Builders FirstSource, Inc. cash flow to debt ratio of 21.53% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Builders FirstSource, Inc.'s free cash flow has decreased 42.81% from $1.49B last year to $853.28M, signaling decreasing performance

Builders FirstSource, Inc.'s debt to equity ratio is 1.31, which means that the company's assets are unhealthy financed, signaling financial risk.

Builders FirstSource, Inc.'s debt has increased relative to shareholder equity from 1.01 last year to 1.31 today, signaling weakened financials

Builders FirstSource, Inc. has a net debt to EBITDA ratio of 3.97x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Builders FirstSource, Inc.'s interest coverage ratio is 1.52, which means that the company struggles to meet interest obligations, signaling financial risk.

Builders FirstSource, Inc.'s profit margin has decreased (89.20%) in the last year from 6.57% to 0.71%, signaling decreasing performance

Builders FirstSource, Inc.'s short-term assets of $2.93B exceed its short-term liabilities of $1.57B

Builders FirstSource, Inc.'s return on assets of 0.91% is lower than the 5.00% threshold, indicating inefficient asset utilization

Builders FirstSource, Inc.'s return on equity of 2.46%, is lower than 15.00%, indicating bad performance

Builders FirstSource, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Builders FirstSource, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Builders FirstSource, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Builders FirstSource, Inc. has a free cash flow yield of 11.02%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Builders FirstSource, Inc.'s yearly earnings has decreased 59.63% since last year from $1.08B to $435.20M, signaling decreasing performance

Builders FirstSource, Inc.'s yearly revenue has decreased 7.38% since last year from $16.40B to $15.19B, signaling decreasing performance

ROIC 3.14% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Builders FirstSource, Inc.'s 3-year revenue CAGR of -12.57% is negative, indicating declining revenue over the past 3 years

Builders FirstSource, Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Builders FirstSource, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Builders FirstSource, Inc. is undervalued relative to its fair value price of 87.52 based on Discounted Cash Flow model

Builders FirstSource, Inc. has an earnings yield of 1.31%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Builders FirstSource, Inc. is overvalued relative to its fair value price of 37.78 based on EBITDA multiple model

Builders FirstSource, Inc. has an EV/EBITDA ratio of 9.59x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Builders FirstSource, Inc. is undervalued relative to its fair value price of 317.99 based on Earnings Fair Value model

Builders FirstSource, Inc. has a PEG-ratio over 1 which is considered overvalued

Builders FirstSource, Inc. has a price-to-book ratio of 1.95x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Builders FirstSource, Inc. has a price-to-sales ratio of 0.54x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue