| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 61.8x | 17.3x | Top tier | |
Growth | 9 | -9.4% | 7.1% | Bottom tier | |
Quality | 56 | 4.2% | 4.5% | Around median | |
Safety | 46 | 4.5x | 2.6x | Around median | |
Capital Return | 68 | 0.00% | 0.06% | Top tier | |
Momentum | 7 | -52.4% | -1.6% | Bottom tier | |
Sentiment | 67 | 12 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Builders FirstSource is the largest supplier of building materials and value-added services in the United States, serving the homebuilding ecosystem through a nationwide network that combines significant scale with local relationships. The company generates revenue from the sale of materials and products, including manufactured components, windows, doors, and millwork, alongside installation services and digital tools for homebuilders. Its end markets include single-family construction, multifamily construction, and repair and remodeling, with product bundling and 3D digital twins used to improve customer service and salesforce efficiency.
In Q2 of fiscal year 2026, net sales were $3.9 billion, down approximately 9%, while core organic sales declined 8% in single-family housing, 10% in multifamily housing, and 2% in repair and remodeling. Gross profit was $1.1 billion, down 16.3%, and gross margin fell 260 basis points to 28.1%. The financial statements recorded a net loss of $3.9 million and negative earnings per share of $0.04, while adjusted earnings before interest, taxes, depreciation, and amortization were $329 million, with a margin of 8.5% and adjusted earnings per share of $1.17.
The figures reveal operating pressure beyond the revenue decline; adjusted earnings before interest, taxes, depreciation, and amortization fell 35%, and its margin declined 350 basis points, while operating cash flow decreased to $68 million from $341 million and free cash flow was $32 million. In contrast, the company reduced adjusted selling, general, and administrative expenses by $37 million to $781 million and achieved $28 million in productivity savings, with liquidity of $1.6 billion.
The analyst consensus on BLDR is “Buy,” with an average price target of $87 and a wide range of $66 to $115; even the highest target remains below the 52-week range high of $151.03. No usable price-to-earnings multiple is available in the provided data, while the latest trailing twelve-month data show earnings per share of only approximately $0.95, and the targets' decline from the historical range high reflects the impact of the reduced fiscal year 2026 outlook and declining sales and margins.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The company lowered its outlook on July 30, 2026, after July sales stabilized without the seasonal increase it had expected. The updated outlook assumes an approximately 7% decline in single-family housing starts, a 4% decline in multifamily housing starts, and a 1% decline in repair and remodeling activity. Accordingly, projected sales are now between $14 billion and $14.8 billion, and adjusted earnings before interest, taxes, depreciation, and amortization are between $1 billion and $1.2 billion. Management linked this caution to high interest rates, weak housing affordability, and consumer caution.
Net sales declined approximately 9% to $3.9 billion, with core organic sales falling across all three residential segments. Gross profit fell 16.3% to $1.1 billion, and its margin declined 260 basis points to 28.1%. Adjusted earnings before interest, taxes, depreciation, and amortization also fell 35% to $329 million, and its margin declined to 8.5%. The pressure came from weaker construction volumes, lower prices, operating leverage, and competition to fill production capacity.
Automated analysis for informational purposes only — not investment advice.
The company is targeting $115 million in annualized operating reductions, including $75 million of completed reductions and an additional $40 million that is predominantly fixed in nature. The measures include reducing overtime, temporary labor, incentives, overhead, and discretionary spending, alongside facility consolidation. The company consolidated 36 facilities during fiscal year 2026 and 91 facilities over the past three years, while maintaining on-time and in-full delivery above 90%. It also achieved $28 million in productivity savings in Q2 of fiscal year 2026 and reduced adjusted selling, general, and administrative expenses by $37 million.
On August 25, 2026, the company announced that it had led a $25.3 million Series A funding round for Digs. It signed a five-year commercial agreement to integrate the platform's solutions into its digital system for homebuilders. The move aims to improve salesforce efficiency, customer connectivity, and workflows throughout the construction cycle, alongside the use of 3D digital twins. However, the financial impact of the investment was not specified in the provided data, so its success remains tied to its ability to measurably increase productivity and improve customer service.
The company ended Q2 of fiscal year 2026 with $1.6 billion in liquidity and expects free cash flow of between $400 million and $500 million during fiscal year 2026. On August 12, 2026, it authorized a $500 million repurchase program, although it completed no repurchases during the referenced quarter. It also acquired Precision Design & Trim in June 2026, and the number of its transactions since the BMC merger in 2021 reached approximately 42, representing approximately $2.3 billion in annual sales. In contrast, net debt is approximately 3.6 times adjusted earnings before interest, taxes, depreciation, and amortization, which is above the long-term target and requires discipline in capital allocation.
The company expects Q3 of fiscal year 2026 sales of between $3.6 billion and $3.9 billion and adjusted earnings before interest, taxes, depreciation, and amortization of between $275 million and $325 million. It also expects gross margin to remain close to its current level, within an annual range of between 27.5% and 28.5%. Demand in Texas and Colorado and in multifamily housing deserves particular attention because management described these regions and activities as the weakest. The realization of the $115 million in cost reductions and the company's ability to offset approximately $100 million in estimated fuel pressure will also be decisive factors for margins and cash flow.