Unveiling 14 Analyst Insights On Builders FirstSource

Throughout the last three months, 14 analysts have evaluated Builders FirstSource BLDR, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $190.57, a high estimate of $230.00, and a low estimate of $175.00. Highlighting a 6.72% decrease, the current average has fallen from the previous average price target of $204.29.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Builders FirstSource. The following summary outlines 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 Builders FirstSource. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Builders FirstSource compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Builders FirstSource's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

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

Stay up to date on Builders FirstSource analyst ratings.

Delving into Builders FirstSource's Background

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.

Financial Milestones: Builders FirstSource's Journey

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Builders FirstSource's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -1.6%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Builders FirstSource's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.72%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Builders FirstSource's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 7.43%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Builders FirstSource's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 3.14%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.01, caution is advised due to increased financial risk.

Understanding the Relevance of 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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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