Expert Outlook: Beacon Roofing Supply Through The Eyes Of 4 Analysts

In the preceding three months, 4 analysts have released ratings for Beacon Roofing Supply BECN, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $110.0, a high estimate of $117.00, and a low estimate of $95.00. Highlighting a 0.68% decrease, the current average has fallen from the previous average price target of $110.75.

Investigating Analyst Ratings: An Elaborate Study

An in-depth analysis of recent analyst actions unveils how financial experts perceive Beacon Roofing Supply. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 Beacon Roofing Supply. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Beacon Roofing Supply compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Beacon Roofing Supply's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Beacon Roofing Supply's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Beacon Roofing Supply analyst ratings.

Delving into Beacon Roofing Supply's Background

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.

Beacon Roofing Supply: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Beacon Roofing Supply's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 39.86%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out 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 4.76%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Beacon Roofing Supply's ROE stands out, surpassing industry averages. With an impressive ROE of 7.08%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Beacon Roofing Supply's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.8%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 2.11, Beacon Roofing Supply adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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