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Foundation Building Materials

NYSE:FBM
Snowflake Description

Moderate growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FBM
NYSE
$860M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Foundation Building Materials, Inc. distributes building products in the United States and Canada. The last earnings update was 36 days ago. More info.


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FBM Share Price and Events
7 Day Returns
-3.7%
NYSE:FBM
2.1%
US Trade Distributors
0.7%
US Market
1 Year Returns
149.1%
NYSE:FBM
22.4%
US Trade Distributors
18.2%
US Market
FBM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Foundation Building Materials (FBM) -3.7% -5% 8.1% 149.1% - -
US Trade Distributors 2.1% -1.2% 9.4% 22.4% 23.1% 35.3%
US Market 0.7% 1.5% 5% 18.2% 35.8% 52.7%
1 Year Return vs Industry and Market
  • FBM outperformed the Trade Distributors industry which returned 22.4% over the past year.
  • FBM outperformed the Market in United States of America which returned 18.2% over the past year.
Price Volatility
FBM
Industry
5yr Volatility vs Market

Value

 Is Foundation Building Materials undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Foundation Building Materials to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Foundation Building Materials.

NYSE:FBM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FBM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.947 (1 + (1- 21%) (82.15%))
1.376
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.376 * 5.44%)
9.23%

Discounted Cash Flow Calculation for NYSE:FBM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Foundation Building Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:FBM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.23%)
2020 81.65 Analyst x2 74.75
2021 84.00 Analyst x1 70.41
2022 82.00 Analyst x1 62.93
2023 85.00 Analyst x1 59.72
2024 86.02 Est @ 1.2% 55.33
2025 87.19 Est @ 1.36% 51.35
2026 88.48 Est @ 1.48% 47.70
2027 89.85 Est @ 1.55% 44.35
2028 91.30 Est @ 1.61% 41.26
2029 92.81 Est @ 1.65% 38.40
Present value of next 10 years cash flows $546.00
NYSE:FBM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $92.81 × (1 + 1.74%) ÷ (9.23% – 1.74%)
$1,261.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,261.37 ÷ (1 + 9.23%)10
$521.91
NYSE:FBM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $546.00 + $521.91
$1,067.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,067.91 / 42.99
$24.84
NYSE:FBM Discount to Share Price
Calculation Result
Value per share (USD) From above. $24.84
Current discount Discount to share price of $20.00
= -1 x ($20.00 - $24.84) / $24.84
19.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Foundation Building Materials is available for.
Intrinsic value
19%
Share price is $20 vs Future cash flow value of $24.84
Current Discount Checks
For Foundation Building Materials to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Foundation Building Materials's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Foundation Building Materials's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Foundation Building Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Foundation Building Materials's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FBM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.80
NYSE:FBM Share Price ** NYSE (2019-12-10) in USD $20
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 17.19x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Foundation Building Materials.

NYSE:FBM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FBM Share Price ÷ EPS (both in USD)

= 20 ÷ 0.80

25.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Foundation Building Materials is overvalued based on earnings compared to the US Trade Distributors industry average.
  • Foundation Building Materials is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Foundation Building Materials's expected growth come at a high price?
Raw Data
NYSE:FBM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
21.3%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.06x
United States of America Market PEG Ratio Median Figure of 2,046 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:FBM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.13x ÷ 21.3%

1.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Foundation Building Materials is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Foundation Building Materials's assets?
Raw Data
NYSE:FBM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $9.21
NYSE:FBM Share Price * NYSE (2019-12-10) in USD $20
United States of America Trade Distributors Industry PB Ratio Median Figure of 51 Publicly-Listed Trade Distributors Companies 1.67x
United States of America Market PB Ratio Median Figure of 5,089 Publicly-Listed Companies 1.78x
NYSE:FBM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FBM Share Price ÷ Book Value per Share (both in USD)

