BLDR: We Keep On Waiting (Waiting), Waiting on the World to Change. Initiate Peer Perform

Research evidence excerpt

BLDR: We Keep On Waiting (Waiting), Waiting on the World to Change. Initiate Peer Perform

t time competing with large

professional builders in new residential construction and repair production builders, BLDR’s tools create a more even playing field.

and remodeling. The company’s product categories include

lumber/OSB, windows/doors, roofing, insulation and other PP Rating: BLDR trades at 9.9X our 2026 EBITDA estimate, a premium to the

building material products as well as Digital solutions and company's 7.2X five-year average while BLDR's multiple relative to distributor

Installation capabilities. We estimate BLDR has more than 2X the peers suggest the equity is fairly valued. We believe an inflection in the New

market share of its nearest lumber-oriented competitor and is Res cycle will be the catalyst to drive equity upside from current levels.

likely 3X to 4X the size of its closest peer on truss capacity.

Positives Negatives

1. Increased value-add structurally raises Gross Margins and 1. Housing demand remains weak, which continues putting pressure on

warrants an improved valution over time. volumes, pricing, and content per start, weighing on margins and cash flow

2. BLDR's Digital capabilities are unique in the industry and create generation.

an opportunity for share gains moving forward, evening the playing 2. The M&A market has become more competitive with QXO and SRS entering

field for smaller homebuilders. the lumber space while lower FCF generation in a weaker market environment

3. A New Res cycle or lumber price inflection creates the reduces deployable capital.

opportunity for material upside from current levels. 3. Affordability challenges could continue weighing on content per start and

4.