Explore what analysts are saying about Builders FirstSource BLDR based on recent ratings:

Explore the 12-month price targets set by 10 analysts for Builders FirstSource in the last 3 months. The average price target is $166.2, with a high estimate of $200.00 and a low estimate of $143.00.

Discover a summary of 10 analysts' ratings for Builders FirstSource over the last 3 months. Increased bullish ratings indicate a positive sentiment, while increased bearish ratings signal a negative outlook.

Observing a downward trend, the current average is 2.24% lower than the prior average price target of $170.00.

Exploring Analyst Ratings: An In-Depth Overview

Explore the sentiments of financial experts and analysts through a comprehensive breakdown of their recent evaluations for Builders FirstSource. Our Ratings Table below offers a detailed overview of the actions taken by key analysts, their current ratings, and price targets. Understanding how these experts perceive the company can provide valuable insights into potential market trends and investor sentiment.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Builders FirstSource. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Builders FirstSource compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Builders FirstSource's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Builders FirstSource's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Builders FirstSource analyst ratings.

Discovering Builders FirstSource: A Closer Look

Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.

Understanding the Numbers: Builders FirstSource's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Builders FirstSource faced challenges, resulting in a decline of approximately -21.3% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Builders FirstSource's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 9.96%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Builders FirstSource's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 10.12%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.21%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.85, Builders FirstSource adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.