Beacon Stock Story


USD 61.64  1.12  1.85%   

Today we may see the proof that Masco Corp would recover much slower from the latest fall as its shares went up 2.00% to Beacon Roofing's 2.2975%. As many rational traders are trying to avoid industrials space, it makes sense to outline Beacon Roofing Suppl a little further and understand how it stands against Masco Corp and other similar entities. We are going to inspect some of the competitive aspects of both Beacon and Masco.
Published over a month ago
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Are retail investors picking up Beacon Roofing (NASDAQ:BECN) or Masco Corp?

By analyzing existing fundamental indicators between Beacon Roofing and Masco, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Masco with a short position in Beacon Roofing. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Beacon or Bed Bath is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

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

Correlation Between Beacon and Bed Bath Beyond

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Beacon Roofing together with similar or unrelated positions with a negative correlation. For example, you can also add Bed Bath to your portfolio. If Bed Bath is not perfectly correlated to Beacon Roofing it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Beacon Roofing for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between BECN and BBBY for more information.


Are you currently holding both Beacon Roofing and Bed Bath in your portfolio?
Please note if you are using this as a pair-trade strategy between Beacon Roofing and Bed Bath, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

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?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Beacon Roofing revenue. Based on the latest financial disclosure, Beacon Roofing Suppl reported 6.82 B of revenue. This is 94.93% higher than that of the Industrials sector and significantly higher than that of the Building Products & Equipment industry. The revenue for all United States stocks is 27.71% higher than that of the entity. As for Masco Corp we see revenue of 8.61 B, which is much higher than that of the Building Products & Equipment

Beacon6.82 Billion
Masco8.61 Billion
6.8 B
8.6 B

Our perspective of the latest Beacon Roofing rise

Latest Jensen Alpha is up to -0.03. Price may slide again. Beacon Roofing Suppl exhibits very low volatility with skewness of -1.36 and kurtosis of 4.48. However, we advise investors to further study Beacon Roofing Suppl technical indicators to make sure all market info is available and is reliable. 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.

The Current Takeaway on Beacon Roofing Investment

Whereas some firms in the building products & equipment industry are either recovering or due for a correction, Beacon Roofing may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 3rd of July 2022, we believe that Beacon Roofing is currently undervalued with below average probability of distress in the next two years. Our actual 90 days buy-hold-sell advice on the company is 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 Vlad Skutelnik 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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