Business Analysis of Builders FirstSource

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Builders FirstSource

BUILDERS FIRSTSOURCE

Business Overview

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional contractors, sub-contractors, and consumers in the United States. Its products include lumber and lumber sheet goods comprising dimensional lumber, plywood, and OSB products that are used in on-site house framing; and windows, and interior and exterior door units, as well as interior trims and custom products under the Synboard brand. The company's manufactured products consist of wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood; gypsum, roofing and insulation products, including wallboards, ceilings, joint treatment, and finishes, as well as vinyl, composite, and wood sidings; and exterior trims, other exteriors, metal studs, and cement. In addition, it offers other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. Further, the company supplies professional grade building products, such as lumber and lumber sheet goods, and various windows, doors, and millwork lines. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

Builders FirstSource

Builders FirstSource


R&P Rank: 427
Sector: Construction and Building Products
Industry:Building Materials & Fixtures
H.Q Location:Texas
Website: www.bldr.com
Company Address:
2001 BRYAN STREET, SUITE 1600, DALLAS TX 75201
Ph:214-880-3500

Business Analysis of Builders FirstSource

The Construction and Building Products Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Builders FirstSource compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Builders FirstSource to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Builders FirstSource with an interactive chart.

  1. Revenue Growth: Builders FirstSource reported a revenue growth of 78.6% year-on-year during 2016. Building Materials & Fixtures Industry grew at 10.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Builders FirstSource spent 74.9% of its total revenues on COGS. Building Materials & Fixtures industry average (COGS share of revenue) in the same period was 72.8%
  3. R&D share of Revenues: Builders FirstSource R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Builders FirstSource spent 21.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Building Materials & Fixtures industry average SG&A spending in the same period was 16.5%
  5. Inventory share of Revenues: As a percentage of revenue, Builders FirstSource spent 8.5% of its total revenues on Inventories. Building Materials & Fixtures industry average Inventory spending in the same period was 11.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Builders FirstSource invested 6.4% of its total revenues on Accounts Payable (A/P) Building Materials & Fixtures industry average Accounts Payable investment in the same period was 7.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Builders FirstSource invested 9.8% of its total revenues on Accounts Receivable (A/R). Building Materials & Fixtures industry average Accounts Receivable investment in the same period was 11.6%
  8. PP&E share of Revenues: As a percentage of revenue, Builders FirstSource invested 10.3% of its total revenues on Property, Plants, and Equipments (PP&E). Building Materials & Fixtures industry average PPE investment in the same period was 26.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Builders FirstSource invested 14.1% of its total revenues on Intangibles. Building Materials & Fixtures industry average Intangibles investment in the same period was 27.0%
  10. Net Margins: Builders FirstSource Net Margins in the year 2016 were 2.3%. Building Materials & Fixtures industry average Net Margins in the same period were 6.8%

Sector and Industry Association of Builders FirstSource

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Builders FirstSource is associated with Industrials Sector Group, Construction and Building Products Sector, and Building Materials & Fixtures Industry.

Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:

  • Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
  • Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.

Industry Ranking of Builders FirstSource

With $6.4 billion revenues, Builders FirstSource ranked number 3 of all the companies in the US Building Materials & Fixtures industry. There were a total of 60 public companies in the US Building Materials & Fixtures industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Building Materials & Fixtures industry by revenues during 2016 were:

  1. Masco ($7.4 billion)
  2. HD Supply Holdings ($7.1 billion)
  3. Builders FirstSource ($6.4 billion)
  4. Owens Corning ($5.7 billion)
  5. Fortune Brands Home & Security ($5 billion)
  6. Watsco ($4.2 billion)
  7. Beacon Roofing Supply ($4.1 billion)
  8. Fastenal ($4 billion)
  9. Boise Cascade ($3.9 billion)
  10. Martin Marietta Materials ($3.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Builders FirstSourceand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of builders-firstsource

Masco (MAS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Masco Corp with $7 billion revenues in the year 2016 was the number 1 Building Materials & Fixtures company. Read this report to know the top competitors of Masco and identify growth and cost optimization opportunities of Masco

HD Supply Holdings (HDS) Business Analysis – Analyze Historical Performance, Strategic...

HD Supply Holdings, Inc. with $7 billion revenues in the year 2016 was the number 2 Building Materials & Fixtures company. Read this report to know the top competitors of HD Supply Holdings and identify growth and cost optimization opportunities of HD Supply Holdings

Owens Corning (OC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Owens Corning with $6 billion revenues in the year 2016 was the number 4 Building Materials & Fixtures company. Read this report to know the top competitors of Owens Corning and identify growth and cost optimization opportunities of Owens Corning

Fortune Brands Home & Security (FBHS) Business Analysis – Analyze Historical...

Fortune Brands Home & Security, Inc. with $5 billion revenues in the year 2016 was the number 5 Building Materials & Fixtures company. Read this report to know the top competitors of Fortune Brands Home & Security and identify growth and cost optimization opportunities of Fortune Brands Home & Security

Watsco (WSO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Watsco Inc with $4 billion revenues in the year 2016 was the number 6 Building Materials & Fixtures company. Read this report to know the top competitors of Watsco and identify growth and cost optimization opportunities of Watsco

Beacon Roofing Supply (BECN) Business Analysis – Analyze Historical Performance, Strategic...

Beacon Roofing Supply Inc with $4 billion revenues in the year 2016 was the number 7 Building Materials & Fixtures company. Read this report to know the top competitors of Beacon Roofing Supply and identify growth and cost optimization opportunities of Beacon Roofing Supply

Revenues Analysis

Builders FirstSource (BLDR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Builders FirstSource, Inc. (BLDR) from 2012 to 2016. Builders FirstSource generated a total of $6.4 billion revenues during 2016. Builders FirstSource reported a revenue growth of 78.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Builders FirstSource (BLDR) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Builders FirstSource, Inc. (BLDR) from 2002 to 2016. Builders FirstSource generated a total of $6.4 billion revenues during 2016. Builders FirstSource reported a revenue growth of 78.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Builders FirstSource (BLDR) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Builders FirstSource, Inc. (BLDR) revenue growth with Building Materials & Fixtures industry growth during the last five years from 2012 to 2016. Builders FirstSource reported a revenue growth of 78.6% year-over-year during 2016. The Building Materials & Fixtures industry growth was 10.7% year-over-year during 2016. Builders FirstSource growth was faster than the industry during 2016.

Profit Analysis