BLDR - Embedded Expectations Analysis - 2018 01 31
ï€ Builders FirstSource, Inc. (BLDR:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings with a 15.4x Uniform P/E, suggesting muted expectations for the firm. Moreover, management has concerns about growth, cash flow, and initiativesï€ Specifically, management may have concerns about the sustainability of rising commodity prices, as well as adjusted EBITDA growth. Additionally, they may be concerned about their ability to meet their working capital efficiency estimate 9%-10% of incremental sales in the long term and may lack confidence in their full year free cash flow guidance. Finally, they may lack confidence in their sales force growth initiative
Builders FirstSource, through its subsidiaries is a supplier and manufacturer of building materials, manufactured components and construction services to homebuilders, sub-contractors, remodelers and consumers. The company provides a solution to its customers providing manufacturing, supply and installation of structural and related building products. The company's manufactured products include factory-built roof and floor trusses, and wall panels and stairs. The company also assembles interior and exterior doors into pre-hung units. Additionally, the company supplies its customers with building products not manufactured by the company, such as dimensional lumber and lumber sheet goods and various window, door and millwork lines.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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