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10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Builders FirstSource's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 7.57%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Builders FirstSource's 10-Year ROIIC % or its related term are showing as below:
BLDR's 10-Year ROIIC % is ranked better than 63.8% of 1475
companies
in the Construction industry
Industry Median: 3.16
vs BLDR: 7.57
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Builders FirstSource 10-Year ROIIC % Related Terms
Builders FirstSource 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Builders FirstSource's 10-Year ROIIC % can be seen below:
* 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.
BLDR vs AAON, OC, SPXC: 10-Year ROIIC % Comparison
For the Building Products & Equipment subindustry, Builders FirstSource's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Builders FirstSource's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Builders FirstSource's 10-Year ROIIC % falls into.
Builders FirstSource's 10-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 667.8628344 (Dec. 2025) - 90.755 (Dec. 2015) )
/
( 9869.936 (Dec. 2025) - 2245.209 (Dec. 2015) )
=
577.1078344
/
7624.727
=
7.57%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Builders FirstSource (BLDR) has a 10-Year ROIIC % of 7.57 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Builders FirstSource and its competitors. According to the industry distribution chart, Builders FirstSource ranks #534 out of 1475 companies in the Construction industry, placing it in the top 36.2%.
Is Builders FirstSource's 10-Year ROIIC % too high?
Builders FirstSource's current 10-Year ROIIC % is 7.57. The Construction industry median 10-Year ROIIC % is 3.16. Builders FirstSource's value of 7.57 is 139.6% above this industry median. Based on the distribution chart, Builders FirstSource ranks #534 out of 1475 companies in the Construction industry, which is above the industry midpoint. Overall, Builders FirstSource has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Builders FirstSource's 10-Year ROIIC % compare to AAON and OC?
According to the Construction industry distribution chart, Builders FirstSource ranks #534 out of 1475 companies for 10-Year ROIIC %. This puts Builders FirstSource in the upper half of its industry. The industry median 10-Year ROIIC % is 3.16. Builders FirstSource's value of 7.57 is 139.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Construction company?
The median 10-Year ROIIC % among Construction companies is 3.16, based on 1,475 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Builders FirstSource's current 10-Year ROIIC % of 7.57 is 139.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Builders FirstSource and its competitors. For the Construction industry, the median 10-Year ROIIC % is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Builders FirstSource's current 10-Year ROIIC % is 7.57. 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 $133.72, compared to a current price of $75.53 — trading 43.5% below its estimated fair value. The current 10-Year ROIIC % is 7.57 and 139.6% above the Construction industry median of 3.16. Builders FirstSource's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Builders FirstSource (BLDR), the current 10-Year ROIIC % is 7.57 as of Dec. 2025. 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 $75.53 is trading 43.5% below its estimated GF Value™ of $133.72.
GuruFocus considers Builders FirstSource to be Significantly Undervalued.
Key valuation signals for BLDR:
10-Year ROIIC %: 7.57
GF Value™: $133.72 vs. price of $75.53 (43.5% below fair value)
Industry Position: 139.6% above the Construction median (#534 of 1475)
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.
81GF Score
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