# Builders FirstSource (BLDR.US)

Canonical: https://gigainvestors.com/s/BLDR

Analysis as of: 2026-10-16T07:26:58.744Z. Financial observations: FY2001–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $53.68 per share; close as of 2026-10-15.

Estimated value: low $139.29 per share, central $158.49 per share, high $184.06 per share. Buy at or below the central value $158.49 per share. Valuation as of 2026-10-16T07:26:58.744Z; scenarios are not confidence intervals.

Expected annual return: 24.7% at the stated quote. About 24.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.54×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.06×

- FY2021: 0.12×

- FY2022: 0.17×

- FY2023: 0.13×

- FY2024: 0.10×

- FY2025: 0.05×

- LTM to Jun 2026: 0.03×

### moat: pass

- ROIC, median of available years: 21.6%

- ROIC, second-lowest year: 13.6%

- Typical minus recent gross margin: -0.9 pp

- Typical gross margin (annual median): 28.1%

- Recent gross margin (lower of latest and 3-year median): 29.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.4%

- ROIC including acquisitions, ten-year median: 10.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.4%

- FY2017: 13.6%

- FY2018: 20.6%

- FY2019: 18.9%

- FY2020: 22.6%

- FY2021: 37.4%

- FY2022: 59.0%

- FY2023: 35.0%

- FY2024: 29.7%

- FY2025: 11.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $8.5B

- Net income, five-year total: $7.5B

- Return on incremental invested capital: 516.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: 12.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.19×

- FY2022: 1.06×

- FY2023: 1.05×

- FY2024: 1.17×

- FY2025: 1.53×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.4% vs 29.7%

- Per-share earnings: 0.34 to 9.06 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: -1.1%

- Market cap gain: $10B

- Cumulative retained earnings: $373M

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: -1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 51.0%

- Per-share value change: $8.72

- Per-share value, starting three-year median: $0.34

- Per-share value, ending three-year median: $9.06

- Buybacks concentrated in cheaper years (correlation): 0.41

- Average buyback yield: 6.3%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $4.7B

- Cumulative net income, 10 years: $8.5B

- ROIC, first three-year median: 17.4%

- ROIC, last three-year median: 29.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.27

- FY2017: $0.34

- FY2018: $1.76

- FY2019: $1.90

- FY2020: $2.66

- FY2021: $8.48

- FY2022: $16.82

- FY2023: $11.94

- FY2024: $9.06

- FY2025: $3.89

### accounting: pass

- Sloan accruals: -6.9%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.79×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.5%

- FY2017: -4.6%

- FY2018: -2.6%

- FY2019: -8.7%

- FY2020: 1.3%

- FY2021: -0.2%

- FY2022: -8.0%

- FY2023: -7.3%

- FY2024: -7.5%

- FY2025: -6.9%

## Holders

- [Glenn Greenberg](https://gigainvestors.com/CCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Bloomstran](https://gigainvestors.com/SA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 74% since Mar 2024 · "BLDR Cuts 2026 Outlook as Housing Weakness Deepens Margin Pressure" (finance.yahoo.com, Aug 2026) · sales -4.9%

Story as of 2026-10-16T09:58:24.601Z; price observation 2026-10-15.

Price needs cash profits to shrink 12.9% a year for ten years

- 2025-07-31: Builders FirstSource cuts 2025 revenue outlook as tariffs soften housing demand ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/builders-firstsource-cuts-2025-revenue-132807381.html))

- 2025-08-13: BLDR Q2 Deep Dive: Housing Market Weakness Prompts Guidance Reset, Technology Initiatives Advance ([finance.yahoo.com](https://finance.yahoo.com/news/bldr-q2-deep-dive-housing-031853487.html))

- 2025-09-15: Builders FirstSource downgraded at Wedbush on weak housing outlook ([seekingalpha.com](https://seekingalpha.com/news/4494994-builders-firstsource-downgraded-at-wedbush-on-weak-housing-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-02: BLDR Q1 Deep Dive: Margin Pressures Persist Amid Housing Weakness and Cost Headwinds ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/bldr-q1-deep-dive-margin-232455111.html))

- 2026-08-04: BLDR Cuts 2026 Outlook as Housing Weakness Deepens Margin Pressure ([finance.yahoo.com](https://finance.yahoo.com/real-estate/articles/bldr-cuts-2026-outlook-housing-163600965.html))

### Sales · FY2025–2026

sales -4.9%; source https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm; observed 2026-02-17.

- FY2017: $7.0B 

- FY2018: $7.7B 

- FY2019: $7.3B 

- FY2020: $8.6B 

- FY2021: $20B 

- FY2022: $23B 

- FY2023: $17B 

- FY2024: $16B 

- FY2025: $15B 

- FY2026: $14B 

### Gross margin · FY2025

gross margin 29%; source https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm; observed 2026-02-17.

