Builders Stock Story

BLDR
 Stock
  

USD 68.37  1.59  2.38%   

Builders Firstsource is currently does not generate positive expected returns and assumes 3.5776% risk (volatility on return distribution) over the 90 days horizon. As many adventurous traders are excited about industrials space, it is only fair to sum up the risk of shorting Builders Firstsource based on its current volatility spike. We will go over odds for Builders Firstsource to generate above-average margins before the next press release. Builders Firstsource's seemingly stabilizing volatility may still impact the value of the stock as we estimate Builders Firstsource as currently undervalued. The real value, based on our calculations, is getting close to 79.55 per share.
Published over three months ago
View all stories for Builders Firstsource | View All Stories

Should you add Builders (NYSE:BLDR) to your portfolio?

Builders Firstsource currently holds roughly 224.74 M in cash with 1.01 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.17.
Volatility is a rate at which the price of Builders Firstsource or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Builders Firstsource may increase or decrease. In other words, similar to Builders's beta indicator, it measures the risk of Builders Firstsource and helps estimate the fluctuations that may happen in a short period of time. So if prices of Builders Firstsource fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Builders Firstsource's Liquidity

Builders Firstsource financial leverage refers to using borrowed capital as a funding source to finance Builders Firstsource ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Builders Firstsource 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 Builders Firstsource'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 Builders Firstsource, but it might be worth checking our own buy vs. sell analysis

