BLDRNEUTRAL

Return on Equity (ROE)

7.0%

Higher than 33% of Industrials sector peers

Updated 80h ago

Sector Performance

33th percentile

BLDR

7.0%

Sector Median

12.6%

Sector Avg

-23.5%

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Deep Analysis

Builders FirstSource's current Return on Equity (ROE) of 7.0% means that for every dollar of shareholders' equity, the company generated $0.07 in net income over the past year — a measure of how efficiently it uses investor capital to produce profit.

This figure sits well below the sector median of 12.6%, placing the company in the 33rd percentile among its Industrials peers, indicating weaker profitability relative to the majority of competitors. Trend data are not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and the only historical value provided is the current 7.0%, so there is no observable direction. Without a trend, the combination of a low ROE level and no improvement signal that the company's equity efficiency is a risk factor compared to the sector, though the absence of deterioration prevents a strongly bearish reading. This metric supports the overall NEUTRAL verdict — the below-median ROE justifies caution, but the lack of negative momentum keeps the stock from being outright unfavorable.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BLDR?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BLDR's Return on Equity (ROE) compare to its sector?

BLDR's Return on Equity (ROE) of 7.0% compares to a Industrials sector median of 12.6%, placing it in the 33th percentile.

Who are BLDR's closest peers by Return on Equity (ROE)?

The closest Industrials peers by Return on Equity (ROE) include: PWR (13.5%), RTX (11.6%), AME (13.9%), SAIA (10.2%), CARR (9.9%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.