CluenexBuilders FirstSource BLDR
Builders FirstSource scores weak on business quality (2.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Builders FirstSource does
Builders FirstSource supplies manufactured building materials, prefabricated components, and services to professional homebuilders across the United States. Revenue shrinks as housing demand cools, pushing the company to rely on operating efficiencies and digital tools to protect margins.
- What it does best
Builders FirstSource dominates pre-fabricated component supply at scale, turning out roof trusses and wall panels that speed up job sites. With revenue of $14.4B, its distribution network dwarfs most regional competitors, locking in professional builders who cannot risk job-site delays.
- The main risk
Interest coverage sits at a fragile 1.5x, leaving earnings dangerously exposed to any further downturn in residential construction volume or sticky debt servicing costs.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins have compressed to 3.0% alongside a razor-thin net margin of 0.7%, showing that profitability struggles significantly as revenue scales downward.
A middle-of-the-pack moat is anchored by scale in distribution, placing it in the 27th percentile for gross margin at 29.2% but keeping regional rivals at bay through entrenched builder relationships.
Revenue contraction of 7.4% highlights a fading top-line engine, dropping from $17.1B in 2023 down to $14.4B as housing activity cools.
Debt-to-equity of 1.0x and interest coverage at 1.5x create a heavy burden, though $639M in free cash flow provides a buffer while the balance sheet softens.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on BLDR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Builders FirstSource scores weak on the Cluenex quality check (2.6 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026.
See BLDR today
- Today's verdict on BLDR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Builders FirstSource (BLDR)”, https://cluenex.com/stocks/bldr/, data as of Oct 10, 2026.