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BLDR (Builders FirstSource) Financial Strength : 6 (As of Mar. 2025)


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What is Builders FirstSource Financial Strength?

Builders FirstSource has the Financial Strength Rank of 6.

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 Mar. 2025 was 2.84. Builders FirstSource's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.35. As of today, Builders FirstSource's Altman Z-Score is 3.10.


Competitive Comparison of Builders FirstSource's Financial Strength

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's Financial Strength Distribution in the 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.


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Builders FirstSource Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Builders FirstSource's Interest Expense for the months ended in Mar. 2025 was $-65 Mil. Its Operating Income for the months ended in Mar. 2025 was $184 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $4,998 Mil.

Builders FirstSource's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*184.441/-64.892
=2.84

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Builders FirstSource's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(111.289 + 4997.937) / 14629.984
=0.35

3. Altman Z-Score.

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 3.10, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.1 is strong.

* 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  (NYSE:BLDR) Financial Strength Explanation

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 6.


Builders FirstSource Financial Strength Related Terms

Thank you for viewing the detailed overview of Builders FirstSource's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Builders FirstSource Business Description

Traded in Other Exchanges
Address
6031 Connection Drive, Suite 400, Irving, TX, USA, 75039
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.
Executives
Dirkson R Charles director 50 MAIN STREET, 4TH FLOOR, WHITE PLAINS NY 10606
Paul S Levy director, 10 percent owner JOSEPH LITTLEJOHN & LEVY, 450 LEXINGTON AVE STE 3350, NEW YORK NY 10036
David E Rush officer: SVP - COO - East 2001 BRYAN ST., SUITE 1600, DALLAS TX 75201
Cleveland A Christophe director C/O TSG CAPITAL GROUP, 177 BROAD STREET 12 TH FLOOR, STAMFORD CT 06091
Craig Arthur Steinke director 19 NORFIELD ROAD, WESTON CT 06883
Michael Hiller officer: President - Central Division 2001 BRYAN ST STE 1600, DALLAS TX 75201
Paul M Mccrobie officer: President - East Division 2001 BRYAN STREET, SUITE 1600, DALLAS TX 75201
Boydston Cory Jacobs director C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27617
Michael Alan Farmer officer: President - Commercial Ops C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27609
Timothy D Johnson officer: EVP & General Counsel 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Jami Lynn Coulter officer: Principal Accounting Officer 2001 BRYAN ST., SUITE 1600, DALLAS TX 75201
Floyd F Sherman director, officer: President & CEO BUILDERS FIRSTSOURCE INC., 2001 BRYAN STREET, SUITE 1600, DALLAS TX 75201
Amy B Messersmith officer: Chief People Officer 2001 BRYAN ST STE 1600, DALLAS TX 75201
James Oleary director
David W Bullock director C/O GRAHAM PACKAGING HOLDINGS COMPANY, 2401 PLEASANT VALLEY ROAD, YORK PA 17402