Foundation Building Materials, Inc. (FBM) Company Bio
Foundation Building Materials is the second largest distributor of wallboard, ceiling systems and mechanical insulation. The company was founded in 2011 and is based in Tustin, California.
FBM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Foundation Building Materials Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Foundation Building Materials Inc ranked in the 100th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for FBM, they are:
The company's compound free cash flow growth rate over the past 3.36 years comes in at 2.29%; that's greater than 96.45% of US stocks we're applying DCF forecasting to.
Foundation Building Materials Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 23.19% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Foundation Building Materials Inc has a reliance on debt greater than 73.04% of them.
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 Foundation Building Materials Inc? See EAF, VRRM, SMHI, FLY, and YRCW.
Foundation Building Materials, Inc. (FBM or the "Company") (NYSE: FBM), one of the largest specialty distributors of wallboard, suspended ceilings systems, metal framing, and complementary products in North America, announced today the Company will release its second quarter 2020 financial results after the market close on Monday, August 3, 2020, and host a conference call the following day. The conference call is scheduled for 8:30 AM Eastern Time Tuesday, August 4, 2020.
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. […]
Joining me today are Ruben Mendoza, our president and CEO; John Gorey, chief financial officer; Pete Welly, chief operating officer; and Kirby Thompson, senior vice president of sales and marketing. Forward-looking statements address matters that are subject to risks and uncertainties, which may cause actual results to differ from those discussed today.