- Builders FirstSource has experienced substantial weakness in its share price of late, as investors come to terms with the impact of the higher interest rate environment.
- Investors are worried that higher interest rates will lead to a meaningful decline in demand for new homes.
- Meanwhile, the unavoidable fact remains that there's a low housing inventory. Meaning that demand for housing is high.
- Paying approximately 7x free cash flow, with consistent buybacks programs, makes this stock very attractive.
- Share repurchase program of $1 billion announced in February, equals nearly 10% of its market cap.
For further details see:
Builders FirstSource: Higher Interest Rates Already Priced In, Cheaply Valued Stock