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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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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 550 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 Mar 31, 2023, Builders FirstSource had cash and cash equivalents of $144 million compared with $80 million at 2022-end. The company had liquidity of $1.4 billion at Mar 31, 2023, including approximately $1.2 billion in net borrowing available under the revolving credit facility.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Builders FirstSource ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $22,770.90, or a gain of 2,177.09%, as of June 30, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 173.70% and the price of gold went up 48.68% over the same time frame.
Looking ahead, analysts are expecting more upside for BLDR.
Shares of Builders FirstSource have outperformed the industry in the past six months. Despite ongoing raw material supply issues, the company has been driving growth through increased net sales and gross margins, as well as contributions from acquisitions. The company has been benefiting from its focus on cost synergies, strategic acquisitions and demand arising from repair and remodeling activities. It continues to focus on investment in innovations and enhancing digital solutions for customers. Although high raw material costs, supply-related constraints and stiff competition are concerns, earnings estimates for 2023 have moved north in the past 60 days, depicting analysts' optimism over the company's growth potential.
Over the past four weeks, shares have rallied 17.53%, and there have been 7 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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If You Invested $1000 in Builders FirstSource a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 550 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 Mar 31, 2023, Builders FirstSource had cash and cash equivalents of $144 million compared with $80 million at 2022-end. The company had liquidity of $1.4 billion at Mar 31, 2023, including approximately $1.2 billion in net borrowing available under the revolving credit facility.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Builders FirstSource ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $22,770.90, or a gain of 2,177.09%, as of June 30, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 173.70% and the price of gold went up 48.68% over the same time frame.
Looking ahead, analysts are expecting more upside for BLDR.
Shares of Builders FirstSource have outperformed the industry in the past six months. Despite ongoing raw material supply issues, the company has been driving growth through increased net sales and gross margins, as well as contributions from acquisitions. The company has been benefiting from its focus on cost synergies, strategic acquisitions and demand arising from repair and remodeling activities. It continues to focus on investment in innovations and enhancing digital solutions for customers. Although high raw material costs, supply-related constraints and stiff competition are concerns, earnings estimates for 2023 have moved north in the past 60 days, depicting analysts' optimism over the company's growth potential.
Over the past four weeks, shares have rallied 17.53%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.