Intrinsic value of Beacon Roofing Supply - BECN

Previous Close

$27.59

  Intrinsic Value

$20.83

stock screener

  Rating & Target

sell

-25%

Previous close

$27.59

 
Intrinsic value

$20.83

 
Up/down potential

-25%

 
Rating

sell

We calculate the intrinsic value of BECN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  59.40
  53.96
  49.06
  44.66
  40.69
  37.12
  33.91
  31.02
  28.42
  26.08
  23.97
  22.07
  20.36
  18.83
  17.44
  16.20
  15.08
  14.07
  13.17
  12.35
  11.61
  10.95
  10.36
  9.82
  9.34
  8.91
  8.51
  8.16
  7.85
  7.56
Revenue, $m
  6,976
  10,741
  16,011
  23,161
  32,585
  44,682
  59,834
  78,394
  100,671
  126,922
  157,343
  192,070
  231,184
  274,711
  322,634
  374,902
  431,439
  492,153
  556,946
  625,721
  698,391
  774,881
  855,137
  939,123
  1,026,831
  1,118,274
  1,213,493
  1,312,555
  1,415,551
  1,522,599
Variable operating expenses, $m
  6,528
  9,959
  14,763
  21,281
  29,873
  40,900
  54,712
  71,631
  91,939
  115,869
  143,432
  175,090
  210,745
  250,424
  294,110
  341,757
  393,296
  448,642
  507,706
  570,401
  636,646
  706,374
  779,535
  856,096
  936,049
  1,019,408
  1,106,209
  1,196,512
  1,290,403
  1,387,987
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,528
  9,959
  14,763
  21,281
  29,873
  40,900
  54,712
  71,631
  91,939
  115,869
  143,432
  175,090
  210,745
  250,424
  294,110
  341,757
  393,296
  448,642
  507,706
  570,401
  636,646
  706,374
  779,535
  856,096
  936,049
  1,019,408
  1,106,209
  1,196,512
  1,290,403
  1,387,987
Operating income, $m
  449
  781
  1,247
  1,880
  2,713
  3,782
  5,122
  6,763
  8,732
  11,053
  13,911
  16,981
  20,439
  24,287
  28,524
  33,145
  38,143
  43,511
  49,239
  55,320
  61,744
  68,507
  75,602
  83,027
  90,782
  98,866
  107,284
  116,042
  125,148
  134,612
EBITDA, $m
  717
  1,104
  1,646
  2,381
  3,350
  4,593
  6,151
  8,059
  10,349
  13,048
  16,176
  19,746
  23,767
  28,241
  33,168
  38,542
  44,354
  50,595
  57,256
  64,327
  71,798
  79,661
  87,912
  96,546
  105,563
  114,963
  124,752
  134,936
  145,525
  156,530
Interest expense (income), $m
  49
  43
  98
  178
  291
  443
  644
  902
  1,225
  1,620
  2,095
  2,655
  3,303
  4,043
  4,877
  5,805
  6,826
  7,940
  9,145
  10,439
  11,820
  13,286
  14,835
  16,465
  18,176
  19,966
  21,836
  23,785
  25,814
  27,926
  30,121
Earnings before tax, $m
  406
  684
  1,069
  1,589
  2,270
  3,138
  4,220
  5,538
  7,112
  8,958
  11,256
  13,678
  16,396
  19,410
  22,719
  26,319
  30,203
  34,366
  38,800
  43,499
  48,458
  53,672
  59,137
  64,851
  70,815
  77,030
  83,500
  90,228
  97,222
  104,491
Tax expense, $m
  110
  185
  289
  429
  613
  847
  1,139
  1,495
  1,920
  2,419
  3,039
  3,693
  4,427
  5,241
  6,134
  7,106
  8,155
  9,279
  10,476
  11,745
  13,084
  14,491
  15,967
  17,510
  19,120
  20,798
  22,545
  24,362
  26,250
  28,213
Net income, $m
  296
  499
  781
  1,160
  1,657
  2,291
  3,081
  4,043
  5,192
  6,539
  8,217
  9,985
  11,969
  14,169
  16,585
  19,213
  22,048
  25,087
  28,324
  31,755
  35,374
  39,180
  43,170
  47,342
  51,695
  56,232
  60,955
  65,866
  70,972
  76,279

