2024-02-12 07:22:08 ET
Summary
- Builders FirstSource is a beneficiary of the shortage of 4 million homes in the US and the recent pullback in mortgage rates.
- The company is well-positioned for above-market growth and seeks to capture more market share in the single-family US new construction building materials industry.
- Strong revenue, EBITDA, and free cash flow growth are forecasted over the next 5 years, with a 22% upside potential for the stock.
Quick note before reading: I wrote on Builders FirstSource (BLDR) back in March 2022 in my article " Builders FirstSource: Management Guidance Suggests 46% Upside ." Since then, the stock has risen 154% (outperforming the S&P 500 by ~134%). It might make sense to read that first and then jump into this piece to give a full overview as to my thoughts a few years back vs how I'm thinking about the company now.
Investment Thesis/Business Overview
Builders FirstSource manufactures and supplies building materials to homes around the United States. The company also provides professional installation services to homeowners looking to do remodels, additions, or build new homes. To put it more broadly, the company supports home construction projects....
Read the full article on Seeking Alpha
For further details see:
Builders FirstSource: Capitalizing On The Structural Home Shortage In The U.S.