Demystifying Beacon Roofing Supply: Insights From 7 Analyst Reviews

In the latest quarter, 7 analysts provided ratings for Beacon Roofing Supply BECN, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 $128.36, a high estimate of $140.00, and a low estimate of $115.00. This current average reflects an increase of 0.41% from the previous average price target of $127.83.

Investigating Analyst Ratings: An Elaborate Study

The perception of Beacon Roofing Supply by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Beacon Roofing Supply. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Beacon Roofing Supply compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Beacon Roofing Supply's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Beacon Roofing Supply's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Beacon Roofing Supply analyst ratings.

All You Need to Know About Beacon Roofing Supply

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

Key Indicators: Beacon Roofing Supply's Financial Health

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.

Revenue Growth: Beacon Roofing Supply displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 4.53%. This indicates a notable increase 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: Beacon Roofing Supply's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 3.48%, 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 4.3%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Beacon Roofing Supply's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.16%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.74.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

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.

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