Builders FirstSource

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The US Homebuilding sector is cyclical and I believe that it is going into the downtrend leg of the next cycle. Apart from hunting for opportunities in the homebuilding sector, I thought that there should also be opportunities in the companies supplying to them.

That is why I started to look at US building materials companies. Builders FirstSource is one of them. This is a company with a good revenue growth.

My analysis showed that its revenue growth was driven mainly by acquisitions. But this revenue growth has not translated to competitive operating advantages.
I carried out a Greenwald Asset Value vs Earnings Power Value comparison to determine its growth status. The Greenwald analysis based on the normalized scenario showed that it is not a high-growth stock. There is no margin of safety based on Greenwald return formula.
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If you want to see insights for other US building materials companies, I have infographics of them in Are these outstanding stocks - what to consider? (Other Stock Exchanges)
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