Where Beacon Roofing Supply Stands With Analysts

In the last three months, 4 analysts have published ratings on Beacon Roofing Supply BECN, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Beacon Roofing Supply, revealing an average target of $121.25, a high estimate of $135.00, and a low estimate of $115.00. Marking an increase of 19.66%, the current average surpasses the previous average price target of $101.33.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Beacon Roofing Supply by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Beacon Roofing Supply. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Beacon Roofing Supply compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Beacon Roofing Supply's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Beacon Roofing Supply's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Beacon Roofing Supply analyst ratings.

About Beacon Roofing Supply

Beacon Roofing Supply Inc manufactures and sells roofing and building materials throughout the United States and Canada. Beacon's key customers consist of contractors, home builders, lumberyards, retailers, wholesale distributors, and building materials suppliers. The company's product portfolio includes both residential and non-residential roofing materials, siding, windows, and waterproofing systems. The majority of revenue is generated from residential and non-residential roofing products. The vast majority of Beacon's revenue comes from the United States.

A Deep Dive into Beacon Roofing Supply's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Beacon Roofing Supply's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.76% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Beacon Roofing Supply's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.14%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Beacon Roofing Supply's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 5.33%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.49%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.6, Beacon Roofing Supply adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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