.6 billion in 2018 to $16.7 billion in 2023. Net income has also increased significantly, from $592 million in 2018 to $1.1 billion in 2023. BLDR's profit margins are also healthy, with a gross profit margin of 46.3% and an operating margin of 10.1%.
The company's balance sheet is also strong. BLDR has a low level of debt and a strong cash position. The company's return on equity is also impressive, at 27.4%.
Technical Analysis
BLDR's stock price has been trending higher in recent months. The stock broke out of a downtrend in October 2023 and has since made a series of higher highs and higher lows. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign.
Short Term Outlook
The short-term outlook for BLDR is positive. The stock is trading above its key moving averages and has a strong relative strength index (RSI). The RSI is a momentum indicator that measures the speed and change of price movements. A reading above 50 indicates that the stock is in a bullish trend.
Long Term Outlook
The long-term outlook for BLDR is also positive. The company is a leader in its industry and has a strong financial position. The company is also benefiting from the strong demand for housing in the United States.
Analyst Recommendations
The majority of analysts have a buy rating on BLDR. The average price target for the stock is $211.59, which represents a potential upside of 18.6% from the current price.
