The company conducts business under
Industrials sector and is part of
Building Products & Equipment industry.
Our advice module provides unbiased investment recommendation that can be used to complement current
average analyst sentiment on Beacon Roofing Suppl. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
Investing in Beacon Roofing, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Beacon Roofing along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that 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 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 toward taking a position in Beacon Roofing Supply.
How important is Beacon Roofing's Liquidity
Beacon Roofing
financial leverage refers to using borrowed capital as a funding source to finance Beacon Roofing Supply 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. Financial leverage can amplify the potential profits to Beacon Roofing's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Beacon Roofing's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Beacon Roofing's total debt and its cash.
Beacon Roofing Gross Profit
Beacon Roofing Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Beacon Roofing previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Beacon Roofing Gross Profit growth over the last 10 years. Please check Beacon Roofing's
gross profit and other
fundamental indicators for more details.
Beacon Roofing Correlation with Peers
Investors in Beacon can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Beacon Roofing Supply. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Beacon Roofing and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Beacon is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Beacon for more details
Is Beacon Roofing valued appropriately by the market?
We consider Beacon Roofing very steady.
Beacon Roofing Suppl secures Sharpe Ratio (or Efficiency) of 0.0169, which signifies that the company had 0.0169% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Beacon Roofing Suppl, which you can use to evaluate the future volatility of the firm. Please confirm Beacon Roofing Suppl
risk adjusted performance of 0.0728, and Mean Deviation of 1.55 to double-check if the risk estimate we provide is consistent with the expected return of 0.0341%.
Another setback for Beacon Roofing institutional investors
Semi variance is down to 3.38. It may entail a possible volatility slide. Beacon Roofing Suppl has relatively low volatility with skewness of 0.19 and kurtosis of 0.13. 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 bullish 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.
Our Conclusion on Beacon Roofing
When is the right time to buy or sell Beacon Roofing Suppl? Buying stocks such as Beacon Roofing isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
Taking everything into account, as of the 30th of September 2022, our analysis shows that Beacon Roofing almost mirrors the market. The company is
undervalued and projects
below average probability of bankruptcy for the next 2 years. Our primary 90 days 'Buy-vs-Sell' recommendation on the company is
Strong Buy.
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Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Supply. Please refer to our
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