BLDR · BUILDERS FIRSTSOURCE

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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

-46.54%

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.

Buy signals3

Win rate0% (0/3)

Avg buy return-12.12%

AIEQno longer held11 signals

AIEQ · Exit · 1d

weight 2.280% → 0 (exited)·stock down 13.4% in the 30 days before

Sep 1·entry $62.79·now $64.18

+2.21%

since Sep 1

AIEQ · Weight decrease · 3d

weight 2.370% → 2.260% (-0.110 pp)·stock up 2.6% in the 30 days before

Aug 28·entry $67.72·now $64.18

-5.23%

since Aug 28

AIEQ · Weight decrease · 2d

weight 2.370% → 2.310% (-0.060 pp)·stock down 0.8% in the 30 days before

Aug 27·entry $67.21·now $64.18

-4.51%

since Aug 27

AIEQ · Weight decrease · 2d

weight 2.450% → 2.370% (-0.080 pp)·stock down 5.8% in the 30 days before

Aug 23·entry $70.22·now $64.18

-8.60%

since Aug 23

AIEQ · Weight decrease · 2d

weight 2.400% → 2.280% (-0.120 pp)·stock down 4.2% in the 30 days before

Aug 19·entry $72.55·now $64.18

-11.54%

since Aug 19

AIEQ · Weight decrease · 2d

weight 2.510% → 2.400% (-0.110 pp)·stock down 17.7% in the 30 days before

Aug 15·entry $70.21·now $64.18

-8.59%

since Aug 15

AIEQ · Weight increase · 3d

weight 2.250% → 2.520% (+0.270 pp)·stock down 16.8% in the 30 days before

Aug 8·entry $71.98·now $64.18Fresh

-10.84%

since Aug 8

AIEQ · Weight increase · 2d

weight 2.250% → 2.460% (+0.210 pp)·stock down 16.8% in the 30 days before

Aug 7·entry $74.69·now $64.18Fresh

-14.07%

since Aug 7

AIEQ · New entry · 1d

weight 0 → 2.250% (new)·stock down 24.3% in the 30 days before

Aug 2·entry $72.48·now $64.18Fresh

-11.45%

since Aug 2

AIEQ · Exit · 1d

weight 0.190% → 0 (exited)·stock down 6.5% in the 30 days before

May 3·entry $73.75·now $64.18

-12.98%

since May 3

AIEQ · Weight decrease · 2d

weight 0.210% → 0.190% (-0.020 pp)·stock down 3.9% in the 30 days before

Apr 30·entry $79.09·now $64.18

-18.85%

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

Fails the frameworkas of Aug 9

AI ETF AIEQ has recently entered and is showing an increasing weight trend in Builders FirstSource, indicating a bullish sentiment. This activity stands in stark contrast to a Buffett-style analysis, which concludes a 'Fail' due to concerns over the company's economic moat, very weak financial health, and expensive valuation.

Circle of CompetenceThe business of supplying building materials and services to the construction industry is understandable, despite its cyclical nature, allowing for reasonable, albeit broad, projections of long-term earning power.
Economic MoatA clear and durable competitive advantage such as strong brand power, high switching costs, or an unassailable scale-driven cost advantage is not evident from the provided information for this building materials supplier.
ManagementThere is insufficient information provided to assess management's candor, capital allocation discipline, or ownership incentives.
Financial HealthThe reported Return on Equity (ROE) of 2.46% is significantly below the required 15% average and 10% minimum threshold, indicating poor financial performance.
Margin of SafetyWith a P/E ratio of 78.37 and an EV/EBITDA of 19.65, especially considering the low Return on Equity and negative revenue growth, the current market price does not offer a defensible margin of safety relative to a conservative estimate of intrinsic value.

While the core business of Builders FirstSource is within the circle of competence, a clear and durable economic moat is not apparent. The company's financial health is notably poor with a very low Return on Equity, and its valuation metrics appear stretched, offering no margin of safety. Consequently, the company fails to meet the criteria for a sound value investment.

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.