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  5,498
  8,464
  12,617
  18,251
  25,678
  35,210
  47,150
  61,776
  79,331
  100,017
  123,990
  151,356
  182,178
  216,478
  254,243
  295,431
  339,984
  387,827
  438,885
  493,082
  550,347
  610,623
  673,867
  740,050
  809,165
  881,225
  956,259
  1,034,322
  1,115,485
  1,199,842
Adjusted assets (=assets-cash), $m
  5,498
  8,464
  12,617
  18,251
  25,678
  35,210
  47,150
  61,776
  79,331
  100,017
  123,990
  151,356
  182,178
  216,478
  254,243
  295,431
  339,984
  387,827
  438,885
  493,082
  550,347
  610,623
  673,867
  740,050
  809,165
  881,225
  956,259
  1,034,322
  1,115,485
  1,199,842
Revenue / Adjusted assets
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
  1.269
Average production assets, $m
  1,577
  2,427
  3,618
  5,234
  7,364
  10,098
  13,522
  17,717
  22,752
  28,684
  35,559
  43,408
  52,248
  62,085
  72,915
  84,728
  97,505
  111,227
  125,870
  141,413
  157,836
  175,123
  193,261
  212,242
  232,064
  252,730
  274,249
  296,637
  319,915
  344,107
Working capital, $m
  1,116
  1,719
  2,562
  3,706
  5,214
  7,149
  9,573
  12,543
  16,107
  20,308
  25,175
  30,731
  36,989
  43,954
  51,621
  59,984
  69,030
  78,744
  89,111
  100,115
  111,742
  123,981
  136,822
  150,260
  164,293
  178,924
  194,159
  210,009
  226,488
  243,616
Total debt, $m
  1,749
  3,182
  5,188
  7,909
  11,497
  16,101
  21,868
  28,932
  37,411
  47,402
  58,981
  72,199
  87,086
  103,653
  121,893
  141,787
  163,306
  186,415
  211,076
  237,253
  264,912
  294,025
  324,572
  356,538
  389,921
  424,726
  460,967
  498,672
  537,874
  578,618
Total liabilities, $m
  2,655
  4,088
  6,094
  8,815
  12,402
  17,007
  22,774
  29,838
  38,317
  48,308
  59,887
  73,105
  87,992
  104,559
  122,799
  142,693
  164,212
  187,321
  211,982
  238,159
  265,818
  294,931
  325,478
  357,444
  390,827
  425,631
  461,873
  499,578
  538,779
  579,524
Total equity, $m
  2,842
  4,376
  6,523
  9,436
  13,276
  18,204
  24,377
  31,938
  41,014
  51,709
  64,103
  78,251
  94,186
  111,919
  131,443
  152,738
  175,772
  200,507
  226,904
  254,923
  284,529
  315,692
  348,389
  382,606
  418,339
  455,593
  494,386
  534,744
  576,706
  620,318
Total liabilities and equity, $m
  5,497
  8,464
  12,617
  18,251
  25,678
  35,211
  47,151
  61,776
  79,331
  100,017
  123,990
  151,356
  182,178
  216,478
  254,242
  295,431
  339,984
  387,828
  438,886
  493,082
  550,347
  610,623
  673,867
  740,050
  809,166
  881,224
  956,259
  1,034,322
  1,115,485
  1,199,842
Debt-to-equity ratio
  0.620
  0.730
  0.800
  0.840
  0.870
  0.880
  0.900
  0.910
  0.910
  0.920
  0.920
  0.920
  0.920
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
Adjusted equity ratio
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  296
  499
  781
  1,160
  1,657
  2,291
  3,081
  4,043
  5,192
  6,539
  8,217
  9,985
  11,969
  14,169
  16,585
  19,213
  22,048
  25,087
  28,324
  31,755
  35,374
  39,180
  43,170
  47,342
  51,695
  56,232
  60,955
  65,866
  70,972
  76,279
Depreciation, amort., depletion, $m
  269
  323
  399
  502
  637
  811
  1,029
  1,297
  1,617
  1,995
  2,265
  2,765
  3,328
  3,954
  4,644
  5,397
  6,211
  7,084
  8,017
  9,007
  10,053
  11,154
  12,310
  13,519
  14,781
  16,097
  17,468
  18,894
  20,377
  21,918
Funds from operations, $m
  565
  822
  1,179
  1,661
  2,294
  3,102
  4,110
  5,339
  6,809
  8,534
  10,482
  12,750
  15,297
  18,124
  21,229
  24,609
  28,259
  32,172
  36,341
  40,762
  45,428
  50,335
  55,479
  60,860
  66,476
  72,330
  78,423
  84,761
  91,349
  98,196
Change in working capital, $m
  416
  602
  843
  1,144
  1,508
  1,935
  2,424
  2,970
  3,564
  4,200
  4,867
  5,556
  6,258
  6,964
  7,668
  8,363