Builders Firstsource Volatility Drivers

Builders Firstsource unsystematic risk is unique to Builders Firstsource and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Builders Firstsource you can also buy 3M Company. You can also mitigate this risk by investing in the building products & equipment sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Builders Firstsource important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Builders Firstsource income statement and balance sheet. Here are more details about Builders volatility.
0.980.99-0.080.980.830.850.920.991.00.110.910.990.920.990.980.60.920.920.990.940.930.87-0.960.980.91-0.460.06-0.180.530.470.860.910.96-0.171.0-0.47-0.320.95-0.55-0.480.920.950.950.930.89-0.370.20.680.880.450.90.910.940.80.980.910.910.960.930.990.990.931.00.97
0.980.99-0.120.950.820.930.970.980.990.00.970.990.970.990.990.480.970.970.980.980.960.94-0.960.980.97-0.440.09-0.080.590.550.820.890.98-0.220.97-0.37-0.360.98-0.45-0.460.910.980.980.880.85-0.330.120.730.830.390.870.830.940.831.00.970.970.990.980.980.960.980.990.98
0.990.99-0.020.960.830.890.960.980.990.010.940.990.950.990.990.510.950.950.980.960.950.92-0.970.990.95-0.470.11-0.120.560.530.830.90.96-0.210.98-0.39-0.350.98-0.47-0.480.910.970.950.890.86-0.350.150.730.850.410.880.860.930.80.990.950.940.980.950.980.970.961.00.99
-0.08-0.12-0.02-0.140.05-0.19-0.11-0.13-0.1-0.26-0.17-0.14-0.15-0.14-0.14-0.16-0.15-0.15-0.14-0.14-0.17-0.090.11-0.08-0.15-0.210.2-0.14-0.23-0.08-0.22-0.2-0.23-0.29-0.080.4-0.25-0.040.36-0.2-0.19-0.11-0.25-0.18-0.22-0.15-0.050.12-0.21-0.04-0.21-0.07-0.26-0.45-0.14-0.13-0.12-0.11-0.23-0.13-0.15-0.08-0.050.07
0.980.950.96-0.140.860.780.860.990.980.180.850.950.860.950.940.670.860.860.960.870.880.79-0.910.930.84-0.41-0.13-0.290.440.330.840.870.92-0.250.99-0.55-0.350.88-0.63-0.430.890.890.930.950.88-0.40.110.580.870.480.880.90.920.720.940.850.840.910.880.990.970.860.970.91
0.830.820.830.050.860.640.740.860.85-0.030.70.790.740.790.790.480.740.740.810.740.740.66-0.810.780.73-0.36-0.2-0.260.30.180.780.790.82-0.30.87-0.54-0.290.79-0.62-0.370.80.790.830.90.83-0.34-0.040.610.840.50.80.760.830.490.790.720.710.790.760.860.810.750.860.79
0.850.930.89-0.190.780.640.970.840.87-0.150.980.890.970.890.920.220.970.970.860.970.960.96-0.860.890.97-0.350.190.170.730.740.680.780.91-0.220.82-0.17-0.360.93-0.21-0.360.80.940.90.680.68-0.190.060.810.650.220.740.620.830.840.930.980.980.950.960.840.810.970.870.9
0.920.970.96-0.110.860.740.970.910.94-0.130.990.951.00.950.970.31.01.00.931.00.970.98-0.940.961.0-0.440.220.080.660.670.750.850.96-0.20.9-0.23-0.360.99-0.29-0.450.860.980.950.780.77-0.270.110.80.740.30.810.720.890.860.981.01.00.990.990.910.891.00.940.96
0.990.980.98-0.130.990.860.840.910.990.120.90.980.910.980.970.610.910.910.980.920.920.86-0.940.960.9-0.43-0.04-0.220.50.420.850.890.95-0.231.0-0.49-0.350.93-0.58-0.450.910.940.950.940.89-0.380.120.650.870.460.890.890.940.770.970.90.90.950.931.00.980.920.990.95
1.00.990.99-0.10.980.850.870.940.990.060.930.990.940.990.990.560.940.940.990.950.940.89-0.970.980.93-0.450.04-0.160.540.480.860.910.97-0.21.0-0.46-0.330.96-0.54-0.470.930.960.970.930.89-0.360.150.70.880.440.90.880.950.80.990.930.930.970.951.00.980.941.00.97
0.110.00.01-0.260.18-0.03-0.15-0.130.120.06-0.090.08-0.10.080.020.77-0.1-0.10.11-0.09-0.03-0.280.080.03-0.16-0.09-0.46-0.42-0.11-0.210.10.03-0.050.180.1-0.370.03-0.11-0.37-0.10.05-0.05-0.040.150.17-0.190.41-0.360.180.310.080.290.080.10.03-0.15-0.14-0.06-0.10.110.19-0.120.04-0.06
0.910.970.94-0.170.850.70.980.990.90.93-0.090.941.00.940.960.311.01.00.921.00.960.97-0.910.940.99-0.40.190.110.670.680.740.830.95-0.190.88-0.22-0.350.97-0.28-0.410.850.970.940.750.75-0.240.110.780.720.280.80.690.880.870.971.01.00.980.990.90.870.990.920.94
0.990.990.99-0.140.950.790.890.950.980.990.080.940.951.01.00.540.950.951.00.960.950.91-0.981.00.95-0.480.14-0.10.590.560.860.920.97-0.10.98-0.43-0.280.97-0.51-0.50.930.980.970.90.89-0.340.230.690.880.430.90.890.960.870.990.950.940.970.960.980.990.950.990.97
0.920.970.95-0.150.860.740.971.00.910.94-0.11.00.950.950.970.321.01.00.931.00.970.97-0.940.961.0-0.420.20.090.670.670.770.860.96-0.170.9-0.26-0.330.98-0.32-0.430.870.990.960.780.79-0.260.110.780.760.310.820.720.910.870.981.01.00.990.990.910.890.990.940.95
0.990.990.99-0.140.950.790.890.950.980.990.080.941.00.951.00.540.950.951.00.960.950.91-0.981.00.95-0.480.14-0.10.590.560.850.920.97-0.10.98-0.43-0.280.97-0.5-0.50.930.980.970.90.89-0.340.230.690.880.430.90.890.960.870.990.950.940.970.960.980.990.950.990.97
0.980.990.99-0.140.940.790.920.970.970.990.020.961.00.971.00.490.970.970.990.980.970.93-0.980.990.97-0.470.15-0.060.610.590.840.910.98-0.130.97-0.39-0.310.98-0.46-0.490.920.990.980.880.87-0.330.190.720.850.40.890.850.950.871.00.970.960.990.980.970.970.970.990.97
