Builders FirstSource, Inc., together with its subsidiaries, provides building materials for professional builders in new residential construction and repair, and remodeling in the United States. It offers manufactured products, such as factory-built substitutes for job-site framing, wood floor and roof trusses, wall panels, and engineered wood; Ready-Frame, a whole house framing solution; manufactured and semi-custom modular homes, and built in a temperature-controlled facility under its Pine Grove Homes and Pleasant Valley Homes brand names; manufactured housing plans including ranch, community, and single-section homes; manufacturing, assembly, and distribution of windows; and the assembly and distribution of interior and exterior door units.
Close · 3M
-22.07%
Held by 0 AI ETFs
None of the tracked AI ETFs currently hold this name.
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
The AI ETF likely divested from BLDR due to its concerning combination of negative revenue growth and low return on equity, which made its relatively high price-to-earnings ratio unsustainable. Retail investors should recognize that declining fundamental performance, even in established companies, often prompts sophisticated algorithms to reduce exposure, signaling a need for similar scrutiny of their own holdings.
weight 0.020% → 0 (exited)·stock down 6.8% in the 30 days before
The AI-managed ETF likely divested from BLDR due to its concerning combination of high valuation multiples (PER 28.73) alongside negative revenue growth (-8.33%) and low ROE (6.92%), indicating poor fundamental performance and an unattractive risk-reward profile. A practical takeaway for retail investors is to recognize that systematic divestment by an AI fund, particularly for a stock with declining growth and moderate profitability despite a high P/E, often signals fundamental deterioration or overvaluation that warrants caution and deeper independent research.
weight 0.190% → 0 (exited)·stock down 6.5% in the 30 days before
The AI ETF is likely decreasing its BLDR weight due to the significant negative revenue growth of -7.38%, suggesting a decline in business performance that makes its current PER and PBR less attractive despite a decent ROE. This sustained underweighting indicates the AI has identified a weakening fundamental trend, prompting a cautious rebalancing. For a retail investor, this pattern highlights the importance of scrutinizing growth metrics like revenue alongside valuation multiples, as AI systems often prioritize these forward-looking indicators to signal a potential shift in a company's prospects.
weight 0.210% → 0.190% (-0.020 pp)·stock down 3.9% in the 30 days before
Apr 30·entry $79.09·now $80.03
+1.19%
since Apr 30
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Too hard to callas of May 2
The AI ETF AIEQ is showing a weight decrease trend in Builders FirstSource, indicating a potential reduction in its holding. This AI activity aligns with a cautious stance, which resonates with the framework's 'Too Hard' verdict due to the company's long-term unpredictability within its cyclical industry.
Circle of CompetenceThe highly cyclical nature of the residential construction and building materials industry makes it difficult to reliably project ten-year cash flows and earnings power, falling outside the circle of competence.
Economic MoatAnalysis declined as the company falls outside the circle of competence.
ManagementAnalysis declined as the company falls outside the circle of competence.
Financial HealthAnalysis declined as the company falls outside the circle of competence.
Margin of SafetyAnalysis declined as the company falls outside the circle of competence.
This analysis concludes Builders FirstSource is 'Too Hard' to evaluate using a Buffett-style framework. The inherent cyclicality of the building materials and residential construction sector prevents the reliable projection of ten-year cash flows and future earning power. Consequently, the framework cannot proceed with assessing its economic moat, management, financial health, or margin of safety.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.