- FY2016: 25.1% 

- FY2017: 24.6% 

- FY2018: 24.9% 

- FY2019: 27.2% 

- FY2020: 26.0% 

- FY2021: 29.4% 

- FY2022: 34.1% 

- FY2023: 35.2% 

- FY2024: 32.8% 

- FY2025: 29.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 15.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm (filed 2026-02-17); FY2025: revenue 15190638000; grossProfit 4409145000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BLDR.US: Builders FirstSource, Inc., together with its subsidiaries, provides building materials for professional builders in new residential construction and repair, and remodeling in the United States. It offers manufactured products, such as factory-built substitutes for job-site framing, wood floor and roof trusses, wall panels, and engineered wood; Ready-Frame, a whole house framing solution; manufactured and semi-custom modular homes, and built in a temperature-controlled facility under its Pine Grove Homes and Pleasant Valley Homes brand names; manufactured housing plans including ranch, community, and single-section homes; manufacturing, assembly, and distribution of windows; and the assembly and distribution of interior and exterior door units. The company also provides millwork, including interior trim and custom features under the Synboard brand name; specialty building products and services comprising vinyl, composite and wood siding, exterior trim, metal studs, cement, roofing, insulation, wallboard, ceilings, cabinets, and hardware; turn-key framing, shell construction, design assistance, and professional installation of products. In addition, it offers drafting, estimating, quoting, and virtual home design services to retailers, distributors, manufacturers, and homebuilders; dimensional lumber, plywood, and oriented strand board products used in on-site house framing. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Irving, Texas.

### Why customers stay

Margins ranged from 29% to 35.2% during 2023–25; it earns 21.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 35.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 32.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 29%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.17418478020536374],[2017,0.13599397512998235],[2018,0.20634371922124414],[2019,0.1886040923590429],[2020,0.22596959413964268],[2021,0.374029532931861],[2022,0.5904882755031601],[2023,0.3503454236061256],[2024,0.2972967850665945],[2025,0.11755245874005796]]; median 0.21615665668044343. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 5 of 10 years; bought back USD 414 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 0; upkeep 42662000; owner earnings 211472000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 0; upkeep 62407000; owner earnings 69367000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 3505000; upkeep 97906000; owner earnings 205191000. Growth capex / owner earnings = 0.01708164588115463.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 0; upkeep 112870000; owner earnings 208977000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 0; upkeep 112082000; owner earnings 318021000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 0; upkeep 227891000; owner earnings 2044877000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 0; upkeep 340152000; owner earnings 2906357000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 476335000; owner earnings 1622495000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 380569000; owner earnings 1259258000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm (filed 2026-02-17); FY2025: growth capex 0; upkeep 362602000; owner earnings 664029000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,4873000],[2020,1424000],[2021,726000],[2022,589000],[2023,194541000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 413958000 USD.

### Are managers owners

Insiders own 2.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BLDR.US SharesStats.PercentInsiders = 2.7119999999999997 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm (filed 2026-02-17); lated to the Company’s growth strategies, including acquisitions, organic growth and digital and technology strategies, including the Company’s ability to drive growth by incorporating artificial intelligence and machine learning solutions into its platform, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, home size and affordability, consumer confidence, labor and supply shortages, tariffs and duties and also lumber and other commodity prices, which may be impacted by changes in tariffs and duties. The Company may not succeed in addressing these and other risks. Further information regarding the risk factors that could affect the Company’s financial and other results can be found in Item 1A of this annual report on Form 10-K and may also be described from time to time in the other reports the Company files with the Securities and Exchange Commission (“SEC”). Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein.

OVERVIEW

We are a leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. The Company operates approximately 585 locations in 43 states across the United States (“U.S.”), which are internally organized into geographic operating divisions. Due to the similar economic characteristics, categories of products, distribution methods and customers, our operating divisions are aggregated into one reportable segment.

Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding.

Builders FirstSource, Inc. is a Delaware corporation formed in 1998 as BSL Holdings, Inc. On October 13, 1999, our name changed to Builders FirstSource, Inc. Our common stock is dual listed on the New York Stock Exchange (“NYSE”) and the NYSE Texas, Inc. (the “NYSE Texas”) under the tradin

### What the price says

The price assumes cash profits shrink 12.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate -0.19229955870664267. Price 53.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.0810349840100785 → FY2025 5.9382679615818. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $9.67 per share

