📊 BLDR Key Takeaways
Is Builders FirstSource, Inc. (BLDR) a Good Investment?
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.
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
- 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
- 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
- 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
- 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
- Quarterly revenue trends and comparable store sales growth to assess stabilization in demand
- Net income recovery and operating margin expansion as cost structure adjusts to lower revenue base
- Free cash flow sustainability and debt reduction trajectory given leverage concerns
- Gross margin stability amid potential pricing pressures and inventory management effectiveness
- 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
Builders FirstSource, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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.
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 HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLDR's key strengths?
Claude: 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. 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: 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. 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 $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?
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 April 2026, Builders FirstSource, Inc. has a HOLD rating with 70% 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 10.0% (sector avg: 18%), net margin of 2.9% (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 HOLD 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 $1.2B, with capital expenditures of $362.6M. FCF margin is 5.6%.
How does BLDR compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.9% (avg: 8%), ROE 10.0% (avg: 18%), current ratio 1.86 (avg: 1.5).