= 20 ÷ 9.21

2.17x

* Primary Listing of Foundation Building Materials.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Foundation Building Materials is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess Foundation Building Materials's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Foundation Building Materials has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Foundation Building Materials expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Foundation Building Materials expected to grow at an attractive rate?
  • Foundation Building Materials's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Foundation Building Materials's earnings growth is expected to exceed the United States of America market average.
  • Foundation Building Materials's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FBM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FBM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 21.3%
NYSE:FBM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.5%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FBM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FBM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,521 146 87 1
2022-12-31 2,425 139 84 1
2021-12-31 2,330 137 63 3
2020-12-31 2,264 129 49 8
2019-12-31 2,180 114 40 8
2019-12-11
NYSE:FBM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 2,156 159 34
2019-06-30 2,133 132 -16
2019-03-31 2,096 103 -29
2018-12-31 2,044 69 -36
2018-09-30 1,972 42 36
2018-06-30 1,897 46 74
2018-03-31 1,774 60 72
2017-12-31 1,790 77 78
2017-09-30 1,809 58 -6
2017-06-30 1,756 36 -21
2017-03-31 1,627 9 -23
2016-12-31 1,393 33 -28

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Foundation Building Materials's earnings are expected to grow significantly at over 20% yearly.
  • Foundation Building Materials's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FBM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Foundation Building Materials Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FBM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.86 1.86 1.86 1.00
2022-12-31 1.83 1.83 1.83 1.00
2021-12-31 1.40 1.54 1.26 2.00
2020-12-31 1.12 1.25 1.04 6.00
2019-12-31 0.91 0.95 0.86 6.00
2019-12-11
NYSE:FBM Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.80
2019-06-30 -0.37
2019-03-31 -0.68
2018-12-31 -0.85
2018-09-30 0.85
2018-06-30 1.73
2018-03-31 1.67
2017-12-31 1.88
2017-09-30 -0.15
2017-06-30 -0.60
2017-03-31 -0.73
2016-12-31 -0.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Foundation Building Materials is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Foundation Building Materials's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Foundation Building Materials has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Foundation Building Materials performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Foundation Building Materials's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Foundation Building Materials has delivered over 20% year on year earnings growth in the past 5 years.
  • Foundation Building Materials's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Foundation Building Materials's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
Foundation Building Materials's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Foundation Building Materials Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FBM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 2,155.85 34.19 473.92
2019-06-30 2,133.22 -16.08 463.29
2019-03-31 2,095.52 -29.33 450.71
2018-12-31 2,044.31 -36.42 438.13
2018-09-30 1,971.83 36.41 429.72
2018-06-30 1,897.44 74.09 416.26
2018-03-31 1,774.32 71.71 387.05
2017-12-31 1,790.11 77.91 390.00
2017-09-30 1,808.64 -5.66 371.36
2017-06-30 1,756.31 -21.12 367.51
2017-03-31 1,627.36 -23.18 352.59
2016-12-31 1,392.51 -28.37 301.75
2016-09-30 1,141.96 -27.77 268.33
2016-06-30 956.01 -7.81 218.91
2016-03-31 875.54 -7.02 192.66
2015-12-31 820.61 -7.93 174.38
2014-12-31 508.85 -1.84 115.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Foundation Building Materials has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Foundation Building Materials used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • Foundation Building Materials has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Foundation Building Materials's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Foundation Building Materials has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Foundation Building Materials's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Foundation Building Materials's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Foundation Building Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Foundation Building Materials's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Foundation Building Materials's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Foundation Building Materials Company Filings, last reported 2 months ago.

NYSE:FBM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 395.82 581.98 22.67
2019-06-30 382.66 584.08 6.45
2019-03-31 368.43 598.10 4.98
2018-12-31 366.35 588.50 15.30
2018-09-30 348.09 747.92 10.56
2018-06-30 382.13 633.24 7.08
2018-03-31 376.81 626.63 8.65
2017-12-31 378.66 581.87 12.10
2017-09-30 302.84 611.58 6.31
2017-06-30 299.84 604.07 19.95
2017-03-31 297.46 569.63 8.79
2016-12-31 328.52 733.96 28.55
2016-09-30 338.20 713.40 23.39
2016-06-30 286.51 423.03 13.23
2016-03-31 290.75 371.81 10.66
2015-12-31 290.75 371.81 10.66
2014-12-31 45.91 178.33 2.22
  • Foundation Building Materials's level of debt (147%) compared to net worth is high (greater than 40%).
  • Unable to establish if Foundation Building Materials's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (27.4%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Foundation Building Materials's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Foundation Building Materials has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Foundation Building Materials's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Foundation Building Materials dividends. Estimated to be 0% next year.
If you bought $2,000 of Foundation Building Materials shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Foundation Building Materials's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Foundation Building Materials's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FBM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1960 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FBM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2019-12-11

