Beacon Roofing Supply Inc

Consumer Discretionary
RETAIL: Building Materials
www.becn.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.83B
PE -76
Debt $2.48B
Cash $68.00M
EV $9.25B
FCF $196.70M

Earnings

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Sales & Net Margins

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Earnings	-$89.40M
EBIT	$671.10M
ROE	-5%
ROA	9%
FCF	$196.70M
Equity	$1.90B
Growth Stability	-191%
PE	-76.42
PEG	-6.57
PB	3.6
P/FCF	34.73
P/S	0.71
Price/Cash	0.01
Debt/Equity	1.31
Debt/FCF	12.62
Net Margins	4%
Gross Margins	26%
Op. Margins	7%
Earnings CAGR	5%
Sales Growth YoY	7%
Sales Growth QoQ	4%
Sales CAGR	6%
FCF CAGR	9%
Equity CAGR	6%
Earnings Stability	0.04
Earnings Growth YoY	-10%
Earnings Growth QoQ	14%

Earnings CAGR 5Y	12%
Sales CAGR 5Y	9%
FCF CAGR 5Y	-2%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	92%
Sales CAGR 3Y	92%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	1%
Market Cap	$6.83B
Revenue	$9.66B
Assets	$7.42B
Total Debt	$2.48B
Cash	$68.00M
Shares Outstanding	61.9M
EV	9.25B
Earnings Score	6%
Moat Score	56%
Safety Score	42%
Final Score	35%
Working Capital	1.76B
Current Ratio	1.91
Gross Profit	$2.48B
Shares Growth 3y	-4%
Equity Growth QoQ	8%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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Beacon Roofing Supply Inc manufactures and sells roofing and building materials throughout the United States and Canada. Beacon's key customers consist of contractors, home builders, retailers, wholesale distributors, and building materials suppliers. The company's product portfolio includes both residential and non-residential roofing materials, siding, windows, and waterproofing systems. The majority of revenue is generated from residential and non-residential roofing products. The vast majority of Beacon's revenue comes from the United States.

SEC Filings

Direct access to Beacon Roofing Supply Inc (BECN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Beacon Roofing Supply Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Beacon Roofing Supply Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability 4%

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Beacon Roofing Supply Inc Discounted Cash Flow

Fully customizable DCF calculator online for Beacon Roofing Supply Inc.

Years

Calculation mode

= $3.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$197M	$213M	$232M	$251M	$273M	$296M	$322M	$349M	$379M	$411M	$446M	$4.5B
DCF		$194M	$192M	$189M	$186M	$184M	$182M	$179M	$177M	$174M	$172M	$1.7B
Value	$3.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	12/2022	12/2023	TTM
Net Margins	2%	2%	2%	2%	-0%	-2%	5%	-0%	4%
ROA	-	7%	6%	3%	2%	1%	12%	11%	9%
ROE	-	7%	6%	5%	-2%	-6%	20%	-2%	-5%

Bad Net Margins (3.78%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	12/2022	12/2023	TTM
Debt over FCF	-	12.4	2.87	5.46	17.08	6.51	6.09	3.47	12.62
Debt over Equity	0.28	0.88	0.44	1.43	1.43	1.59	1	1.27	1.31
Growth Stability	-	-	-	100%	-36%	-191%	-	-34%	-191%

Bad Debt/FCF ratio (12.62)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.31)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-191%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	64%	6%	47%	11%	-2%	21%	8%	9%
Earnings YoY growth	-	44%	12%	-2%	-135%	203%	-462%	-107%	12%
Equity YoY growth	-	50%	35%	6%	-1%	-5%	8%	-4%	2%
FCF YoY growth	-	7%	192%	79%	-68%	177%	-28%	114%	-2%