Price to Earnings (P/E)
since 2005
Calculation
Builders FirstSource Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2023 | 4.26 | = | 84.78 | ÷ | 19.92 | 19.92 | = | 2,749,369 | ÷ | 138,012,302 | |
| Mar 1, 2022 | 7.48 | = | 73.05 | ÷ | 9.76 | 9.76 | = | 1,725,416 | ÷ | 176,772,541 | |
| Feb 26, 2021 | 28.49 | = | 43.27 | ÷ | 1.52 | 1.52 | = | 313,537 | ÷ | 206,431,681 | |
| Feb 21, 2020 | 13.97 | = | 26.69 | ÷ | 1.91 | 1.91 | = | 221,809 | ÷ | 116,130,284 | |
| Mar 1, 2019 | 7.89 | = | 14.03 | ÷ | 1.78 | 1.78 | = | 205,191 | ÷ | 115,359,616 | |
| Mar 1, 2018 | 62.36 | = | 21.19 | ÷ | 0.34 | 0.34 | = | 38,781 | ÷ | 114,120,308 | |
| Mar 1, 2017 | 11.29 | = | 14.54 | ÷ | 1.29 | 1.29 | = | 144,341 | ÷ | 112,040,464 | |
| Mar 11, 2016 | — | = | 9.69 | ÷ | -0.21 | -0.21 | = | -22,831 | ÷ | 110,073,332 | |
| Mar 3, 2015 | 32.58 | = | 6.02 | ÷ | 0.18 | 0.18 | = | 18,150 | ÷ | 98,225,978 | |
| Feb 28, 2014 | — | = | 8.61 | ÷ | -0.44 | -0.44 | = | -42,691 | ÷ | 97,950,006 | |
| Mar 1, 2013 | — | = | 6.04 | ÷ | -0.59 | -0.59 | = | -56,856 | ÷ | 96,876,244 | |
| Mar 2, 2012 | — | = | 3.09 | ÷ | -0.67 | -0.67 | = | -64,995 | ÷ | 96,612,914 | |
| Mar 3, 2011 | — | = | 2.45 | ÷ | -0.99 | -0.99 | = | -95,508 | ÷ | 96,768,427 | |
| Mar 4, 2010 | — | = | 3.04 | ÷ | -0.64 | -0.64 | = | -61,854 | ÷ | 96,708,529 | |
| Mar 2, 2009 | — | = | 1.51 | ÷ | -3.86 | -3.86 | = | -139,494 | ÷ | 36,106,079 | |
| Mar 5, 2008 | — | = | 6.63 | ÷ | -0.66 | -0.66 | = | -23,752 | ÷ | 36,030,411 | |
| Mar 12, 2007 | 8.81 | = | 17.15 | ÷ | 1.95 | 1.95 | = | 68,893 | ÷ | 35,370,923 | |
| Mar 13, 2006 | 15.42 | = | 22.43 | ÷ | 1.46 | 1.46 | = | 48,628 | ÷ | 33,421,304 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Builders FirstSource Inc. Annual Report.
The financial trajectory from 2006 to 2023 is characterized by a severe contraction period followed by a significant recovery and subsequent expansion in earnings. A sharp decline in share price is observed between 2006 and 2009, coinciding with a shift from positive to deeply negative earnings per share (EPS). Share prices reached a nadir of 1.51 USD in 2009, while EPS plummeted to -3.86 USD in the same period.
- Earnings Stability and P/E Applicability
- A prolonged period of negative earnings occurred between 2008 and 2014, during which the price-to-earnings (P/E) ratio remained unavailable. This indicates a sustained phase of net losses where traditional valuation multiples based on earnings were not applicable. Profitability returned intermittently starting in 2015, with a brief reversal in 2016, before establishing a consistent upward trend in EPS from 2017 onward.
