(BLDR) Builders FirstSource - Ratings and Ratios

Builders FirstSource, Inc. is a leading manufacturer and supplier of building materials and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States, leveraging its extensive product portfolio and software solutions to drive growth and efficiency.

The companys product offerings include a wide range of manufactured products, such as wood floor and roof trusses, wall panels, and engineered wood products, as well as windows, doors, millwork, and specialty building products, including siding, exterior trims, and roofing materials. Additionally, it provides turn-key framing, shell construction, design assistance, and professional installation services, catering to the diverse needs of its customers.

Builders FirstSource serves a broad customer base, including production builders, small custom homebuilders, multi-family builders, repair and remodeling contractors, and light commercial contractors, providing them with software products, such as drafting, estimating, quoting, and virtual home design services, to enhance their operations.

From a technical analysis perspective, the stock has shown a relatively stable trend, with its 20-day SMA at $112.90 and 50-day SMA at $116.66. However, the 200-day SMA at $153.86 indicates a longer-term downtrend. The ATR of 4.24 suggests a moderate level of volatility. Given the current price of $113.36, we can expect a potential breakout or reversal if the stock price surpasses the 50-day SMA or falls below the 20-day SMA.

Fundamentally, the company has a market capitalization of $11.9 billion and a P/E ratio of 13.81, indicating a relatively undervalued stock compared to its peers. The forward P/E ratio of 12.45 suggests a stable outlook for future earnings. With a RoE of 21.02, the company demonstrates a strong ability to generate profits from shareholder equity.

Based on the technical and fundamental data, our forecast suggests that Builders FirstSource may experience a short-term correction, potentially testing the 52-week low of $105.63, before rebounding to the 50-day SMA at $116.66. If the company can maintain its current earnings momentum and improve its operational efficiency, we may see a longer-term recovery, potentially targeting the 200-day SMA at $153.86.