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Here's How Much a $1000 Investment in Builders FirstSource Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 approximately 570 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 2022, the company made six acquisitions for $722.3 million.
As of Sep 30, 2023, the company had cash and cash equivalents of $88.1 million, up from $80.4 million reported at 2022-end. It has enough liquidity to meet the company’s current debt maturity of $3.9 million. During the first nine months of 2023, net cash provided by operating activities was $1.7 billion, down from $2.63 billion reported in the comparable year-ago period.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Builders FirstSource a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2014 would be worth $22,523.28, or a gain of 2,152.33%, as of February 19, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.24% and the price of gold increased 47.57% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for BLDR.
Shares of Builders FirstSource have outperformed its industry in the past six months. The company is benefiting from digital enhancements, a strong value-added product portfolio and the positive impact of operational initiatives implemented in recent years. Focus on cost synergies and strategic acquisitions bodes well. In the long term, the company expects 3-5% of annual productivity improvement as the company is working hard to leverage best practices and technology. This enables it to become more efficient and productive in serving customers. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts’ optimism about the stock’s growth potential. However, high costs and persistent economic risks are primary headwinds.
Over the past four weeks, shares have rallied 6.54%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Builders FirstSource Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 approximately 570 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 2022, the company made six acquisitions for $722.3 million.
As of Sep 30, 2023, the company had cash and cash equivalents of $88.1 million, up from $80.4 million reported at 2022-end. It has enough liquidity to meet the company’s current debt maturity of $3.9 million. During the first nine months of 2023, net cash provided by operating activities was $1.7 billion, down from $2.63 billion reported in the comparable year-ago period.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Builders FirstSource a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2014 would be worth $22,523.28, or a gain of 2,152.33%, as of February 19, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.24% and the price of gold increased 47.57% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for BLDR.
Shares of Builders FirstSource have outperformed its industry in the past six months. The company is benefiting from digital enhancements, a strong value-added product portfolio and the positive impact of operational initiatives implemented in recent years. Focus on cost synergies and strategic acquisitions bodes well. In the long term, the company expects 3-5% of annual productivity improvement as the company is working hard to leverage best practices and technology. This enables it to become more efficient and productive in serving customers. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts’ optimism about the stock’s growth potential. However, high costs and persistent economic risks are primary headwinds.
Over the past four weeks, shares have rallied 6.54%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.