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Stock Analysis on Net

Builders FirstSource Inc. (NYSE:BLDR)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Common-Size Income Statement
Quarterly Data

Builders FirstSource Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -65.13 -64.78 -64.68 -65.92 -65.03 -65.17 -67.75 -67.94 -68.91 -71.61 -74.37 -73.56 -75.14 -73.41 -73.96 -72.98 -72.68 -72.85 -72.91 -72.86 -75.32 -76.25 -75.83
Gross margin 34.87% 35.22% 35.32% 34.08% 34.97% 34.83% 32.25% 32.06% 31.09% 28.39% 25.63% 26.44% 24.86% 26.59% 26.04% 27.02% 27.32% 27.15% 27.09% 27.14% 24.68% 23.75% 24.17%
Selling, general and administrative expenses -20.72 -22.48 -23.28 -22.01 -17.36 -15.11 -17.05 -18.64 -15.88 -16.19 -19.68 -17.99 -18.77 -19.95 -22.63 -22.76 -20.77 -21.08 -22.69 -22.15 -18.93 -18.75 -21.11
Income from operations 14.15% 12.74% 12.03% 12.07% 17.61% 19.72% 15.20% 13.42% 15.20% 12.20% 5.94% 8.45% 6.09% 6.64% 3.41% 4.26% 6.54% 6.07% 4.41% 4.98% 5.75% 5.00% 3.07%
Interest expense, net -1.11 -1.17 -1.08 -0.97 -0.77 -1.02 -0.73 -0.87 -0.65 -0.50 -0.76 -1.14 -1.22 -1.38 -2.91 -1.56 -1.40 -1.54 -1.53 -1.29 -1.37 -1.39 -1.57
Income before income taxes 13.04% 11.57% 10.95% 11.10% 16.84% 18.70% 14.48% 12.55% 14.55% 11.70% 5.18% 7.31% 4.87% 5.27% 0.50% 2.70% 5.14% 4.53% 2.88% 3.69% 4.37% 3.62% 1.49%
Income tax expense -3.09 -2.64 -2.35 -2.28 -4.03 -4.45 -3.22 -3.00 -3.42 -2.78 -1.04 -1.78 -1.12 -1.21 -0.01 -0.36 -1.20 -1.03 -0.69 -0.83 -0.91 -0.91 -0.13
Net income 9.96% 8.93% 8.60% 8.82% 12.81% 14.25% 11.26% 9.55% 11.13% 8.92% 4.13% 5.53% 3.74% 4.06% 0.49% 2.35% 3.94% 3.50% 2.19% 2.86% 3.46% 2.71% 1.37%

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The financial trajectory from March 2018 through September 2023 is characterized by a significant expansion in profitability margins, driven primarily by a substantial reduction in the cost of sales relative to net revenue.

Gross Margin Expansion
Gross margins exhibited a consistent upward trend, rising from 24.17% in early 2018 to a peak of 35.32% by March 2023. A pivotal shift occurred between March 2021 and June 2022, during which the cost of sales dropped from 74.37% to 65.17% of net sales. This structural improvement in gross profitability indicates enhanced pricing power or improved procurement efficiencies over the observed period.
Operational Efficiency and Operating Income
Income from operations showed marked growth, evolving from a range of 3.07% to 6.54% in 2018-2019 to a peak of 19.72% in June 2022. While selling, general, and administrative (SG&A) expenses fluctuated—reaching a low of 15.11% in June 2022 before increasing to 23.28% by March 2023—the overall expansion in gross margin more than offset these costs, resulting in a higher sustained operating margin in the later years compared to the baseline period.
Net Profitability and Financial Costs
Net income as a percentage of net sales transitioned from low single digits (averaging approximately 1% to 4% between 2018 and 2020) to a more robust range of 8% to 14% starting in 2021. Interest expenses remained relatively stable, generally fluctuating between 0.50% and 1.57%, with a temporary spike to 2.91% in March 2020. The bottom-line growth was further influenced by increasing income tax expenses, which rose from under 1% of sales in early 2018 to approximately 3% by September 2023, reflecting the higher taxable income generated by improved margins.

In summary, the period analyzed shows a fundamental shift in the company's cost structure. The substantial increase in gross margin served as the primary catalyst for the expansion of both operating and net profit margins, despite intermittent increases in SG&A expenses toward the end of the period.

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