BLDRNEUTRAL

BLDR FCF Yield Analysis

11.3%

Higher than 100% of Industrials sector peers

Updated 273h ago·SEC filings & market data

Key Takeaway

The current FCF Yield of 11.3% means that for every $100 of the company’s market value, it generates $11.30 in free cash flow — the cash left after operating expenses and capital investments.

Sector Performance

100th percentile

BLDR

11.3%

Sector Median

1.6%

Sector Avg

-36.5%

Prior Period

10.5%(Aug 2026)

↑ Improving

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Deep Analysis

The current FCF Yield of 11.3% means that for every $100 of the company’s market value, it generates $11.30 in free cash flow — the cash left after operating expenses and capital investments.

That places Builders FirstSource at the 100th percentile among Industrials peers, far above the sector median of 1.6%. The trend is increasing: year-over-year change is not available, but quarter-over-quarter the metric rose by 7.6%, with recent readings of 11.3%, 10.5%, and 10.6% (most recent first). A high and rising FCF yield suggests the company is increasingly converting its valuation into actual cash, which can reduce downside risk and support shareholder returns. However, the level is so far above peers that it may already reflect a low market valuation or temporary cash flow spike. This metric supports the overall NEUTRAL verdict because the strong cash generation is a positive, but the lack of YoY data and extreme peer divergence leave room for caution.

Frequently Asked Questions

What does the FCF Yield tell investors about BLDR?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does BLDR's FCF Yield compare to its sector?

BLDR's FCF Yield of 11.3% compares to a Industrials sector median of 1.6%, placing it in the 100th percentile.

Who are BLDR's closest peers by FCF Yield?

The closest Industrials peers by FCF Yield include: PWR (1.7%), MMM (1.5%), AXON (0.2%), BE (0.1%), LILM (0.0%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.