In this article we discuss the 5 building materials companies in USA. If you want to read our detailed analysis of these companies, go directly to the Top 15 Building Materials Companies in USA.
5. Builders FirstSource, Inc. (NASDAQ: BLDR)
Market Capitalization: $8,840,000,000
Number of Hedge Fund Holders: 48
Builders FirstSource, Inc. manufactures and supplies building materials. Builders FirstSource, Inc. has its headquarters in Dallas, Texas. The company is popular as it is the largest supplier of most construction-related products and value-added construction services in the US. The company has over 15,000 employees in 550 locations and 40 states across the United States. The company provides materials for new construction in residential projects, repairing projects, and remodeling projects. Builders FirstSource, Inc. was established in the year 1998. As of June 2021, Builders FirstSource has a market capitalization of $8.84 billion.
“Builders FirstSource climbed into the top five the old-fashioned way – good results, an attractive merger announcement, and a higher stock price. To paraphrase my January 2020 letter when explaining our thesis; “Builders is the nation’s largest supplier of structural building products and services to the professional market for new residential construction and repair and remodeling. This is a consolidating, cash generative industry starting to favor the biggest players, and with minimal real disintermediation risks. However, they do operate in a cyclical industry.” In August, Builders announced a merger with its main public competitor BMC Stock Holdings which will further consolidate the industry, solve a succession issue at Builders and lower its leverage – at a fair price. The combined company has near-term potential free cash flow of over $3/share – though volatile lumber prices will always cause some noise – and much higher long-term free cash flow potential. Chairman of the Board Paul Levy has been working on this deal for a while – we send him our regards and thanks.”