0.60.480.51-0.160.670.480.220.30.610.560.770.310.540.320.540.490.320.320.580.350.40.18-0.430.490.28-0.11-0.37-0.410.14-0.020.610.540.420.10.61-0.66-0.020.36-0.72-0.130.570.390.430.670.64-0.170.310.10.630.320.610.740.540.40.480.290.280.410.340.610.650.330.550.44
0.920.970.95-0.150.860.740.971.00.910.94-0.11.00.951.00.950.970.321.00.931.00.970.97-0.940.961.0-0.420.20.090.670.670.770.860.96-0.170.9-0.26-0.330.98-0.32-0.430.870.990.960.780.79-0.260.110.780.760.310.820.720.910.870.981.01.00.990.990.910.890.990.940.95
0.920.970.95-0.150.860.740.971.00.910.94-0.11.00.951.00.950.970.321.00.931.00.970.97-0.940.961.0-0.420.20.090.670.670.770.860.96-0.170.9-0.26-0.330.98-0.32-0.430.870.990.960.780.79-0.260.110.780.760.310.820.720.910.870.981.01.00.990.990.910.890.990.940.95
0.990.980.98-0.140.960.810.860.930.980.990.110.921.00.931.00.990.580.930.930.950.940.88-0.980.990.93-0.50.11-0.160.550.520.860.910.97-0.110.98-0.46-0.290.96-0.54-0.520.920.970.970.920.9-0.370.230.660.890.460.90.910.950.850.990.930.920.960.940.980.990.930.990.96
0.940.980.96-0.140.870.740.971.00.920.95-0.091.00.961.00.960.980.351.01.00.950.970.97-0.950.971.0-0.420.20.070.660.660.780.870.97-0.160.92-0.27-0.320.99-0.34-0.430.880.990.960.80.8-0.250.130.790.770.310.840.740.910.880.981.01.00.990.990.920.911.00.950.96
0.930.960.95-0.170.880.740.960.970.920.94-0.030.960.950.970.950.970.40.970.970.940.970.93-0.940.950.96-0.430.170.010.710.70.780.860.95-0.160.91-0.34-0.330.96-0.39-0.450.870.960.950.820.81-0.290.160.780.790.350.830.80.910.850.970.960.960.970.970.920.910.960.940.94
0.870.940.92-0.090.790.660.960.980.860.89-0.280.970.910.970.910.930.180.970.970.880.970.93-0.920.920.98-0.40.350.150.660.690.710.810.93-0.190.85-0.16-0.320.96-0.23-0.410.820.940.920.710.7-0.220.110.830.680.230.770.650.840.830.940.980.980.960.960.850.830.980.890.93
-0.96-0.96-0.970.11-0.91-0.81-0.86-0.94-0.94-0.970.08-0.91-0.98-0.94-0.98-0.98-0.43-0.94-0.94-0.98-0.95-0.94-0.92-0.98-0.940.5-0.230.08-0.58-0.57-0.86-0.92-0.980.09-0.960.430.25-0.970.50.51-0.92-0.97-0.97-0.91-0.890.34-0.2-0.72-0.88-0.43-0.9-0.88-0.95-0.84-0.97-0.94-0.93-0.95-0.95-0.95-0.96-0.94-0.97-0.95
0.980.980.99-0.080.930.780.890.960.960.980.030.941.00.961.00.990.490.960.960.990.970.950.92-0.980.95-0.510.2-0.090.590.580.840.910.97-0.10.97-0.39-0.280.98-0.46-0.530.910.980.960.880.87-0.350.260.70.860.440.890.870.940.850.990.950.950.970.950.960.970.960.980.98
0.910.970.95-0.150.840.730.971.00.90.93-0.160.990.951.00.950.970.281.01.00.931.00.960.98-0.940.95-0.430.240.10.670.680.760.860.96-0.160.89-0.25-0.310.98-0.31-0.440.870.990.960.770.78-0.250.120.790.760.310.820.710.90.870.971.01.00.980.990.90.880.990.930.95
-0.46-0.44-0.47-0.21-0.41-0.36-0.35-0.44-0.43-0.45-0.09-0.4-0.48-0.42-0.48-0.47-0.11-0.42-0.42-0.5-0.42-0.43-0.40.5-0.51-0.43-0.270.58-0.03-0.23-0.12-0.2-0.460.34-0.46-0.040.59-0.5-0.041.0-0.24-0.46-0.44-0.39-0.30.91-0.4-0.12-0.36-0.77-0.19-0.49-0.35-0.26-0.47-0.42-0.42-0.42-0.41-0.44-0.49-0.41-0.47-0.48
0.060.090.110.2-0.13-0.20.190.22-0.040.04-0.460.190.140.20.140.15-0.370.20.20.110.20.170.35-0.230.20.24-0.270.40.30.530.050.130.140.360.00.30.180.240.3-0.270.090.190.1-0.090.00.080.490.360.0-0.130.080.040.060.290.130.230.230.160.16-0.030.050.220.070.18
-0.18-0.08-0.12-0.14-0.29-0.260.170.08-0.22-0.16-0.420.11-0.10.09-0.1-0.06-0.410.090.09-0.160.070.010.150.08-0.090.10.580.40.480.410.10.12-0.070.49-0.230.20.55-0.010.170.580.080.02-0.08-0.3-0.070.79-0.040.42-0.13-0.610.07-0.350.00.25-0.060.10.10.020.04-0.22-0.230.09-0.16-0.07
0.530.590.56-0.230.440.30.730.660.50.54-0.110.670.590.670.590.610.140.670.670.550.660.710.66-0.580.590.67-0.030.30.480.630.620.660.580.160.49-0.050.040.61-0.19-0.070.610.640.570.40.50.140.160.70.47-0.020.570.430.630.740.610.670.660.630.640.50.510.650.530.57
0.470.550.53-0.080.330.180.740.670.420.48-0.210.680.560.670.560.59-0.020.670.670.520.660.70.69-0.570.580.68-0.230.530.410.630.350.480.550.180.42-0.02-0.050.630.08-0.220.470.640.530.290.370.070.210.660.34-0.070.440.370.480.660.580.680.680.610.620.420.460.650.490.58
0.860.820.83-0.220.840.780.680.750.850.860.10.740.860.770.850.840.610.770.770.860.780.780.71-0.860.840.76-0.120.050.10.620.350.980.830.210.86-0.670.150.78-0.8-0.150.960.820.830.880.96-0.010.230.670.940.310.980.840.940.80.830.760.730.810.780.850.870.770.850.79
0.910.890.9-0.20.870.790.780.850.890.910.030.830.920.860.920.910.540.860.860.910.870.860.81-0.920.910.86-0.20.130.120.660.480.980.90.160.9-0.60.070.87-0.7-0.220.980.90.90.890.96-0.050.240.730.940.310.990.850.970.860.90.850.830.890.860.90.910.860.90.87
0.960.980.96-0.230.920.820.910.960.950.97-0.050.950.970.960.970.980.420.960.960.970.970.950.93-0.980.970.96-0.460.14-0.07