  9,046
  9,714
  10,367
  11,004
  11,627
  12,238
  12,841
  13,438
  14,033
  14,631
  15,235
  15,850
  16,479
  17,128
Cash from operations, $m
  149
  219
  336
  517
  786
  1,167
  1,686
  2,370
  3,245
  4,334
  5,615
  7,193
  9,039
  11,160
  13,562
  16,247
  19,213
  22,457
  25,974
  29,758
  33,801
  38,096
  42,639
  47,422
  52,443
  57,699
  63,188
  68,911
  74,870
  81,069
Maintenance CAPEX, $m
  -63
  -100
  -155
  -230
  -333
  -469
  -643
  -861
  -1,128
  -1,449
  -1,827
  -2,265
  -2,765
  -3,328
  -3,954
  -4,644
  -5,397
  -6,211
  -7,084
  -8,017
  -9,007
  -10,053
  -11,154
  -12,310
  -13,519
  -14,781
  -16,097
  -17,468
  -18,894
  -20,377
New CAPEX, $m
  -589
  -851
  -1,191
  -1,616
  -2,130
  -2,734
  -3,424
  -4,195
  -5,035
  -5,933
  -6,875
  -7,848
  -8,840
  -9,837
  -10,831
  -11,813
  -12,777
  -13,721
  -14,643
  -15,543
  -16,423
  -17,287
  -18,138
  -18,981
  -19,822
  -20,666
  -21,520
  -22,388
  -23,277
  -24,193
Cash from investing activities, $m
  -652
  -951
  -1,346
  -1,846
  -2,463
  -3,203
  -4,067
  -5,056
  -6,163
  -7,382
  -8,702
  -10,113
  -11,605
  -13,165
  -14,785
  -16,457
  -18,174
  -19,932
  -21,727
  -23,560
  -25,430
  -27,340
  -29,292
  -31,291
  -33,341
  -35,447
  -37,617
  -39,856
  -42,171
  -44,570
Free cash flow, $m
  -503
  -732
  -1,010
  -1,329
  -1,677
  -2,036
  -2,382
  -2,686
  -2,919
  -3,047
  -3,088
  -2,920
  -2,566
  -2,005
  -1,223
  -210
  1,039
  2,526
  4,247
  6,197
  8,370
  10,756
  13,346
  16,132
  19,103
  22,252
  25,571
  29,055
  32,698
  36,499
Issuance/(repayment) of debt, $m
  988
  1,433
  2,006
  2,721
  3,587
  4,604
  5,767
  7,064
  8,479
  9,991
  11,579
  13,218
  14,887
  16,567
  18,240
  19,894
  21,519
  23,109
  24,661
  26,177
  27,659
  29,113
  30,546
  31,967
  33,383
  34,805
  36,242
  37,704
  39,202
  40,744
Issuance/(repurchase) of shares, $m
  764
  1,035
  1,366
  1,753
  2,183
  2,637
  3,092
  3,519
  3,884
  4,155
  4,177
  4,163
  3,966
  3,564
  2,939
  2,082
  985
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,752
  2,468
  3,372
  4,474
  5,770
  7,241
  8,859
  10,583
  12,363
  14,146
  15,756
  17,381
  18,853
  20,131
  21,179
  21,976
  22,504
  23,109
  24,661
  26,177
  27,659
  29,113
  30,546
  31,967
  33,383
  34,805
  36,242
  37,704
  39,202
  40,744
Total cash flow (excl. dividends), $m
  1,249
  1,736
  2,363
  3,146
  4,093
  5,205
  6,478
  7,897
  9,445
  11,099
  12,668
  14,461
  16,288
  18,125
  19,956
  21,765
  23,543
  25,634
  28,908
  32,374
  36,029
  39,870
  43,893
  48,098
  52,485
  57,056
  61,813
  66,759
  71,900
  77,243
Retained Cash Flow (-), $m
  -1,060
  -1,534
  -2,147
  -2,913
  -3,840
  -4,928
  -6,173
  -7,562
  -9,076
  -10,695
  -12,394
  -14,148
  -15,935
  -17,733
  -19,524
  -21,294
  -23,034
  -24,735
  -26,397
  -28,020
  -29,606
  -31,163
  -32,697
  -34,217
  -35,733
  -37,255
  -38,793
  -40,358
  -41,961
  -43,612
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  189
  202
  216
  233
  253
  277
  305
  335
  369
  405
  274
  313
  352
  392
  432
  471
  509
  899
  2,511
  4,355
  6,423
  8,707
  11,196
  13,881
  16,753
  19,801
  23,020
  26,401
  29,939
  33,631
Discount rate, %
  4.40
  4.62
  4.85
  5.09
  5.35
  5.62
  5.90
  6.19
  6.50
  6.83
  7.17
  7.53
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
PV of cash for distribution, $m
  181
  185
  187
  191
  195
  200
  204
  207
  209
  209
  128
  131
  131
  128
  123
  116
  107
  159
  371
  529
  632
  684
  691
  662
  607
  535
  455
  373
  297
  228
Current shareholders' claim on cash, %
  71.1
  52.9
  40.8
  32.5
  26.7
  22.4
  19.3
  17.0
  15.2
  13.9
  12.9
  12.2
  11.6
  11.2
  10.9
  10.8
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7
  10.7

