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BLDR Stock Analysis - Builders FirstSource, Inc. AI Rating

BLDR NYSE Retail-Lumber & Other Building Materials Dealers DE CIK: 0001316835
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 BLDR Key Takeaways

Revenue: $15.2B
Net Margin: 2.9%
Free Cash Flow: $853.3M
Current Ratio: 1.86x
Debt/Equity: 1.02x
EPS: $3.89
AI Rating: HOLD with 62% confidence

Investment Thesis

Builders FirstSource demonstrates solid operational efficiency with strong free cash flow generation ($853.3M) and healthy interest coverage (14.1x), but faces significant headwinds from declining revenue (-7.4% YoY) and sharply falling profitability (-59.6% YoY net income decline). The company maintains adequate liquidity and leverage metrics, but deteriorating earnings quality and market conditions warrant a cautious stance pending evidence of stabilization.

BLDR Strengths

  • + Strong free cash flow conversion at $853.3M with 5.6% FCF margin, providing substantial capital flexibility
  • + Healthy liquidity position with 1.86x current ratio and solid interest coverage at 14.1x, indicating low near-term financial stress
  • + Solid gross margin of 30.4% demonstrates pricing power and operational efficiency despite top-line pressures
  • + Moderate leverage with 1.02x debt-to-equity ratio and reasonable debt levels relative to asset base

BLDR Risks

  • ! Severe revenue contraction (-7.4% YoY) combined with net income collapse (-59.6% YoY) indicates structural demand weakness or margin compression in core business
  • ! Low net margin of 2.9% with declining operating leverage suggests limited ability to absorb further revenue pressure
  • ! Long-term debt of $4.4B equals total stockholders equity, creating vulnerability if cash flows deteriorate further or refinancing costs rise
  • ! High insider activity (21 Form 4 filings in 90 days) warrants monitoring for potential signaling of management concerns

Key Metrics to Watch

BLDR Financial Metrics

Revenue
$15.2B
Net Income
$435.2M
EPS (Diluted)
$3.89
Free Cash Flow
$853.3M
Total Assets
$11.2B
Cash Position
$181.8M

💡 AI Analyst Insight

Builders FirstSource, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BLDR Profitability Ratios

Gross Margin 30.4%
Operating Margin 5.2%
Net Margin 2.9%
ROE 10.0%
ROA 3.9%
FCF Margin 5.6%

BLDR vs Consumer Sector

How Builders FirstSource, Inc. compares to Consumer sector averages

Net Margin
BLDR 2.9%
vs
Sector Avg 8.0%
BLDR Sector
ROE
BLDR 10.0%
vs
Sector Avg 18.0%
BLDR Sector
Current Ratio
BLDR 1.9x
vs
Sector Avg 1.5x
BLDR Sector
Debt/Equity
BLDR 1.0x
vs
Sector Avg 0.8x
BLDR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BLDR Balance Sheet & Liquidity

Current Ratio
1.86x
Quick Ratio
1.16x
Debt/Equity
1.02x
Debt/Assets
61.3%
Interest Coverage
14.12x
Long-term Debt
$4.4B

BLDR 5-Year Financial Trend

BLDR 5-year financial data: Year 2021: Revenue $19.9B, Net Income $221.8M, EPS $1.90. Year 2022: Revenue $22.7B, Net Income $313.5M, EPS $2.66. Year 2023: Revenue $22.7B, Net Income $1.7B, EPS $8.48. Year 2024: Revenue $22.7B, Net Income $2.7B, EPS $16.82. Year 2025: Revenue $17.1B, Net Income $1.5B, EPS $11.94.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Builders FirstSource, Inc.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $11.94 reflects profitable operations.

BLDR Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.6%
Free cash flow / Revenue

BLDR Quarterly Performance

Quarterly financial performance data for Builders FirstSource, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $3.9B $96.3M $1.10
Q2 2025 $4.2B $96.3M $1.66
Q1 2025 $3.7B $96.3M $0.84
Q3 2024 $4.2B $258.8M $2.44
Q2 2024 $4.5B $258.8M $2.87
Q1 2024 $3.9B $258.8M $2.10
Q3 2023 $4.5B $333.8M $3.59
Q2 2023 $4.5B $333.8M $3.16

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BLDR Capital Allocation

Operating Cash Flow
$1.2B
Cash generated from operations
Stock Buybacks
$414.0M
Shares repurchased (TTM)
Capital Expenditures
$362.6M
Investment in assets
Dividends
None
No dividend program

BLDR SEC Filings

Access official SEC EDGAR filings for Builders FirstSource, Inc. (CIK: 0001316835)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 4 xslF345X05/ownership.xml View →
Mar 17, 2026 4 xslF345X05/ownership.xml View →
Mar 17, 2026 4 xslF345X05/ownership.xml View →
Mar 17, 2026 4 xslF345X05/ownership.xml View →
Mar 17, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about BLDR

What is the AI rating for BLDR?

Builders FirstSource, Inc. (BLDR) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BLDR's key strengths?

Strong free cash flow conversion at $853.3M with 5.6% FCF margin, providing substantial capital flexibility. Healthy liquidity position with 1.86x current ratio and solid interest coverage at 14.1x, indicating low near-term financial stress.

What are the risks of investing in BLDR?

Severe revenue contraction (-7.4% YoY) combined with net income collapse (-59.6% YoY) indicates structural demand weakness or margin compression in core business. Low net margin of 2.9% with declining operating leverage suggests limited ability to absorb further revenue pressure.

What is BLDR's revenue and growth?

Builders FirstSource, Inc. reported revenue of $15.2B.

Does BLDR pay dividends?

Builders FirstSource, Inc. does not currently pay dividends.

Where can I find BLDR SEC filings?

Official SEC filings for Builders FirstSource, Inc. (CIK: 0001316835) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BLDR's EPS?

Builders FirstSource, Inc. has a diluted EPS of $3.89.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI