📊 BLDR Key Takeaways
Is Builders FirstSource, Inc. (BLDR) a Good Investment?
Builders FirstSource is operationally unprofitable with a net margin of -1.4% and interest coverage of 0.3x, indicating the company cannot service its 4.7B in long-term debt from operations. Revenue decline of 7.4% YoY combined with deteriorating profitability (net income down 59.6% YoY) signals structural weakness in a cyclical sector, creating meaningful restructuring and default risk.
Builders FirstSource still shows solid underlying financial quality through healthy gross margins, strong free cash flow generation, and adequate liquidity despite a weaker demand environment. However, the sharp year-over-year decline in revenue, earnings, and net margin indicates meaningful cyclical pressure and weaker growth quality. The balance sheet remains serviceable, but leverage is high enough that sustained profit compression would matter.
Why Buy Builders FirstSource, Inc. Stock? BLDR Key Strengths
- Positive operating cash flow of 87.5M and free cash flow of 40.7M provide near-term debt service capacity
- Gross margins of 28.3% demonstrate product-level profitability and pricing power in core operations
- Current ratio of 1.76x and quick ratio of 1.09x provide adequate short-term liquidity cushion
- Strong free cash flow generation of $853.28M supports financial flexibility
- Healthy liquidity with a 1.86x current ratio and 1.16x quick ratio
- Interest coverage of 14.1x suggests debt is currently manageable despite elevated borrowings
BLDR Stock Risks: Builders FirstSource, Inc. Investment Risks
- Interest coverage ratio of 0.3x is critically low—operating income cannot cover interest expense, requiring asset sales or restructuring
- Company is operationally unprofitable with negative net margin of -1.4%, negative ROE of -1.2%, and negative ROA of -0.4%
- Revenue declining 7.4% YoY in cyclical building materials sector with profitability deteriorating 59.6% YoY—suggests sector weakness and limited margin recovery
- High leverage with debt/equity of 1.17x and 4.7B long-term debt against only 98.3M cash and 4.0B equity
- Revenue fell 7.4% year over year, pointing to weakening demand and negative operating leverage
- Net income dropped 59.6% and operating margin is down to 5.2%, showing significant profitability compression
- Debt/equity of 1.02x and $4.44B of long-term debt increase balance-sheet risk if earnings remain under pressure
Key Metrics to Watch
- Interest coverage ratio—must return above 1.0x to demonstrate debt sustainability
- Operating margin—needs improvement from 0.5% to 3%+ for profitability
- Revenue stabilization—monitor YoY trends for bottom in construction cycle
- Free cash flow conversion—track OCF generation to assess debt deleveraging progress
- Operating margin trend and net income stabilization
- Free cash flow conversion relative to debt reduction
Builders FirstSource, Inc. (BLDR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.2% FCF margin may limit capital allocation flexibility.
BLDR Profit Margin, ROE & Profitability Analysis
BLDR vs Consumer Sector: How Builders FirstSource, Inc. Compares
How Builders FirstSource, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Builders FirstSource, Inc. Stock Overvalued? BLDR Valuation Analysis 2026
Based on fundamental analysis, Builders FirstSource, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Builders FirstSource, Inc. Balance Sheet: BLDR Debt, Cash & Liquidity
BLDR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
BLDR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.3B | -$47.4M | $-0.43 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Builders FirstSource, Inc. Dividends, Buybacks & Capital Allocation
BLDR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Builders FirstSource, Inc. (CIK: 0001316835)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BLDR
What is the AI rating for BLDR?
Builders FirstSource, Inc. (BLDR) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (HOLD) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLDR's key strengths?
Claude: Positive operating cash flow of 87.5M and free cash flow of 40.7M provide near-term debt service capacity. Gross margins of 28.3% demonstrate product-level profitability and pricing power in core operations. ChatGPT: Strong free cash flow generation of $853.28M supports financial flexibility. Healthy liquidity with a 1.86x current ratio and 1.16x quick ratio.
What are the risks of investing in BLDR?
Claude: Interest coverage ratio of 0.3x is critically low—operating income cannot cover interest expense, requiring asset sales or restructuring. Company is operationally unprofitable with negative net margin of -1.4%, negative ROE of -1.2%, and negative ROA of -0.4%. ChatGPT: Revenue fell 7.4% year over year, pointing to weakening demand and negative operating leverage. Net income dropped 59.6% and operating margin is down to 5.2%, showing significant profitability compression.
What is BLDR's revenue and growth?
Builders FirstSource, Inc. reported revenue of $3.3B.
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 $-0.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BLDR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Builders FirstSource, Inc. has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BLDR stock overvalued or undervalued?
Valuation metrics for BLDR: ROE of -1.2% (sector avg: 18%), net margin of -1.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy BLDR stock in 2026?
Our dual AI analysis gives Builders FirstSource, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BLDR's free cash flow?
Builders FirstSource, Inc.'s operating cash flow is $87.5M, with capital expenditures of $46.7M. FCF margin is 1.2%.
How does BLDR compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -1.4% (avg: 8%), ROE -1.2% (avg: 18%), current ratio 1.76 (avg: 1.5).