Beacon Stock Story

BECN
 Stock
  

USD 58.53  1.44  2.40%   

Beacon Roofing Receivables Turnover is quite stable at the moment as compared to the past year. The company's current value of Receivables Turnover is estimated at 8.00. Inventory Turnover is expected to rise to 6.69 this year, although the value of Net Income Per Employee will most likely fall to (8 K). The goal of this thesis is to forecast a future value of Beacon Roofing using technical analysis. What exactly are Beacon Roofing institutional investors should expect in July?
Published over a month ago
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Is there a reason to drop Beacon (NASDAQ:BECN) and trade Cornerstone Building?

Beacon Roofing is UNDERVALUED at 66.14 per share with modest projections ahead.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Beacon Roofing has an asset utilization ratio of 219.02 percent. This suggests that the company is making $2.19 for each dollar of assets. An increasing asset utilization means that Beacon Roofing Suppl is more efficient with each dollar of assets it utilizes for everyday operations.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Beacon Roofing Suppl. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Beacon Roofing

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Beacon Roofing's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Beacon Roofing in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Beacon Roofing. Your research has to be compared to or analyzed against Beacon Roofing's peers to derive any actionable benefits. When done correctly, Beacon Roofing's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Beacon Roofing Suppl.

How important is Beacon Roofing's Liquidity

Beacon Roofing financial leverage refers to using borrowed capital as a funding source to finance Beacon Roofing Suppl ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Beacon Roofing financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Beacon Roofing's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Beacon Roofing, but it might be worth checking our own buy vs. sell analysis

Purchase by Cdr Investment Associates Ix Ltd of 103931 shares of Beacon Roofing

Legal trades by Beacon Roofing insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Beacon insider trading alert for perchase of common stock by Cdr Investment Associates Ix Ltd, the corporate stakeholder, on 29th of July 2022. This event was filed by Beacon Roofing Supply Inc with SEC on 2022-07-29. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Beacon Roofing valued adequately by the market?

Beacon Roofing Suppl has relatively low volatility with skewness of 0.12 and kurtosis of -0.54. However, we advise all investors to independently investigate Beacon Roofing Suppl to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Beacon Roofing's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Beacon Roofing's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Beacon Roofing Implied Volatility

Beacon Roofing's implied volatility exposes the market's sentiment of Beacon Roofing Suppl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Beacon Roofing's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Beacon Roofing stock will not fluctuate a lot when Beacon Roofing's options are near their expiration.

Returns Breakdown

Return on Investment11.71
Return on Assets(0.0111)
Return on Equity(0.0397)
Return Capital0.0296
Return on Sales0.0267

Is Beacon showing proof of lower volatility?

The downside deviation is down to 1.72 as of today. Beacon Roofing Suppl has relatively low volatility with skewness of 0.12 and kurtosis of -0.54. However, we advise all investors to independently investigate Beacon Roofing Suppl to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Beacon Roofing's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Beacon Roofing's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Beacon Roofing Implied Volatility

Beacon Roofing's implied volatility exposes the market's sentiment of Beacon Roofing Suppl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Beacon Roofing's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Beacon Roofing stock will not fluctuate a lot when Beacon Roofing's options are near their expiration.

Our Conclusion on Beacon Roofing

Whereas some other firms within the building products & equipment industry are still a little expensive, even after the recent corrections, Beacon Roofing may offer a potential longer-term growth to institutional investors. To conclude, as of the 12th of June 2022, our analysis shows that Beacon Roofing follows the market closely. The company is undervalued and projects low chance of distress for the next 2 years. Our latest 90 days Buy-Hold-Sell recommendation on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Beacon Roofing Suppl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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