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Foundation Building Materials has not reported any payouts.
  • Unable to verify if Foundation Building Materials's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Foundation Building Materials's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Foundation Building Materials has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Foundation Building Materials's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Foundation Building Materials's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Foundation Building Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Foundation Building Materials has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Foundation Building Materials's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ruben Mendoza
COMPENSATION $3,279,704
AGE 55
CEO Bio

Mr. Ruben D. Mendoza serves as the Chief Executive Officer and President of FBM Intermediate Holdings LLC. Mr. Mendoza founded Foundation Building Materials, Inc. in 2011 and serves as its Chief Executive Officer and President. He has a deep understanding of business, operations and strategic planning to the Foundation Building Materials board. He has an extensive industry experience gained over 25 years. He originally joined AMS in 1991, after several years as AMS’ Vice President and Sales Manager, he served as its Chief Executive Officer since 2003. AMS grew significantly under his leadership, particularly across the West Coast and Northern Mexico through green fields and strategic acquisitions. He has been a Director at Foundation Building Materials Inc. since February 2017. Mr. Mendoza attended California State University and has completed executive education at Harvard Business School (Strategy), Wharton School of Business (Management) and Northwestern (Marketing).

CEO Compensation
  • Ruben's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Ruben's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Foundation Building Materials management team in years:

4.4
Average Tenure
59
Average Age
  • The tenure for the Foundation Building Materials management team is about average.
Management Team

Ruben Mendoza

TITLE
President
COMPENSATION
$3M
AGE
55

John Gorey

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
59

Pete Welly

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
61
TENURE
6.9 yrs

Barbara Bitzer

TITLE
Chief Accounting Officer & Senior Controller
AGE
52
TENURE
2.9 yrs

John Moten

TITLE
Vice President of Investor Relations
TENURE
2.3 yrs

Ric Tilley

TITLE
VP, General Counsel & Secretary
COMPENSATION
$648K
AGE
43
TENURE
3.9 yrs

Alan Thompson

TITLE
Senior Vice President of Sales & Marketing
COMPENSATION
$650K
AGE
60
TENURE
6.9 yrs

Jim Carpenter

TITLE
Vice President of Business Development
COMPENSATION
$408K
AGE
62
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the Foundation Building Materials board of directors in years:

1.8
Average Tenure
48
Average Age
  • The average tenure for the Foundation Building Materials board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chris Meyer

TITLE
Chairman
AGE
48
TENURE
2.4 yrs

Ruben Mendoza

TITLE
President
COMPENSATION
$3M
AGE
55
TENURE
2.8 yrs

Jim Underhill

TITLE
Independent Director
COMPENSATION
$145K
AGE
63
TENURE
2.8 yrs

Rafael Colorado

TITLE
Non-Independent Director
AGE
41
TENURE
1.7 yrs

Matt Espe

TITLE
Independent Director
COMPENSATION
$212K
AGE
60
TENURE
1.8 yrs

Chase Hagin

TITLE
Non-Independent Director
AGE
36
TENURE
1.8 yrs

Chad Lewis

TITLE
Non-Independent Director
AGE
36
TENURE
1.7 yrs

Allison Navitskas

TITLE
Director
AGE
43
TENURE
0.9 yrs

Fareed Khan

TITLE
Independent Director
COMPENSATION
$127K
AGE
53
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
16. Oct 19 Sell Lone Star Funds Company 16. Oct 19 16. Oct 19 -712,500 $16.28 $-11,597,719
25. Sep 19 Sell Lone Star Funds Company 24. Sep 19 24. Sep 19 -4,750,000 $16.28 $-77,318,125
X
Management checks
We assess Foundation Building Materials's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Foundation Building Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Look At The Fair Value Of Foundation Building Materials, Inc. (NYSE:FBM)

