The Analyst Verdict: Builders FirstSource In The Eyes Of 10 Experts

In the last three months, 10 analysts have published ratings on Builders FirstSource BLDR, offering a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Builders FirstSource, presenting an average target of $170.7, a high estimate of $220.00, and a low estimate of $143.00. This current average has increased by 3.01% from the previous average price target of $165.71.

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils 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: 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Builders FirstSource compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Builders FirstSource's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Builders FirstSource's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Builders FirstSource analyst ratings.

All You Need to Know About Builders FirstSource

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.

Breaking Down Builders FirstSource's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Negative Revenue Trend: Examining Builders FirstSource's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -21.3% in revenue growth, reflecting a decrease in 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 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): Builders FirstSource's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.21% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Builders FirstSource's debt-to-equity ratio is below the industry average. With a ratio of 0.85, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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