Builders FirstSource Inc. (BLDR) exhibits 30.4% gross margins and 8.8% return on invested capital within Consumer Discretionary (RETAIL: Building Materials), balanced against a 8.7x enterprise multiple and 4.8% implied options volatility.
Sustained 30.4% gross profitability converts into 5.2% operating margin and 8.8% ROIC, outpacing sector cost of capital.
ROIC: 8.8% // GM: 30.4%YoY revenue trajectory of -7.4% paired with 12.58% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -7.4% // FCF YLD: 12.58%Altman Z-Score of 2.34 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.34 // F-SCORE: 6/9Trading at 15.6x trailing P/E (14.5x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 15.6x // EV/EBITDA: 8.7xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $64.91 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in RETAIL: Building Materials require continuous execution to defend 2.9% net margins.
NET MARGIN: 2.9% // D/E: 0.66x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
Unblur the exact $50,000 delta-adjusted ETF/options hedge ratio for BLDR & activate live FRED threshold breach alerts.