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Builders FirstSource has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Builders FirstSource's Interest Coverage for the quarter that ended in Jun. 2026 was 1.69.
Builders FirstSource's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.34.
As of today, Builders FirstSource's Altman Z-Score is 2.11.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Builders FirstSource has the Financial Strength Rank of 4.
Builders FirstSource Financial Strength Related Terms
BLDR vs AWI, AAON, FBIN: Financial Strength Comparison
For the Building Products & Equipment subindustry, Builders FirstSource's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Builders FirstSource Financial Strength vs Construction Industry
For the Construction industry and Industrials sector, Builders FirstSource's Financial Strength distribution charts can be found below:
* The bar in red indicates where Builders FirstSource's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Builders FirstSource has a Z-score of 2.11, indicating it is in Grey Zones. This implies that Builders FirstSource is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.11 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Builders FirstSource (BLDR) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Builders FirstSource and its competitors. This is 33% below median its historical median of 6.00. Over the past decade, Builders FirstSource's Financial Strength has ranged from 3.00 to 7.00.
Is Builders FirstSource's Financial Strength too high?
Builders FirstSource's current Financial Strength of 4 is 33% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. Overall, Builders FirstSource has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Builders FirstSource's Financial Strength compare to AWI and AAON?
Builders FirstSource's Financial Strength of 4 can be compared against companies in the Construction industry. Historically, Builders FirstSource's own Financial Strength has ranged from 3.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Builders FirstSource and its competitors. Builders FirstSource's current Financial Strength is 4, which is 33% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Builders FirstSource stock overvalued right now?
Based on GuruFocus' analysis, Builders FirstSource (BLDR) is currently considered Significantly Undervalued. The stock's GF Value™ is $129.07, compared to a current price of $64.18 — trading 50.3% below its estimated fair value. The current Financial Strength is 4, which is 33% below median its 10-year median of 6.00. Builders FirstSource's overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Builders FirstSource (BLDR), the current Financial Strength is 4 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Builders FirstSource (BLDR) Overvalued in 2026?
Based on GuruFocus' analysis, Builders FirstSource stock appears to be undervalued.
The current stock price of $64.18 is trading 50.3% below its estimated GF Value™ of $129.07.
GuruFocus considers Builders FirstSource to be Significantly Undervalued.
Key valuation signals for BLDR:
Financial Strength: 4 (33% below median its 10-year median of 6.00)
GF Value™: $129.07 vs. price of $64.18 (50.3% below fair value)
No single metric tells the full story. See the BLDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.
69GF Score
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