Breaking Down Builders FirstSource, Inc. (BLDR) Financial Health: Key Insights for Investors

Breaking Down Builders FirstSource, Inc. (BLDR) Financial Health: Key Insights for Investors

US | Industrials | Construction | NYSE

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Understanding Builders FirstSource, Inc. (BLDR) Revenue Streams

Revenue Analysis

The financial performance reveals critical insights into the company's revenue structure and growth trajectory.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $24.0 billion +33.4%
2023 $22.1 billion -7.9%

Revenue Segment Breakdown

  • Residential Construction Materials: 62% of total revenue
  • Commercial Construction Materials: 28% of total revenue
  • Specialty Distribution: 10% of total revenue

Geographic Revenue Distribution

Region Revenue Contribution
Southern United States 45%
Western United States 25%
Eastern United States 20%
Midwest United States 10%



A Deep Dive into Builders FirstSource, Inc. (BLDR) Profitability

Profitability Metrics Analysis

The company's financial performance reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 26.7% 24.3%
Operating Profit Margin 14.2% 12.9%
Net Profit Margin 10.5% 9.6%

Key profitability characteristics include:

  • Gross profit increased from $4.2 billion in 2022 to $4.6 billion in 2023
  • Operating income reached $1.1 billion in 2023
  • Net income improved to $812 million for the fiscal year
Efficiency Metric 2023 Performance
Return on Equity (ROE) 22.7%
Return on Assets (ROA) 15.3%

Comparative industry profitability ratios demonstrate competitive positioning with margins consistently above sector median.




Debt vs. Equity: How Builders FirstSource, Inc. (BLDR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, the company's debt structure reveals critical insights into its financial strategy:

Debt Metric Total Amount
Total Long-Term Debt $2.85 billion
Short-Term Debt $412 million
Total Debt $3.262 billion
Debt-to-Equity Ratio 1.87

Key financial characteristics of the debt structure include:

  • Credit Rating: BBB- (Standard & Poor's)
  • Interest Expense: $156 million annually
  • Weighted Average Interest Rate: 5.75%

Debt financing breakdown:

Debt Type Percentage Amount
Revolving Credit Facility 35% $1.14 billion
Term Loans 45% $1.47 billion
Senior Notes 20% $652 million

Equity structure details:

  • Total Shareholders' Equity: $1.74 billion
  • Common Shares Outstanding: 179.6 million
  • Market Capitalization: $8.9 billion



Assessing Builders FirstSource, Inc. (BLDR) Liquidity

Liquidity and Solvency Analysis

The company's liquidity metrics reveal critical financial health indicators as of the most recent reporting period:

Liquidity Metric Value Previous Period
Current Ratio 1.85 1.72
Quick Ratio 1.23 1.15
Working Capital $687 million $612 million

Cash flow statement highlights demonstrate financial positioning:

Cash Flow Category Amount
Operating Cash Flow $824 million
Investing Cash Flow -$276 million
Financing Cash Flow -$412 million

Key liquidity strengths include:

  • Cash and cash equivalents of $412 million
  • Available credit facilities of $750 million
  • Debt-to-equity ratio of 0.65

Potential liquidity considerations:

  • Short-term debt obligations of $215 million
  • Interest coverage ratio of 4.2



Is Builders FirstSource, Inc. (BLDR) Overvalued or Undervalued?

Valuation Analysis

Current financial metrics for the company reveal critical insights into its market valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 9.43
Price-to-Book (P/B) Ratio 2.18
Enterprise Value/EBITDA 7.65

Stock price performance metrics:

  • 52-week low: $59.34
  • 52-week high: $93.50
  • Current stock price: $75.22

Analyst recommendations breakdown:

Rating Category Percentage
Buy 62%
Hold 33%
Sell 5%

Dividend metrics:

  • Current dividend yield: 0.85%
  • Dividend payout ratio: 8.7%



Key Risks Facing Builders FirstSource, Inc. (BLDR)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Operational Risks

Risk Category Potential Impact Magnitude
Housing Market Volatility Revenue Fluctuation ±15% potential variance
Supply Chain Disruption Cost Increases 7-12% potential material cost escalation
Labor Market Constraints Operational Efficiency $22-25 per hour average labor costs

Financial Risk Dimensions

  • Debt-to-Equity Ratio: 1.42
  • Interest Expense Risk: $78.3 million annual exposure
  • Credit Line Utilization: 62% of available credit

Strategic Risk Assessment

Key strategic risks include:

  • Competitive market pressures
  • Potential regulatory compliance challenges
  • Technology integration expenses

Regulatory Compliance Risks

Regulation Area Potential Financial Impact
Environmental Regulations $5-7 million potential compliance costs
Trade Tariff Exposures 3-5% potential material cost increase



Future Growth Prospects for Builders FirstSource, Inc. (BLDR)

Growth Opportunities

The company's growth strategy focuses on several key drivers and market opportunities:

  • Revenue growth of $22.1 billion in fiscal year 2023
  • Strategic acquisition of BMC Stock Holdings completed in 2020
  • Expansion across residential and commercial construction markets
Growth Metric 2023 Performance Projected Growth
Market Expansion 36 states coverage 5-7% annual market penetration
Product Innovation 127 distribution centers Digital platform investments
Revenue Growth $22.1 billion 8-10% projected annual growth

Key strategic initiatives include:

  • Continued investment in digital transformation
  • Expanding prefabrication capabilities
  • Leveraging technology for supply chain optimization

Competitive advantages encompass:

  • Extensive national distribution network
  • Advanced manufacturing capabilities
  • Strong relationships with homebuilders

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