Builders FirstSource Inc. (NASDAQ:BLDR) shares traded lower over the last trading session, losing -1.35% on 05/28/21. The shares fell to a low of $43.7399 before closing at $44.54. Intraday shares traded counted 1.85 million, which was 17.71% higher than its 30-day average trading volume of 2.25M. BLDR’s previous close was $45.15 while the outstanding shares total 206.57M. The firm has a beta of 2.42, a 12-month trailing P/E ratio of 13.08, and a growth ratio of 0.70. The stock’s Relative Strength Index (RSI) is 39.25, with weekly volatility at 2.81% and ATR at 1.71. The BLDR stock’s 52-week price range has touched low of $19.03 and a $53.99 high.
Investors have identified the Building Products & Equipment company Builders FirstSource 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 $9.35 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.
Builders FirstSource Inc. (BLDR) 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 BLDR, the company has in raw cash 19.12 million on their books with 14.13 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 3.57 billion total, with 1.86 billion as their total liabilities.
BLDR were able to record -239.77 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -404.69 million. In cash movements, the company had a total of -200.51 million as operating cash flow.
Potential earnings growth for Builders FirstSource Inc. (BLDR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Builders FirstSource Inc. recorded a total of 4.17 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 57.18% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 39.37%.
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 3.1 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.07 billion. This allows shareholders to hold on to 206.57M with the recently reported earning now reading 0.84 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (1.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.56 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 BLDR sounds very interesting.
Is the stock of BLDR attractive?
In related news, Principal Accounting Officer, Coulter Jami Lynn sold 5,000 shares of the company’s stock in a transaction that recorded on Mar 08. The sale was performed at an average price of 44.47, for a total value of 222,350. As the sale deal closes, the EVP & General Counsel, Johnson Timothy D now sold 10,000 shares of the company’s stock, valued at 443,900. Also, President – Central Division, Hiller Michael sold 8,330 shares of the company’s stock in a deal that was recorded on Mar 04. The shares were price at an average price of 41.96 per share, with a total market value of 349,527. Following this completion of acquisition, the SVP – COO – East, Rush David E now holds 9,108 shares of the company’s stock, valued at 278,523. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.
12 out of 13 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Builders FirstSource Inc.. 0 analysts has assigned a Sell rating on the BLDR stock. The 12-month mean consensus price target for the company’s shares has been set at $61.93.