Beacon Roofing Supply distributes residential and non-residential roofing materials to contractors, home builders, building owners, and other resellers through a network of branches across the U.S. and Canada. The company was founded in 1928 and is based in Herndon, Virginia.
BECN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Beacon Roofing Supply Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Beacon Roofing Supply Inc ranked in the 90th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2450.83%. In terms of the factors that were most noteworthy in this DCF analysis for BECN, they are:
25% of the company's capital comes from equity, which is greater than just 14.5% of stocks in our cash flow based forecasting set.
Beacon Roofing Supply Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.72. This coverage rate is greater than that of just 22.87% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Beacon Roofing Supply Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BECN, try NUE, FMC, FRTA, GMS, and VALE.