Builders FirstSource manufactures and supplies structural and related building products for residential new construction primarily in the southern and eastern United States. The company was founded in 1998 and is based in Dallas, Texas.
BLDR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Builders FirstSource Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Builders FirstSource Inc ranked in the 88th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1380.67%. As for the metrics that stood out in our discounted cash flow analysis of Builders FirstSource Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.49 years, is 0.67% -- higher than 86.2% of stocks in our DCF forecasting set.
Relative to other stocks in its sector (Basic Materials), Builders FirstSource Inc has a reliance on debt greater than 64.48% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VALE, HDSN, CF, FRD, and BMCH can be thought of as valuation peers to BLDR, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Focused execution and strong housing fundamentals drive record profitabilityDALLAS, July 30, 2020 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq: BLDR) today reported its results for the second quarter ending June 30, 2020.Second Quarter 2020 Highlights: * Net sales for the quarter increased by 2.2% compared to the prior year period \- Core organic sales declined 2.1%, excluding acquisitions and commodity impacts \- Acquisitions contributed net sales growth of 2.5% \- Estimated sales volume, which includes core organic and acquisitions, grew by 0.4% \- Commodity inflation increased sales by 1.8% * Adjusted EBITDA increased 11.2% to a record $162 million, or 8.3% of net sales driven by disciplined cost management * Net income of $78.9 million, or $0.67 per...
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]