(NYSE:FBM) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $75.3m $63.0m $60.0m $61.0m $58.5m $57.3m $56.9m $57.1m $57.7m $58.6m Growth Rate Estimate Source Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ -4.14% Est @ -2.08% Est @ -0.64% Est @ 0.37% Est @ 1.08% Est @ 1.58% Present Value ($, Millions) Discounted @ 10.73% $68.0 $51.4 $44.2 $40.6 $35.1 $31.1 $27.9 $25.3 $23.1 $21.2 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $367.7m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

Should You Think About Buying Foundation Building Materials, Inc. (NYSE:FBM) Now?

See our latest analysis for Foundation Building Materials Is Foundation Building Materials still cheap? … Given that Foundation Building Materials’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … If you are no longer interested in Foundation Building Materials, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Does Market Volatility Impact Foundation Building Materials, Inc.'s (NYSE:FBM) Share Price?

A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Given that it has a beta of 1.35, we can surmise that the Foundation Building Materials share price has been fairly sensitive to market volatility (over the last 5 years). … If this beta value holds true in the future, Foundation Building Materials shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down.

Simply Wall St -

Estimating The Intrinsic Value Of Foundation Building Materials, Inc. (NYSE:FBM)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $66.75 $74.10 $63.00 $60.00 $61.00 $58.70 $57.63 $57.37 $57.65 $58.33 Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ -3.77% Est @ -1.82% Est @ -0.46% Est @ 0.5% Est @ 1.17% Present Value ($, Millions) Discounted @ 11.39% $59.92 $59.72 $45.58 $38.97 $35.57 $30.73 $27.08 $24.20 $21.84 $19.83 Present Value of 10-year Cash Flow (PVCF)= $363.45m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11.4%.

Simply Wall St -

Did You Manage To Avoid Foundation Building Materials's (NYSE:FBM) 13% Share Price Drop?

But in truth the last year hasn't been good for the share price. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St -

Is Foundation Building Materials, Inc. (NYSE:FBM) A Volatile Stock?

(NYSE:FBM), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Estimating The Intrinsic Value Of Foundation Building Materials, Inc. (NYSE:FBM)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

With A Return On Equity Of 12%, Has Foundation Building Materials, Inc.'s (NYSE:FBM) Management Done Well?

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.12 in profit. … Check out our latest analysis for Foundation Building Materials? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Foundation Building Materials Inc (NYSE:FBM): A Look At Return On Capital

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Foundation Building Materials is able to use capital to create earnings will help us understand your potential return. … Foundation Building Materials's Return On Capital Employed

Simply Wall St -

Have Investors Priced In Foundation Building Materials Inc's (NYSE:FBM) Growth?

Foundation Building Materials Inc (NYSE:FBM) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $10.75 is based on unrealistic expectations. … See our latest analysis for Foundation Building Materials? … The excitement around Foundation Building Materials's growth potential is not unfounded

Simply Wall St -

Company Info

Description

Foundation Building Materials, Inc. distributes building products in the United States and Canada. It offers wallboard, suspended ceiling system, and metal framing products. The company also provides complementary and other products, tools, and accessories, such as wallboard accessories, stucco and finishing systems, safety accessories, fasteners, insulations, doors, and roofing products. It serves its products to commercial, residential, and other specialty contractors. The company was founded in 2011 and is headquartered in Tustin, California. Foundation Building Materials, Inc operates as a subsidiary of LSF9 Cypress Parent 2 LLC.

Details
Name: Foundation Building Materials, Inc.
FBM
Exchange: NYSE
Founded: 2011
$859,796,800
42,989,840
Website: http://www.fbmsales.com
Address: Foundation Building Materials, Inc.
2741 Walnut Avenue,
Suite 200,
Tustin,
California, 92780,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FBM Common Stock New York Stock Exchange US USD 10. Feb 2017
DB 26F Common Stock Deutsche Boerse AG DE EUR 10. Feb 2017
Number of employees
Current staff
Staff numbers
3,400
Foundation Building Materials employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/11 01:00
End of day share price update: 2019/12/10 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.