Builders FirstSource BLDR
United StatesIndustrials · Building Products & EquipmentUSD
77.45 USD (+44.6%)
22 analysts
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Builders FirstSource is the largest supplier of building products and value-added services for residential and commercial construction in the US, including lumber, prefabricated panels, and windows.
Key points
from its scores- ✕Poor share-price trend0.3
- ✕Little or no dividend1.5
- ✕Weak growth1.9
AI analysis
bottom line, main risk, context and newsAvoid or wait for signs of stabilization before considering an entry; high debt and margin deterioration make the apparent value a trap.
Builders FirstSource shows clear cyclical deterioration: revenue -8.8%, ROE of 2.51% and net debt/EBITDA of 5.06, with a forward P/E of 12.45 reflecting expected weakness. Valuation appears cheap, but the business is in decline and momentum is very negative (1st percentile of the 52-week range).
The main risk is the high net debt (5.06x EBITDA) in an environment of slowing US residential construction, which could further compress the operating margin (3.33%) and strain debt service.
Context and risks
There are no recent relevant news or material exposure to current macro factors. The US building materials distribution business is not dependent on traded commodities or conflict-affected shipping routes, and its debt, although high, is not tied to a divergent rate cycle that specifically affects it.
Is Builders FirstSource stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 51% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 58.2 | 25.4 | +129% |
| EV / EBITDA | 10.7 | 14.5 | −26% |
| Price / book | 1.4 | 4.1 | −65% |
| Price / sales | 0.4 | 2.1 | −81% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.5 out of 10 (median for Industrials: 5.0).
Average analyst target: 77.45 USD, +44.6% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.6 (sector 5.8), Growth 1.9 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 58.2
- Forward P/E
- 12.5
- EV / EBITDA
- 10.7
- Price / book
- 1.4
- Price / sales
- 0.4
- PEG
- 2.02
- Market cap
- 5.8B USD
- Enterprise value
- 10.9B USD
Profitability
- ROE
- 2.5%
- ROA
- 2.4%
- ROIC (approx.)
- 5.2%
- Gross margin
- 29.2%
- Operating margin
- 3.3%
- Net margin
- 0.7%
- Free cash flow
- 464.6M USD
- FCF yield
- 8.1%
- Cash conversion
- 45%
Solvency
- Total debt
- 5.2B USD
- Net debt
- 5.2B USD
- Cash
- 65.7M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 5.06
- Debt / equity
- 130.79
- Current ratio
- 1.79
- Quick ratio
- 1.01
Growth
- Revenue growth
- −8.8%
- EPS (TTM)
- 0.92 USD
- EPS (forward)
- 4.30 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.45
- Analyst consensus
- Buy (22)
- Target price
- 77.45 USD
- 52-week range
- 52.98 – 131.50
Recent news
All BLDR news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Builders FirstSource
Is Builders FirstSource stock cheap or expensive?
On P/E and EV / EBITDA, it trades 51% above the Industrials median on average. Valuation score: 5.5 out of 10 (median for Industrials: 5.0). Average analyst target: 77.45 USD, +44.6% versus the price. This is not investment advice.
What score does Builders FirstSource get on MeridIAn Screener?
It scores 3.5 out of 10, rank 2,028 of 2,130 (better than 4% of the companies analysed). Its strongest category is Valuation (5.5) and its weakest, Momentum (0.3). Analysis of 08/10/2026.
What is Builders FirstSource's P/E ratio?
Its P/E is 58.2: the share price equals 58.2 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 12.5.
How much is Builders FirstSource worth on the stock market?
Its market capitalisation is 5.8B USD and its enterprise value, debt included, is 10.9B USD.
How much debt does Builders FirstSource have?
Its net debt (debt minus cash) is 5.2B USD. That is 5.06 times its EBITDA; the Industrials median is 1.58.
Does Builders FirstSource pay a dividend?
It pays no dividend, or almost none.
How has Builders FirstSource stock performed over the last year?
It has fallen 56.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 52.98 and 131.50 USD. Past performance does not guarantee future results.
What do analysts think of Builders FirstSource?
22 analysts cover it; their average recommendation is “Buy” and their average target is 77.45 USD (+44.6% versus the price). It is an estimate, not market data.