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Global Building Materials Companies: Strongest To Weakest

In this report, S&P Global Ratings ranks its universe of rated global building material companies from strongest to weakest. We rank the companies by rating, outlook, stand-alone credit profile (SACP), business and financial risk profile, and liquidity assessment. Investment-grade companies are ranked by business risk profile, then financial risk profile. Speculative-grade companies are ordered by financial risk profile, then business risk profile. If companies are not distinguished by these factors, we list them in alphabetical order.

Where government, group, or rating above the sovereign considerations apply, the final rating may differ from the SACP--in line with our corporate rating methodology. Where the SACP differs from the anchor, as it does for more than one quarter of the ratings, we apply one or more modifiers, which may include a modifier for liquidity. For informational purposes we note the anchor and active modifiers of each company. For our more detailed analysis, please refer to the company-specific pages on RatingsDirect via the hyperlinks below.

Most of our business risk assessments closely correlate with the corresponding competitive positions, as our charts and comments show (see the end of this report). Where they diverge, it is usually because we consider country risk higher, and this constrains the competitive position. An explicit rating factor for about 3% of the companies is government or group ownership, or sovereign rating.

For our sector outlook and analysis, please refer the Related Research section at the end of this article.

Table 1

Global building material companies--Strongest to weakest
Company Country Foreign currency LT Outlook Stand-alone credit profile Business risk profile Financial risk profile Liquidity Financial policy Anchor Modifier
1

Geberit AG

Switzerland A+ Negative a+ Strong Minimal Strong (0) Neutral (0) aa- Comparable ratings analysis: Negative (-1 notch)
2

Adolf Wuerth GmbH & Co. KG

Germany A Stable a Strong Modest Strong (0) Neutral (0) a
3

Anhui Conch Cement Co. Ltd.

China A Stable a Satisfactory Minimal Exceptional (0) Neutral (0) a
4

Legrand S.A.

France A- Stable a- Strong Intermediate Strong (0) Positive (1) bbb+ Financial Policy: Positive (+1 notch)
5

Guardian Industries Resources LLC

U.S. A- Stable bbb+ Satisfactory Modest Exceptional (0) Neutral (0) bbb+
6

Beijing New Building Materials Public Ltd. Co.

China A- Stable bbb+ Fair Minimal Adequate (0) Neutral (0) bbb Comparable ratings analysis: Positive (+1 notch)
7

Stanley Black & Decker Inc.

U.S. A- Negative a- Strong Intermediate Strong (0) Neutral (0) a-
8

Compagnie de Saint-Gobain

France BBB+ Stable bbb+ Strong Intermediate Strong (0) Negative (-1) a- Financial Policy: Negative (-1 notch)
9

CRH plc

Ireland BBB+ Stable bbb+ Strong Intermediate Strong (0) Neutral (0) bbb+
10

Holcim Ltd

Switzerland BBB+ Stable bbb+ Strong Intermediate Strong (0) Neutral (0) bbb+
11

Martin Marietta Materials Inc.

U.S. BBB+ Stable bbb+ Strong Intermediate Strong (0) Neutral (0) bbb+
12

Vulcan Materials Co.

U.S. BBB+ Stable bbb+ Strong Intermediate Strong (0) Neutral (0) bbb+
13

CSR Ltd.

Australia BBB+ Stable bbb+ Satisfactory Minimal Strong (0) Negative (-2) a Financial Policy: Negative (-2 notch)
14

Ferguson plc

U.K. BBB+ Stable bbb+ Satisfactory Modest Strong (0) Neutral (0) bbb+
15

Mohawk Industries Inc.

U.S. BBB+ Stable bbb+ Satisfactory Modest Strong (0) Neutral (0) bbb+
16

Valmont Industries Inc.

U.S. BBB+ Stable bbb+ Satisfactory Modest Strong (0) Neutral (0) bbb+
17

Carrier Global Corp.

U.S. BBB Positive bbb Strong Intermediate Strong (0) Neutral (0) bbb+ Comparable ratings analysis: Negative (-1 notch)
18

Allegion PLC

Ireland BBB Stable bbb Strong Intermediate Exceptional (0) Neutral (0) bbb+ Comparable ratings analysis: Negative (-1 notch)
19

Heidelberg Materials AG

Germany BBB Stable bbb Strong Significant Strong (0) Neutral (0) bbb
20

Buzzi SpA

Italy BBB Stable bbb Satisfactory Minimal Strong (0) Negative (-1) a- Comparable ratings analysis: Negative (-1 notch); Financial Policy: Negative (-1 notch)
21

Masco Corp.

