Beacon Roofing Supply, Inc. (BECN) Stock: Is This Service Stock Worth Your Investment?

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Beacon Roofing Supply, Inc. (BECN) is trending down in the market today. The company, focused on the service sector, is presently priced at $34.11 after falling 2.37% so far today. In terms of service companies, there are quite a few aspects that have the ability to cause movement in the market. News is one of the most common reasons for movement. Here are the recent headlines relating to BECN:

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Mar-25-19 04:13PM Beacon Roofing Supply Provides Fiscal 2019 Second-Quarter Estimate Reflecting Unfavorable Weather Impact; Full-Year 2019 Adjusted EPS Expected to Meet Lower End of Guidance Range
09:43AM Design a Balanced Portfolio With These 4 Low P/CF Stocks
Mar-20-19 09:44AM Can Growth Initiatives Aid Home Depot Despite Sales Woes?
Mar-19-19 11:05AM Beacon Roofing Supply to Participate in the Seaport Global Annual Transports & Industrials Conference
Mar-18-19 09:30AM BECN vs. FAST: Which Stock Is the Better Value Option?

Nonetheless, when making a decision to invest, investors should take a look at far more than just news, this is especially the case in the ever incredibly complex service space. Here’s what’s happening with Beacon Roofing Supply, Inc..

The Performance That We’ve Seen From BECN

Although a move down in a single session, like the fall that we’re seeing from Beacon Roofing Supply, Inc. may cause fear in some investors, a single session move alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always important to look at trends experienced by the stock just a single trading day. As it relates to BECN, below are the returns on investment that we’ve seen:

  • Past Seven Days – Throughout the last week, BECN has produced a price change that amounts to -2.77%.
  • Past 30 Days – The return from Beacon Roofing Supply, Inc. in the past month has been -9.26%.
  • Past 3 Months – Throughout the last three months, the company has generated a return on investment of 10.39%
  • Past 6 Months – In the last 6 months, we’ve seen a performance that works out to -14.51% from the stock.
  • YTD – Since the close of last year BECN has produced a ROI of 7.53%.
  • Full Year – Finally, throughout the last full year, we’ve seen a change that comes to -34.64% from BECN. In this period of time, the stock has traded at a high of -37.99% and a low of 36.63%.

Ratios To Watch

Looking at a few key ratios associated with a company can provide traders an understanding of how dangerous and/or potentially profitable a an investment option may be. Below are a few of the important ratios to think about when looking at BECN.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the value of the stock is headed for declines. Throughout the sector, strong service stocks tend to have a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to Beacon Roofing Supply, Inc., the stock’s short ratio is 9.13.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure If a company is able to cover its debts when they mature using quick assets or current assets. do have strong quick and current ratios. As it relates to BECN, the quick and current ratios add up to 1.30 and 2.40 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the share price of the stock. In this case, the book to share value ratio equates to 27.46.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of shares. In the case of BECN, the cash to share value ratio works out to 0.26.

Big Money And Beacon Roofing Supply, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in BECN, here’s what we’re seeing:

Institutions own 0 of the company. Institutional interest has moved by -0.41% over the past three months. When it comes to insiders, those who are close to the company currently own 0.60% percent of BECN shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

What Analysts Think About Beacon Roofing Supply, Inc.

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to use their opinions when validating your own due diligence when it comes to making investment decisions in the service sector. Below are the recent moves that we’ve seen from analysts with regard to BECN.

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Feb-25-19 Initiated Buckingham Research Neutral
Dec-14-18 Downgrade Wedbush Outperform → Neutral
Nov-28-18 Downgrade Longbow Buy → Neutral
Nov-21-18 Upgrade Wells Fargo Underperform → Market Perform
Nov-20-18 Downgrade Raymond James Strong Buy → Outperform

What We’ve Seen In Financial Results

What have ween seen from BECN in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – At the moment, Wall Street analysts are expecting that Beacon Roofing Supply, Inc. will report earnings per diluted share that totals up to be 3.50, with -0.25 to be announced in the earnings report for the current quarter. Although this information isn’t associated with earnings, because we’re chatting on the topic of Wall Street analysts, Beacon Roofing Supply, Inc. is presently graded as a 2.60 when rated on a scale from 1 to 5 where 1 is the poorest possible Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – In the past 5 years, Beacon Roofing Supply, Inc. has reported a change in revenue that adds up to 23.40%. EPS through the last half decade have experienced movement in the amount of -20.70%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly represented in the human world, the company has generated a earnings change by -133.20%. BECN has also experienced a change in terms of sales that totals 53.40%.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 71.15M shares of Beacon Roofing Supply, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, BECN has a float of 62.10M.

It’s also important to pay attention to the short percentage of the float. Think about it, if a large percentage of the float is shorted, the overall opinion among investors is that the equity is headed for a deep dive. In regard to BECN, the percentage of the float that is shorted currently sits at 11.40%. Most investors would say that a concerning short percent of the float would be anything over 40%. Nonetheless, I have seen that a short percent of the float over 26% is probably going to be a a play that could prove to be very risky.

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