Demystifying Beacon Roofing Supply: Insights From 4 Analyst Reviews

Across the recent three months, 4 analysts have shared their insights on Beacon Roofing Supply BECN, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $99.75, along with a high estimate of $119.00 and a low estimate of $80.00. The current average, unchanged from the previous average price target, holds steady.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Beacon Roofing Supply is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Beacon Roofing Supply. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Beacon Roofing Supply compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Beacon Roofing Supply's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Beacon Roofing Supply's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Beacon Roofing Supply analyst ratings.

All You Need to Know About Beacon Roofing Supply

Beacon Roofing Supply Inc manufactures and sells roofing and building materials throughout the United States and Canada. Beacon's key customers consist of contractors, home builders, lumberyards, retailers, wholesale distributors, and building materials suppliers. The company's product portfolio includes both residential and non-residential roofing materials, siding, windows, and waterproofing systems. The majority of revenue is generated from residential and non-residential roofing products. The vast majority of Beacon's revenue comes from the United States.

Key Indicators: Beacon Roofing Supply's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Beacon Roofing Supply showcased positive performance, achieving a revenue growth rate of 7.0% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Beacon Roofing Supply's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -10.17%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Beacon Roofing Supply's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -13.93%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.03%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Beacon Roofing Supply's debt-to-equity ratio is below the industry average. With a ratio of 1.73, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.