Where Builders FirstSource Stands With Analysts

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Builders FirstSource BLDR in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Builders FirstSource and provided 12-month price targets. The average target is $181.88, accompanied by a high estimate of $230.00 and a low estimate of $162.00. This current average has decreased by 9.58% from the previous average price target of $201.14.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Builders FirstSource by financial experts. The following summary presents 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: Analysts explore the dynamics of price targets, providing estimates for the future value of Builders FirstSource's stock. This examination 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.

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.

Builders FirstSource: A Financial Overview

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Challenges: Builders FirstSource's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -6.66%. This indicates 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 6.73%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 6.51%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Builders FirstSource's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 2.63%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Builders FirstSource's debt-to-equity ratio stands notably higher than the industry average, reaching 0.98. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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