Builders FirstSource, Inc. (BLDR) AI Stock Analysis

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services for professional homebuilders, sub-contractors, remodelers, and consumers in the United States. Its offerings include lumber and lumber sheet goods such as dimensional lumber, plywood, and oriented strand board used in house framing. The company also supplies manufactured products like wood and steel trusses, wall panels, stairs, windows, doors, and custom products under the Synboard brand. Additionally, it offers gypsum, roofing, insulation, siding, metal studs, cement products, turn-key framing, shell construction, and installation services.

Revenue grew at a 5-year CAGR of 12.2% from FY2020 to FY2025, reaching a peak of $22.73B in FY2022 before retreating. Annual revenue fell 24.8% in FY2023 to $17.10B, 4.1% in FY2024 to $16.40B, and 7.4% in FY2025 to $15.19B. Net margin contracted from 12.1% in FY2022 to 2.9% in FY2025, with net income declining from $2.75B to $435.2M. For the latest quarter ending June 30, 2026, quarterly revenue fell 8.8% year-over-year, while quarterly earnings dropped 82.9%. Trailing twelve-month revenue stood at $14.45B with an operating margin of 3.3% and EPS of $0.92.

As of June 30, 2026, Builders FirstSource held $65.7M in cash and short-term investments against total debt of $5.24B, resulting in net debt of $5.17B. The company reported total assets of $11.32B, shareholders' equity of $4.01B, a debt-to-equity ratio of 1.31, and a current ratio of 1.79. In FY2025, operating cash flow was $1.22B and free cash flow was $853.3M. The company spent $362.6M on capital expenditures and $414.0M on share buybacks in FY2025, reducing its share count by 43.2% over 5 years.

Builders FirstSource has a market capitalization of $5.88B and an enterprise value of $11.54B. The stock trades at a trailing price-to-earnings ratio of 59.4x, which is above the 24.8x median of its US-listed Industrials peers. Its forward price-to-earnings ratio of 13.9x and EV to EBITDA ratio of 11.2x compare to peer medians of 17.2x and 13.9x, respectively. The company trades at a price-to-sales ratio of 0.4x. Over the past year, the stock fell 55.6%, trailing the S&P 500 return of 16.8%.

Analyst ratings comprise 8 Strong Buy, 2 Buy, 12 Hold, 0 Sell, and 2 Strong Sell recommendations. The mean price target is $71.36, representing a 30.6% premium over the last close of $54.65 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate revenue of $14.29B and EPS of $3.03, reflecting a 56.1% drop in earnings. Next fiscal year estimates project revenue of $14.60B and EPS of $3.81. Builders FirstSource beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of Builders FirstSource, Inc. (BLDR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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