Builders Firstsource Stock Return On Equity
| BLDR Stock | USD 146.47 5.56 3.66% |
Builders FirstSource fundamentals help investors to digest information that contributes to Builders FirstSource's financial success or failures. It also enables traders to predict the movement of Builders Stock. The fundamental analysis module provides a way to measure Builders FirstSource's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Builders FirstSource stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.33 | 0.34 |
Builders | Return On Equity |
Builders FirstSource Company Return On Equity Analysis
Builders FirstSource's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Builders FirstSource Return On Equity | 0.27 |
Most of Builders FirstSource's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Builders FirstSource is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Builders Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Builders FirstSource is extremely important. It helps to project a fair market value of Builders Stock properly, considering its historical fundamentals such as Return On Equity. Since Builders FirstSource's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Builders FirstSource's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Builders FirstSource's interrelated accounts and indicators.
Click cells to compare fundamentals
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Builders Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Builders FirstSource has a Return On Equity of 0.2744. This is 37.64% lower than that of the Building Products sector and significantly higher than that of the Industrials industry. The return on equity for all United States stocks is 188.52% lower than that of the firm.
Builders Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Builders FirstSource's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Builders FirstSource could also be used in its relative valuation, which is a method of valuing Builders FirstSource by comparing valuation metrics of similar companies.Builders FirstSource is currently under evaluation in return on equity category among its peers.
Builders FirstSource ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Builders FirstSource's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Builders FirstSource's managers, analysts, and investors.Environmental | Governance | Social |
Builders Fundamentals
| Return On Equity | 0.27 | ||||
| Return On Asset | 0.1 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | 0.10 % | ||||
| Current Valuation | 22.44 B | ||||
| Shares Outstanding | 115.08 M | ||||
| Shares Owned By Insiders | 1.90 % | ||||
| Shares Owned By Institutions | 98.69 % | ||||
| Number Of Shares Shorted | 14.11 M | ||||
| Price To Earning | 3.84 X | ||||
| Price To Book | 4.14 X | ||||
| Price To Sales | 1.05 X | ||||
| Revenue | 17.1 B | ||||
| Gross Profit | 7.74 B | ||||
| EBITDA | 2.73 B | ||||
| Net Income | 1.54 B | ||||
| Cash And Equivalents | 84.98 M | ||||
| Cash Per Share | 0.58 X | ||||
| Total Debt | 3.71 B | ||||
| Debt To Equity | 0.71 % | ||||
| Current Ratio | 1.93 X | ||||
| Book Value Per Share | 38.48 X | ||||
| Cash Flow From Operations | 2.31 B | ||||
| Short Ratio | 1.51 X | ||||
| Earnings Per Share | 10.23 X | ||||
| Price To Earnings To Growth | 0.81 X | ||||
| Target Price | 211.0 | ||||
| Number Of Employees | 29 K | ||||
| Beta | 2.08 | ||||
| Market Capitalization | 17.5 B | ||||
| Total Asset | 10.5 B | ||||
| Retained Earnings | 460.18 M | ||||
| Working Capital | 1.44 B | ||||
| Current Asset | 1.19 B | ||||
| Current Liabilities | 735.24 M | ||||
| Net Asset | 10.5 B |
About Builders FirstSource Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Builders FirstSource's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Builders FirstSource using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Builders FirstSource based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Builders FirstSource
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Builders FirstSource position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Builders FirstSource will appreciate offsetting losses from the drop in the long position's value.Moving together with Builders Stock
Moving against Builders Stock
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| 0.6 | TREX | Trex Company | PairCorr |
The ability to find closely correlated positions to Builders FirstSource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Builders FirstSource when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Builders FirstSource - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Builders FirstSource to buy it.
The correlation of Builders FirstSource is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Builders FirstSource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Builders FirstSource moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Builders FirstSource can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Builders Stock Analysis
When running Builders FirstSource's price analysis, check to measure Builders FirstSource's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Builders FirstSource is operating at the current time. Most of Builders FirstSource's value examination focuses on studying past and present price action to predict the probability of Builders FirstSource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Builders FirstSource's price. Additionally, you may evaluate how the addition of Builders FirstSource to your portfolios can decrease your overall portfolio volatility.