Beacon Roofing Supply, Inc. is engaged in the distribution of residential and non-residential roofing materials in the United States and Canada. It also distributes complementary building products for residential and non-residential building exteriors. Its product portfolio includes residential roofing products, non-residential roofing products and complementary building products. The residential roofing products include asphalt shingles, clay tile, slate and metal roofing, among others. The non-residential roofing products include single-ply roofing, asphalt, metal, modified bitumen and build-up roofing, among others. The complementary building products include vinyl siding, fiber cement siding, stone veneer and windows, among others. The Company offers its products under various trade names, including Alabama Roofing Supply, Atlantic Building Products, Applicators Sales, Southern Roof Center, Statewide Wholesale, Structural Materials and The Roof Center.

FINANCIAL RATIOS  of  Beacon Roofing Supply (BECN)

Valuation Ratios
P/E Ratio 18.5
Price to Sales 0.4
Price to Book 1
Price to Tangible Book
Price to Cash Flow 5.9
Price to Free Cash Flow 6.8
Growth Rates
Sales Growth Rate 6.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 53.8%
Cap. Spend. - 3 Yr. Gr. Rate 1.6%
Financial Strength
Quick Ratio 10
Current Ratio 0
LT Debt to Equity 42.1%
Total Debt to Equity 42.9%
Interest Coverage 4
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 4.6%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.9%
Return On Equity 6.5%
Return On Equity - 3 Yr. Avg. 7.3%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 24.6%
Gross Margin - 3 Yr. Avg. 24.3%
EBITDA Margin 7.5%
EBITDA Margin - 3 Yr. Avg. 6.9%
Operating Margin 4.9%
Oper. Margin - 3 Yr. Avg. 4.9%
Pre-Tax Margin 3.7%
Pre-Tax Margin - 3 Yr. Avg. 3.8%
Net Profit Margin 2.3%
Net Profit Margin - 3 Yr. Avg. 2.3%
Effective Tax Rate 38%
Eff/ Tax Rate - 3 Yr. Avg. 39.4%
Payout Ratio 0%

BECN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BECN stock intrinsic value calculation we used $4376.67 million for the last fiscal year's total revenue generated by Beacon Roofing Supply. The default revenue input number comes from 0001 income statement of Beacon Roofing Supply. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BECN stock valuation model: a) initial revenue growth rate of 59.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.4%, whose default value for BECN is calculated based on our internal credit rating of Beacon Roofing Supply, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Beacon Roofing Supply.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BECN stock the variable cost ratio is equal to 95%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BECN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.6% for Beacon Roofing Supply.

Corporate tax rate of 27% is the nominal tax rate for Beacon Roofing Supply. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BECN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BECN are equal to 22.6%.

Life of production assets of 15.7 years is the average useful life of capital assets used in Beacon Roofing Supply operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BECN is equal to 16%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1781.806 million for Beacon Roofing Supply - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 68.111 million for Beacon Roofing Supply is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Beacon Roofing Supply at the current share price and the inputted number of shares is $1.9 billion.

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COMPANY NEWS

▶ New Strong Sell Stocks for October 17th   [Oct-17-18 07:25AM  Zacks]
▶ Trade of the Day: Beacon Roofing Supply, Inc. (BECN)   [Sep-18-18 09:10AM  InvestorPlace]
▶ Stock Market Stays Positive; Repair Plays Await Storm   [12:02PM  Investor's Business Daily]
▶ Trade of the Day: Beacon Roofing Supply, Inc. (BECN)   [Aug-10-18 09:22AM  InvestorPlace]
▶ Why Beacon Roofing Supply Stock Dropped 14%   [Aug-08-18 08:13PM  Motley Fool]
▶ Beacon Roofing: Fiscal 3Q Earnings Snapshot   [04:29PM  Associated Press]
▶ 3 Incredibly Cheap Homebuilding Products Stocks   [Jun-18-18 11:34AM  Motley Fool]
▶ Beacon Roofing: Fiscal 2Q Earnings Snapshot   [May-08-18 04:49PM  Associated Press]
▶ 3 Top Stocks on Sale This Quarter   [Apr-20-18 08:02AM  Motley Fool]
▶ New Strong Buy Stocks for February 12th   [Feb-12-18 09:52AM  Zacks]
▶ Beacon Roofing beats Street 1Q forecasts   [Feb-08-18 04:19PM  Associated Press]

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