- P/E Ratio Volatility
- Following the return to profitability, the P/E ratio exhibited extreme fluctuations. A significant spike to 62.36 was recorded in 2018, suggesting a period where the share price increased substantially faster than the underlying earnings. This was followed by a sharp correction to 7.89 in 2019, reflecting a realignment of market valuation with actual earnings performance.
- Valuation Compression Amidst Growth
- Between 2021 and 2023, a distinct pattern of valuation compression is evident. Although the share price rose aggressively from 43.27 USD to 84.78 USD, the P/E ratio declined from 28.49 to 4.26. This inverse relationship demonstrates that the growth in earnings per share—which surged from 1.52 USD to 19.92 USD—far outpaced the increase in the market price, resulting in a significantly lower valuation multiple despite the higher stock price.
Overall, the data reveals a transition from a high-risk, loss-making entity to a highly profitable organization where recent valuation is driven more by fundamental earnings growth than by speculative price appreciation.
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Comparison to Competitors
Builders FirstSource Inc., P/E, long-term trends, comparison to competitors
| Builders FirstSource Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 28, 2023 | 4.26 | — | 19.15 | 27.93 | — | 26.97 | 20.48 | 27.59 |
| Mar 1, 2022 | 7.48 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 26, 2021 | 28.49 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Feb 21, 2020 | 13.97 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Mar 1, 2019 | 7.89 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Mar 1, 2018 | 62.36 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Mar 1, 2017 | 11.29 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Mar 11, 2016 | — | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Mar 3, 2015 | 32.58 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 28, 2014 | — | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Mar 1, 2013 | — | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Mar 2, 2012 | — | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Mar 3, 2011 | — | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Mar 4, 2010 | — | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Mar 2, 2009 | — | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Mar 5, 2008 | — | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Mar 12, 2007 | 8.81 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Mar 13, 2006 | 15.42 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Builders FirstSource Inc., P/E, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Feb 28, 2023 | 4.26 | 40.21 |
| Mar 1, 2022 | 7.48 | 57.31 |
| Feb 26, 2021 | 28.49 | 123.55 |
| Feb 21, 2020 | 13.97 | 39.03 |
| Mar 1, 2019 | 7.89 | 56.00 |
| Mar 1, 2018 | 62.36 | 55.16 |
| Mar 1, 2017 | 11.29 | 23.62 |
| Mar 11, 2016 | — | 33.10 |
| Mar 3, 2015 | 32.58 | 17.47 |
| Feb 28, 2014 | — | 18.85 |
| Mar 1, 2013 | — | 15.74 |
| Mar 2, 2012 | — | 15.20 |
| Mar 3, 2011 | — | 18.46 |
| Mar 4, 2010 | — | 17.22 |
| Mar 2, 2009 | — | 7.48 |
| Mar 5, 2008 | — | 15.28 |
| Mar 12, 2007 | 8.81 | 17.63 |
| Mar 13, 2006 | 15.42 | 20.11 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Builders FirstSource Inc., P/E, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Feb 28, 2023 | 4.26 | 36.06 |
| Mar 1, 2022 | 7.48 | 35.59 |
| Feb 26, 2021 | 28.49 | — |
| Feb 21, 2020 | 13.97 | 43.95 |
| Mar 1, 2019 | 7.89 | 33.70 |
| Mar 1, 2018 | 62.36 | 29.83 |
| Mar 1, 2017 | 11.29 | 22.92 |
| Mar 11, 2016 | — | 22.89 |
| Mar 3, 2015 | 32.58 | 18.79 |
| Feb 28, 2014 | — | 19.13 |
| Mar 1, 2013 | — | 17.77 |
| Mar 2, 2012 | — | 15.75 |
| Mar 3, 2011 | — | 18.72 |
| Mar 4, 2010 | — | 19.17 |
| Mar 2, 2009 | — | 9.73 |
| Mar 5, 2008 | — | 16.93 |
| Mar 12, 2007 | 8.81 | 11.65 |
| Mar 13, 2006 | 15.42 | 50.62 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).