Wholesale-Lumber & Other Construction Materials
Beacon Roofing Supply, Inc., together with its subsidiaries, engages in distribution of residential and non-residential roofing materials, and complementary building products to contractors, home builders, building owners, lumberyards, and retailers in the United States and Canada. It offers pitched roofing and low slope roof products; gutters and sidings; building materials, such as lumber and composite, skylights and window, plywood and OSB, decking and railing, and HVAC products; and foam board, spray foam, roll, batt, mineral wool, fiberglass, and commercial insulation products, as well as radiant barriers and blown-in insulation and equipment. The company also provides above grade and below grade membranes and coatings, deck and floor coatings, plaza deck waterproofing products, damp proofing coatings, and air and vapor barriers; tools and equipment, including power and hand tools, ladders and scaffolding, air tools and compressors, nails, screws and fasteners, generators, work wear and safety gear, job site supplies, tool bags and belts, welding and soldering, cleaning supplies, drill bits, and saw blades; and solar panels, mounting hardware, inverters, and storage and batteries. Beacon Roofing Supply, Inc. was founded in 1928 and is headquartered in Herndon, Virginia.
Discounted Cash Flow Valuation of Beacon Roofing Supply Inc
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $418.1M | $523.1M | $642.7M | $775.3M | $918M | $1.066B | $1.215B | $1.357B | $1.486B | $1.593B | $1.673B | $16.73B |
DCF | $454.8M | $486M | $509.8M | $524.9M | $530.2M | $525.3M | $510.2M | $485.7M | $452.9M | $413.5M | $4.135B | |
Value | $9.028B |
In the chart Earnings are multiplied by this value.
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 | 09-2014 | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 2.3% | 2.5% | 2.2% | 2.3% | 1.5% | -0.49% | -1.5% | 4.5% | -0.3% | -0.5% |
ROA | 6.9% | 7.6% | 6.6% | 6.3% | 3.1% | 2.3% | 0.5% | 12% | 11% | 10% |
ROE | 6.6% | 7.1% | 6.8% | 5.7% | 5.2% | -1.9% | -6% | 20% | -1.5% | -2.5% |
The average Net Margin over the past 5 years is +1.01%.
The trend of Net Margin over the past 5 years is -0.15%.
The average ROA over the past 5 years is +5.9%.
The trend of ROA over the past 5 years is +1.43%.
The average ROE over the past 5 years is +3.58%.
The trend of ROE over the past 5 years is +0.12%.
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 | 09-2014 | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | 2.82 | 12.40 | 2.87 | 5.46 | 17.08 | 6.51 | 6.09 | 3.47 | 5.95 |
Debt Equity | 0.34 | 0.28 | 0.88 | 0.44 | 1.43 | 1.43 | 1.59 | 1.00 | 1.27 | 1.35 |
MIN | ||||||||||
Graham Stability | - | - | - | 100% | 100% | -36% | -190% | - | -34% | -190% |
The Debt/FCF trailing twelve month is 5.95.
The trend of Debt/FCF over the past 5 years is -0.16.
Graham’s Stability measure stands at -1.91.
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 | 09-2017 | 09-2019 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 20% | 16% | 8.7% | 8.2% | -3.3% |
Net Income | - | - | - | - | -8.6% |
Stockholders Equity | 11% | 0.46% | -0.7% | -4.2% | -5% |
FCF | 33% | 19% | 62% | 110% | -27% |
The Revenue CAGR over the past 5 years is +15.82%.
The trend of Revenue growth rate over the past 5 years is -3.26%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is -8.58%.
The Equity CAGR over the past 5 years is +0.46%.
The trend of Equity growth rate over the past 5 years is -5.02%.
The FCF CAGR over the past 5 years is +19.28%.
The trend of FCF growth rate over the past 5 years is -26.94%.