Builders FirstSource, Inc. (BLDR)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient value investor, and Builders FirstSource is a cyclical building-products supplier, not a franchise I would pay up for. It sells to professional homebuilders, and its scale and manufactured framing products may create some local distribution advantages, but demand depends on housing and repair/remodel activity. The filed numbers show sharp deterioration: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.9B and net loss was $3.9M, or diluted EPS -$0.04; in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $3.3B and net loss was $47.4M. Compare fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $4.2B and net income was $185.0M. For FY2025, the year ended 2025-12-31, revenue was $15.2B and net income $435.2M, down from FY2024 revenue of $16.4B and net income of $1.1B, and FY2023 revenue of $17.1B and net income of $1.5B. That is a weakening earnings trend. Financial health is mixed: FairStock calculations show ROE of 2.51%, debt-to-equity of 1.31, Piotroski F-Score 6/9, and Altman Z-Score 0.99, which is not comforting. But trailing free cash flow is $639.3M, an 11.5% FCF yield on the $5.6B market cap. At the 2026-10-13 close of $51.71, FairStock's P/E is 56.21, P/B is 1.39, EV/EBITDA is 10.40, and Graham Number is $27.76, implying a negative margin of safety of -86.28%. FairStock's Lynch category is slow grower. Today, cash generation is the main attraction; earnings and balance-sheet risk are the main caution.

In plain English: Builders FirstSource sells building materials and factory-made parts to home builders in the United States. The business looks weak right now: sales and profits have fallen, and two recent quarters lost money. At the latest close, the price looks expensive compared with recent earnings and a calculated value, even though the company still generates positive cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer