Low Price to Earnings Ratio
Attractive Price to Sales Ratio
Strong Gross Profit Margin
Healthy Operating Profit Margin
Low Debt to Equity Ratio
Strong Current and Quick Ratios
Strong Financial Performance
Investment in Value-Added Products
Successful M&A Strategy
Growth Potential in Digital Sales
Focus on Install Services
High EV/EBITDA Ratio
Low Return on Equity
Low Cash Ratio
Challenges in Multifamily Segment
Normalization of Margins
Anticipated Market Challenges
Operational Headwinds
BLDR shows strong financial health and a solid business model with a focus on innovation and strategic growth through acquisitions and digital initiatives. However, the company faces challenges in the multifamily sector and anticipated market headwinds that could impact future performance.
Analysis Date: February 20, 2025
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$361.43
Current Market Price: $122.67
IV/P Ratio: 2.95x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
66.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for BLDR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (13.20)
P/B ratio ≤ 1.5 (3.31)
Current ratio ≥ 2.0 (1.77x)
Long-term debt < Net current assets (0.39x)
Margin of safety (66.0%)
BLDR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The gross profit margin of 32.82% indicates that the company retains a good portion of revenue after covering the cost of goods sold, reflecting operational efficiency.
An operating profit margin of 9.73% shows that the company is effectively managing its operating expenses relative to its revenue.
The return on equity of 0.10% is very low, suggesting that the company is not effectively generating profit from its equity base.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
23.95%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
0.00%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
32.82%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
6.57%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The debt to equity ratio of 0.15 indicates a conservative capital structure with minimal reliance on debt, which lowers financial risk.
Current Ratio of 1.77 and Quick Ratio of 1.09 indicate good liquidity, suggesting that the company can easily meet its short-term obligations.
A cash ratio of 0.09 implies that the company has limited cash reserves compared to its current liabilities, which may pose liquidity challenges.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.15x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.77x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
BLDR demonstrated resilience with a mid-teens adjusted EBITDA margin and a nearly 33% gross margin in 2024. Despite challenges, the company maintained a fortress balance sheet and generated significant cash flow.
BLDR invested over $75 million in value-added facilities, opening new manufacturing sites and enhancing existing ones, which helps them address customer challenges effectively.
The company completed 13 acquisitions in 2024, enhancing their market position and expanding their footprint in high-growth areas.
The multifamily sector remains a headwind, contributing to a projected decline in sales and showcasing the vulnerability of this segment.
BLDR faced margin normalization due to competitive dynamics and declining average home sizes, impacting profitability.
BLDR expects to achieve $200 million in additional incremental sales from digital platforms in 2025, indicating strong adoption and future revenue potential.
The company's install services, accounting for 16-17% of sales, show significant growth potential in the market, especially in a down market.
The company anticipates a flat single-family market in 2025 and continued weakness in multifamily, indicating a challenging operating environment.
BLDR faces headwinds from increased competition and pricing pressures, which may impact their ability to protect margins and share.