Beacon Roofing Supply Stock Price To Earning
| BECN Stock | USD 99.97 4.07 4.24% |
Beacon Roofing Supply fundamentals help investors to digest information that contributes to Beacon Roofing's financial success or failures. It also enables traders to predict the movement of Beacon Stock. The fundamental analysis module provides a way to measure Beacon Roofing's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Beacon Roofing stock.
Beacon | Price To Earning |
Beacon Roofing Supply Company Price To Earning Analysis
Beacon Roofing's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Current Beacon Roofing Price To Earning | 23.23 X |
Most of Beacon Roofing's fundamental indicators, such as Price To Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Beacon Roofing Supply is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Beacon Price To Earning Driver Correlations
Understanding the fundamental principles of building solid financial models for Beacon Roofing is extremely important. It helps to project a fair market value of Beacon Stock properly, considering its historical fundamentals such as Price To Earning. Since Beacon Roofing's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Beacon Roofing's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Beacon Roofing's interrelated accounts and indicators.
Click cells to compare fundamentals
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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Beacon Retained Earnings
Retained Earnings |
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Based on the latest financial disclosure, Beacon Roofing Supply has a Price To Earning of 23.23 times. This is 17.38% higher than that of the Trading Companies & Distributors sector and significantly higher than that of the Industrials industry. The price to earning for all United States stocks is 19.12% higher than that of the company.
Beacon Price To Earning Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Beacon Roofing's direct or indirect competition against its Price To Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Beacon Roofing could also be used in its relative valuation, which is a method of valuing Beacon Roofing by comparing valuation metrics of similar companies.Beacon Roofing is currently under evaluation in price to earning category among related companies.
Beacon Roofing ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Beacon Roofing's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Beacon Roofing's managers, analysts, and investors.Environmental | Governance | Social |
Beacon Fundamentals
| Return On Equity | 0.2 | ||||
| Return On Asset | 0.0692 | ||||
| Profit Margin | 0.04 % | ||||
| Operating Margin | 0.04 % | ||||
| Current Valuation | 9.23 B | ||||
| Shares Outstanding | 63.6 M | ||||
| Shares Owned By Insiders | 0.62 % | ||||
| Shares Owned By Institutions | 95.72 % | ||||
| Number Of Shares Shorted | 1.03 M | ||||
| Price To Earning | 23.23 X | ||||
| Price To Book | 3.39 X | ||||
| Price To Sales | 0.68 X | ||||
| Revenue | 9.12 B | ||||
| Gross Profit | 2.24 B | ||||
| EBITDA | 895.8 M | ||||
| Net Income | 400.9 M | ||||
| Cash And Equivalents | 94.7 M | ||||
| Cash Per Share | 1.46 X | ||||
| Total Debt | 2.92 B | ||||
| Debt To Equity | 1.06 % | ||||
| Current Ratio | 1.92 X | ||||
| Book Value Per Share | 28.94 X | ||||
| Cash Flow From Operations | 787.8 M | ||||
| Short Ratio | 1.68 X | ||||
| Earnings Per Share | (0.59) X | ||||
| Price To Earnings To Growth | 1.65 X | ||||
| Target Price | 114.0 | ||||
| Number Of Employees | 7.89 K | ||||
| Beta | 1.6 | ||||
| Market Capitalization | 6.1 B | ||||
| Total Asset | 6.21 B | ||||
| Retained Earnings | 618.8 M | ||||
| Working Capital | 1.33 B | ||||
| Current Asset | 1.3 B | ||||
| Current Liabilities | 536.84 M | ||||
| Net Asset | 6.21 B |
About Beacon Roofing Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Beacon Roofing Supply's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Beacon Roofing using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Beacon Roofing Supply based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Beacon Roofing
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Beacon Roofing position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Beacon Roofing will appreciate offsetting losses from the drop in the long position's value.Moving together with Beacon Stock
| 0.68 | DSGR | Distribution Solutions | PairCorr |
| 0.85 | DXPE | DXP Enterprises | PairCorr |
| 0.76 | FERG | Ferguson Plc Financial Report 4th of June 2024 | PairCorr |
Moving against Beacon Stock
| 0.86 | AZ | A2Z Smart Technologies | PairCorr |
| 0.76 | TITN | Titan Machinery Earnings Call This Week | PairCorr |
| 0.71 | BA | Boeing Financial Report 24th of July 2024 | PairCorr |
| 0.67 | MSM | MSC Industrial Direct Financial Report 4th of July 2024 | PairCorr |
| 0.61 | AP | Ampco Pittsburgh | PairCorr |
The ability to find closely correlated positions to Beacon Roofing could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Beacon Roofing when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Beacon Roofing - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Beacon Roofing Supply to buy it.
The correlation of Beacon Roofing is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Beacon Roofing moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Beacon Roofing Supply moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Beacon Roofing can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Beacon Roofing Piotroski F Score and Beacon Roofing Altman Z Score analysis. Note that the Beacon Roofing Supply information on this page should be used as a complementary analysis to other Beacon Roofing's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Complementary Tools for Beacon Stock analysis
When running Beacon Roofing's price analysis, check to measure Beacon Roofing's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Beacon Roofing is operating at the current time. Most of Beacon Roofing's value examination focuses on studying past and present price action to predict the probability of Beacon Roofing's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Beacon Roofing's price. Additionally, you may evaluate how the addition of Beacon Roofing to your portfolios can decrease your overall portfolio volatility.
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Is Beacon Roofing's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Beacon Roofing. If investors know Beacon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Beacon Roofing listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.65) | Earnings Share (0.59) | Revenue Per Share 146.397 | Quarterly Revenue Growth 0.104 | Return On Assets 0.0692 |
The market value of Beacon Roofing Supply is measured differently than its book value, which is the value of Beacon that is recorded on the company's balance sheet. Investors also form their own opinion of Beacon Roofing's value that differs from its market value or its book value, called intrinsic value, which is Beacon Roofing's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Beacon Roofing's market value can be influenced by many factors that don't directly affect Beacon Roofing's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Beacon Roofing's value and its price as these two are different measures arrived at by different means. Investors typically determine if Beacon Roofing is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Beacon Roofing's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.