Is the business good?
How good a business is BLDR?
Builders FirstSource earns 5.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.7%
Return on invested capital · cost of capital 9.0% · 3.3 points below what the capital costs: growth destroys value
- Operating margin
- 4.2%
Operating margin · Building Products & Equipment median 16% · 12 months to Q1 2026
- Cash conversion
- 2.96×
Cash conversion · 1.42× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.9%
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 Q1 2026
- 30%
- Operating margin12 months to Q1 2026
- 4.2%
- Net margin12 months to Q1 2026
- 2.0%
- Free cash flow margin
- 5.8%
- Revenue, trailing twelve months
- $14.8B
- Free cash flow, trailing twelve months
- $862M
- Net income, trailing twelve months
- $291M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Building Products & Equipment
Ranks #17 of 18 by Smart Score