Beacon Roofing Supply Inc. (NASDAQ:BECN) Relative Strength Index (RSI) is 48.01, with weekly volatility at 2.83% and ATR at 1.83. The BECN stock’s 52-week price range has touched low of $21.92 and a $60.93 high. Intraday shares traded counted 0.35 million, which was 14.66% higher than its 30-day average trading volume of 412.52K. Its shares traded higher over the last trading session, gaining 0.43% on 05/20/21. The shares fell to a low of $55.16 before closing at $56.18. BECN’s previous close was $55.94 while the outstanding shares total 69.60M. The firm has a beta of 1.99, a 12-month trailing P/E ratio of 49.59, and a growth ratio of 5.62.
Investors have identified the Building Products & Equipment company Beacon Roofing Supply Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.86 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Beacon Roofing Supply Inc. (BECN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BECN, the company has in raw cash 619.3 million on their books with 10.7 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.78 billion total, with 1.36 billion as their total liabilities.
BECN were able to record -155.2 million as free cash flow during the 08/12/2021 quarter of the year, this saw their quarterly net cash flow reduce by -5.3 million. In cash movements, the company had a total of -123.1 million as operating cash flow.
Potential earnings growth for Beacon Roofing Supply Inc. (BECN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/12/2021 quarter of the year, Beacon Roofing Supply Inc. recorded a total of 1.32 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.17% coming in sequential stages and their sales for the 08/12/2021 quarter reducing by -19.61%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 985.2 million trying to sell their products during the last quarter, with the result yielding a gross income of 332.8 million. This allows shareholders to hold on to 69.60M with the recently reported earning now reading -0.18 cents per share. This is a figure that compared to analyst’s prediction for their 08/12/2021 (0.23 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.93 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BECN sounds very interesting.
Is the stock of BECN attractive?
In related news, President, South Division, Best Clement Munroe III sold 4,000 shares of the company’s stock in a transaction that recorded on May 07. The sale was performed at an average price of 60.00, for a total value of 240,000. As the sale deal closes, the 10% Owner, CD&R Investment Associates IX, now bought 563,611 shares of the company’s stock, valued at 29,999,999. Also, President, South Division, Best Clement Munroe III sold 4,000 shares of the company’s stock in a deal that was recorded on Apr 16. The shares were price at an average price of 57.00 per share, with a total market value of 228,000. Following this completion of acquisition, the President, West Division, Taylor Jason L now holds 3,387 shares of the company’s stock, valued at 180,222. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
8 out of 16 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Beacon Roofing Supply Inc.. 1 analysts has assigned a Sell rating on the BECN stock. The 12-month mean consensus price target for the company’s shares has been set at $54.17.