Stock fact sheet · data as of
Builders FirstSource, Inc. (BLDR): fair value, margin of safety and Wheel Score
Basic Materials · Construction Materials · United States · Blend
Is BLDR undervalued?
At 53.68 (close of 16 Oct 2026), BLDR trades within a few percent of the GLS average fair value of 54.24 (1.0% below fair value). 8 models produced a value and they split 3 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
The 8 models disagree widely: GLS Growth gives 2.76 while 10 Cap gives 140.26. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files BLDR under Blend.
Nine valuation models for BLDR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 129.71 | +142% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 27.97 | -48% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 53.97 | +1% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 23.59 | -56% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.76 | -95% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 140.26 | +161% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 45.21 | -16% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 10.48 | -80% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -36.79 | -169% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 79.71 | +48% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - BLDR passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 4.4%, ROE 10.0%, ROA 3.9% - with debt at 1.30 times equity and a free-cash-flow yield of 11.1%.
Builders FirstSource, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Lumber And Lumber Sheet Goods 27%, Specialty Building Products And Services 27%, Windows Doors And Millwork 25% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 9/10 and Congressional trading 4/10 on the GLS smart-money scales; the last recorded Congressional buy was on 11 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | 4.4% |
|---|---|---|---|
| GLS Moat | 2.8 / 10 | ROE | 10.0% |
| Debt / equity | 1.30 | ROA | 3.9% |
| Free-cash-flow yield | 11.1% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 9 · 4 / 10 |
Wheel Score 68: Good
BLDR scores 68 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 13/25), Piotroski health (13/20), the GLS moat (4/15), the option premium on offer (19/20) and how easily the stock trades (18/20). Moat (4/15) is the part holding the score back.
Implied volatility is 63% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is 49,762 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 4.7M shares a day on a market cap of $5.8B, with a beta of 1.45 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 13 / 25 | 1% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 19 / 20 | implied volatility 63% | |
| Stability | 18 / 20 | 4.7M shares/day, $5.8B cap, beta 1.45 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Builders FirstSource, Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Construction Materials
The 12 companies below are the closest to Builders FirstSource, Inc. by market cap within the Construction Materials industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| EXP Eagle Materials Inc. | 170.58 | 190.85 | +11% | 76Good | $5.2B |
| FBIN Fortune Brands Innovations, Inc. | 39.96 | 30.61 | -31% | 60Fair | $4.8B |
| SSD Simpson Manufacturing Co., Inc. | 171.08 | 136.82 | -25% | 64Fair | $7.0B |
| AWI Armstrong World Industries, Inc. | 166.59 | 158.94 | -5% | 72Good | $7.0B |
| ACA Arcosa, Inc. | 147.01 | 99.18 | -48% | 47Weak | $7.2B |
| TREX Trex Company, Inc. | 44.37 | 39.48 | -12% | 67Good | $4.5B |
| GFF Griffon Corporation | 93.21 | 103.26 | +10% | 71Good | $4.3B |
| SPXC SPX Technologies, Inc. | 168.23 | 150.84 | -12% | 64Fair | $8.4B |
| OC Owens Corning | 113.69 | 149.84 | +24% | 45Weak | $9.0B |
| WMS Advanced Drainage Systems, Inc. | 125.19 | 121.88 | -3% | 72Good | $9.4B |
| USLM United States Lime & Minerals, Inc. | 104.88 | 100.85 | -4% | 68Good | $3.0B |
| KNF Knife River Corporation | 49.95 | 66.95 | +25% | 75Good | $2.8B |
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Start free See the Sunday ScanQuestions about BLDR
Is BLDR undervalued right now?
Not meaningfully: at 53.68 the stock trades within a few percent of the GLS average fair value of 54.24 (1.0% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of BLDR and what does it mean?
BLDR scores 68 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for BLDR?
54.24 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Builders FirstSource, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does BLDR have listed options, and how liquid are they?
Yes. The nightly snapshot found 652 listed contracts with 49,762 open interest across all expiries and implied volatility of 63% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.