- 2016-11: $11.06 per share

- 2016-12: $10.97 per share

- 2017-01: $10.76 per share

- 2017-02: $12.94 per share

- 2017-03: $14.90 per share

- 2017-04: $16.01 per share

- 2017-05: $13.66 per share

- 2017-06: $15.32 per share

- 2017-07: $15.67 per share

- 2017-08: $16.28 per share

- 2017-09: $17.99 per share

- 2017-10: $18.02 per share

- 2017-11: $20.40 per share

- 2017-12: $21.79 per share

- 2018-01: $21.42 per share

- 2018-02: $19.18 per share

- 2018-03: $19.84 per share

- 2018-04: $18.23 per share

- 2018-05: $19.58 per share

- 2018-06: $18.29 per share

- 2018-07: $17.93 per share

- 2018-08: $15.62 per share

- 2018-09: $14.68 per share

- 2018-10: $12.38 per share

- 2018-11: $13.53 per share

- 2018-12: $10.91 per share

- 2019-01: $13.22 per share

- 2019-02: $13.93 per share

- 2019-03: $13.34 per share

- 2019-04: $13.78 per share

- 2019-05: $14.08 per share

- 2019-06: $16.86 per share

- 2019-07: $17.18 per share

- 2019-08: $19.45 per share

- 2019-09: $20.58 per share

- 2019-10: $22.61 per share

- 2019-11: $25.41 per share

- 2019-12: $25.41 per share

- 2020-01: $24.80 per share

- 2020-02: $22.71 per share

- 2020-03: $12.23 per share

- 2020-04: $18.35 per share

- 2020-05: $20.81 per share

- 2020-06: $20.70 per share

- 2020-07: $23.69 per share

- 2020-08: $30.62 per share

- 2020-09: $32.62 per share

- 2020-10: $30.30 per share

- 2020-11: $37.41 per share

- 2020-12: $40.81 per share

- 2021-01: $38.25 per share

- 2021-02: $43.27 per share

- 2021-03: $46.37 per share

- 2021-04: $48.67 per share

- 2021-05: $44.54 per share

- 2021-06: $42.66 per share

- 2021-07: $44.50 per share

- 2021-08: $53.29 per share

- 2021-09: $51.74 per share

- 2021-10: $58.27 per share

- 2021-11: $69.44 per share

- 2021-12: $85.71 per share

- 2022-01: $67.99 per share

- 2022-02: $74.42 per share

- 2022-03: $64.54 per share

- 2022-04: $61.57 per share

- 2022-05: $65.09 per share

- 2022-06: $53.70 per share

- 2022-07: $68.00 per share

- 2022-08: $58.61 per share

- 2022-09: $58.92 per share

- 2022-10: $61.66 per share

- 2022-11: $63.93 per share

- 2022-12: $64.88 per share

- 2023-01: $79.70 per share

- 2023-02: $84.78 per share

- 2023-03: $88.78 per share

- 2023-04: $94.77 per share

- 2023-05: $115.95 per share

- 2023-06: $136.00 per share

- 2023-07: $144.43 per share

- 2023-08: $145.04 per share

- 2023-09: $124.49 per share

- 2023-10: $108.52 per share

- 2023-11: $134.11 per share

- 2023-12: $166.94 per share

- 2024-01: $173.73 per share

- 2024-02: $195.18 per share

- 2024-03: $208.55 per share

- 2024-04: $182.82 per share

- 2024-05: $160.79 per share

- 2024-06: $138.41 per share

- 2024-07: $167.37 per share

- 2024-08: $174.00 per share

- 2024-09: $193.86 per share

- 2024-10: $171.40 per share

- 2024-11: $186.47 per share

- 2024-12: $142.93 per share

- 2025-01: $167.28 per share

- 2025-02: $138.99 per share

- 2025-03: $124.94 per share

- 2025-04: $119.63 per share

- 2025-05: $107.68 per share

- 2025-06: $116.69 per share

- 2025-07: $127.13 per share

- 2025-08: $138.68 per share

- 2025-09: $121.25 per share

- 2025-10: $116.17 per share

- 2025-11: $112.23 per share

- 2025-12: $102.89 per share

- 2026-01: $114.40 per share

- 2026-02: $104.29 per share

- 2026-03: $82.33 per share

- 2026-04: $79.09 per share

- 2026-05: $76.26 per share

- 2026-06: $89.48 per share

- 2026-07: $66.44 per share

- 2026-08: $66.40 per share

- 2026-09: $57.01 per share

- 2026-10: $53.68 per share

## Annual estimated value (USD per share)

- FY2017: low $3.58 per share, central $4.41 per share, high $5.14 per share

- FY2018: low $8.56 per share, central $11.76 per share, high $13.79 per share

- FY2019: low $22.47 per share, central $32.09 per share, high $37.70 per share

- FY2020: low $30.47 per share, central $42.60 per share, high $49.67 per share

- FY2021: low $38.15 per share, central $54.50 per share, high $64.02 per share

- FY2022: low $70.22 per share, central $100.32 per share, high $117.84 per share

- FY2023: low $170.99 per share, central $244.27 per share, high $286.94 per share

- FY2024: low $142.98 per share, central $162.69 per share, high $188.93 per share

- FY2025: low $140.91 per share, central $160.34 per share, high $186.20 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1316835/000119312526054643/bldr-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.