BMC Stock Holdings Inc. operates as lumber and building materials distributor and solutions provider in the United States. The company was founded in 1922 and is based in Raleigh, North Carolina.
BMCH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for BMCH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Bmc Stock Holdings Inc ranked in the 87th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1222.5%. In terms of the factors that were most noteworthy in this DCF analysis for BMCH, they are:
Interest coverage, a measure of earnings relative to interest payments, is 7.49 -- which is good for besting 72.16% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 4.75 years, is 0.92% -- higher than 90.3% of stocks in our DCF forecasting set.
Bmc Stock Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 17.01% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Bmc Stock Holdings Inc? See HDSN, NTIC, NX, FRD, and VALE.
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“We now believe our 2020 second quarter net sales outlook is estimated to be flat to down 5% compared to the second quarter of 2019 and versus our previously announced outlook of down 7% to 15%,” said Dave Flitman, President and CEO of BMC. With $3.6 billion in 2019 net sales, BMC is one of the nation’s leading providers of diversified building materials and solutions to new construction builders and professional remodelers in the U.S. Headquartered in Raleigh, North Carolina, the Company's comprehensive portfolio of products and services spans building materials, including millwork and structural component manufacturing capabilities, consultative showrooms and design centers, value-added installation management and an innovative eBusiness platform.