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If You Invested $1000 in Builders FirstSource a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Builders FirstSource (BLDR - Free Report) ten years ago? It may not have been easy to hold on to BLDR for all that time, but if you did, how much would your investment be worth today?
Builders FirstSource's Business In-Depth
With that in mind, let's take a look at Builders FirstSource's main business drivers.
Builders FirstSource is the largest supplier of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers and consumers. The company recently completed its merger with BMC Stock Holdings, Inc.
The company operates in more than 565 locations in 42 states all over the United States.
Builders FirstSource offers an integrated solution to its customers by providing manufacturing, supply and installation of a full range of structural and related building products. Its manufactured products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, as well as engineered wood that the company designs, cuts, and assembles specifically for each home.
Following the merger with BMC Stock Holdings, Inc. on Jan 1, 2021, Builders FirstSource reorganized the structure of its internal organization. Given similar economic characteristics, categories of products, distribution methods and customers, its three operating divisions (namely East, Central, and West) are aggregated into one reportable segment.
In 2021, the company made seven acquisitions for $1.2 billion. It announced various acquisitions, including Apollo software, California TrusFrame, LLC, WTS Paradigm, LLC, Alliance Lumber and John’s Lumber. In 2022, BLDR expects to invest approximately $500 million in accretive M&A.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Builders FirstSource, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in July 2012 would be worth $17,351.06, or a 1,635.11% gain, as of July 28, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 190.31% and gold's return of 2.62% over the same time frame.
Looking ahead, analysts are expecting more upside for BLDR.
Shares of Builders FirstSource have outperformed the industry over the past year. The company has been driving growth from an increase in net sales (up 36.1% year over year) and gross margin (up 670 basis points) and adjusted EBITDA (up 119.8%) in first quarter amid continuous raw material supply woes. The company is benefiting from its focus on cost synergies, strategic acquisitions, and robust demand arising from solid housing and repair & remodeling activities. Builders FirstSource continues to focus on investing in innovations and enhancing digital solutions for customers. That said, high cost, supply-related constraints and stiff competition are concerns.
The stock is up 23.87% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.
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If You Invested $1000 in Builders FirstSource a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Builders FirstSource (BLDR - Free Report) ten years ago? It may not have been easy to hold on to BLDR for all that time, but if you did, how much would your investment be worth today?
Builders FirstSource's Business In-Depth
With that in mind, let's take a look at Builders FirstSource's main business drivers.
Builders FirstSource is the largest supplier of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers and consumers. The company recently completed its merger with BMC Stock Holdings, Inc.
The company operates in more than 565 locations in 42 states all over the United States.
Builders FirstSource offers an integrated solution to its customers by providing manufacturing, supply and installation of a full range of structural and related building products. Its manufactured products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, as well as engineered wood that the company designs, cuts, and assembles specifically for each home.
Following the merger with BMC Stock Holdings, Inc. on Jan 1, 2021, Builders FirstSource reorganized the structure of its internal organization. Given similar economic characteristics, categories of products, distribution methods and customers, its three operating divisions (namely East, Central, and West) are aggregated into one reportable segment.
In 2021, the company made seven acquisitions for $1.2 billion. It announced various acquisitions, including Apollo software, California TrusFrame, LLC, WTS Paradigm, LLC, Alliance Lumber and John’s Lumber. In 2022, BLDR expects to invest approximately $500 million in accretive M&A.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Builders FirstSource, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in July 2012 would be worth $17,351.06, or a 1,635.11% gain, as of July 28, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 190.31% and gold's return of 2.62% over the same time frame.
Looking ahead, analysts are expecting more upside for BLDR.
Shares of Builders FirstSource have outperformed the industry over the past year. The company has been driving growth from an increase in net sales (up 36.1% year over year) and gross margin (up 670 basis points) and adjusted EBITDA (up 119.8%) in first quarter amid continuous raw material supply woes. The company is benefiting from its focus on cost synergies, strategic acquisitions, and robust demand arising from solid housing and repair & remodeling activities. Builders FirstSource continues to focus on investing in innovations and enhancing digital solutions for customers. That said, high cost, supply-related constraints and stiff competition are concerns.
The stock is up 23.87% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.