BLDRBuilders FirstSource
Is the business good?
The checks split: earnings fully cash-backed (3.0×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BLDR?
Builders FirstSource earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.0 points below what the capital costs: growth destroys value
- Operating margin
- 3.0%
Operating margin · Building Products & Equipment median 9.3% · 12 months to Q2 2026
- Cash conversion
- 2.98×
Cash conversion · 1.67× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.3% |
| FY2021 | 12% |
| FY2022 | 17% |
| FY2023 | 13% |
| FY2024 | 9.7% |
| FY2025 | 5.2% |
Details›
- Gross margin12 months to Q2 2026
- 29%
- Operating margin12 months to Q2 2026
- 3.0%
- Net margin12 months to Q2 2026
- 0.71%
- Free cash flow margin
- 4.4%
- Revenue, trailing twelve months
- $14.4B
- Free cash flow, trailing twelve months
- $639M
- Net income, trailing twelve months
- $103M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Building Products & Equipment
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