U.S. BBB Stable bbb Satisfactory Intermediate Exceptional (0) Neutral (0) bbb
22

Eagle Materials Inc.

U.S. BBB Stable bbb Satisfactory Intermediate Strong (0) Neutral (0) bbb
23

Fortune Brands Innovations, Inc.

U.S. BBB Stable bbb Satisfactory Intermediate Strong (0) Neutral (0) bbb
24

Lennox International Inc.

U.S. BBB Stable bbb Satisfactory Intermediate Strong (0) Neutral (0) bbb
25

Owens Corning

U.S. BBB Stable bbb Satisfactory Intermediate Strong (0) Neutral (0) bbb
26

Votorantim Cimentos S.A.

Brazil BBB Stable bbb- Satisfactory Intermediate Strong (0) Neutral (0) bbb-
27

Cementir Holding N.V.

Netherlands BBB- Stable bbb- Fair Minimal Adequate (0) Neutral (0) bbb-
28

GCC S.A.B. de C.V.

Mexico BBB- Stable bbb- Fair Modest Strong (0) Neutral (0) bbb-
29

CEMEX S.A.B. de C.V.

Mexico BB+ Positive bb+ Satisfactory Significant Strong (0) Neutral (0) bbb- Comparable ratings analysis: Negative (-1 notch)
30

James Hardie International Group Ltd.

Ireland BB+ Stable bb+ Fair Intermediate Adequate (0) Neutral (0) bb+
31

Masonite International Corp.

Canada BB+ Stable bb+ Fair Intermediate Adequate (0) Neutral (0) bb+
32

Rexel S.A.

France BB+ Stable bb+ Satisfactory Significant Strong (0) Neutral (0) bb+
33

Standard Building Solutions Inc.

U.S. BB+ Stable bb+ Satisfactory Aggressive Strong (0) Neutral (0) bb Comparable ratings analysis: Positive (+1 notch)
34

Summit Materials LLC

U.S. BB+ Stable bb+ Satisfactory Aggressive Strong (0) Neutral (0) bb Comparable ratings analysis: Positive (+1 notch)
35

KCC Corp.

Korea, Republic of BB+ Stable bb+ Satisfactory Aggressive Adequate (0) Neutral (0) bb Comparable ratings analysis: Positive (+1 notch)
36

Builders FirstSource Inc.

U.S. BB Positive bb Fair Intermediate Strong (0) Neutral (0) bb+ Comparable ratings analysis: Negative (-1 notch)
37

American Builders & Contractors Supply Co. Inc.

U.S. BB Positive bb Satisfactory Significant Strong (0) Neutral (0) bb+ Comparable ratings analysis: Negative (-1 notch)
38

Titan Cement International

Belgium BB Positive bb Fair Significant Adequate (0) Neutral (0) bb
39

Advanced Drainage Systems Inc.

U.S. BB Stable bb Fair Intermediate Adequate (0) Neutral (0) bb+ Comparable ratings analysis: Negative (-1 notch)
40

Zurn Elkay Water Solutions Corp.

U.S. BB Stable bb Fair Intermediate Adequate (0) Neutral (0) bb+ Comparable ratings analysis: Negative (-1 notch)
41

UNACEM Corp. S.A.A.

Peru BB Stable bb Fair Intermediate Less than adequate (-1) Neutral (0) bb+
42

Arcosa Inc.

U.S. BB Stable bb Weak Intermediate Adequate (0) Neutral (0) bb
43

Knife River Corporation

U.S. BB Stable bb Fair Significant Adequate (0) Neutral (0) bb
44

SiteOne Landscape Supply Inc.

U.S. BB Stable bb Fair Significant Adequate (0) Neutral (0) bb
45

84 Lumber Co.

U.S. BB- Positive bb- Weak Intermediate Adequate (0) Neutral (0) bb Comparable ratings analysis: Negative (-1 notch)
46

Core & Main L.P.

U.S. BB- Positive bb- Fair Significant Adequate (0) Neutral (0) bb Comparable ratings analysis: Negative (-1 notch)
47

Interface Inc.

U.S. BB- Stable bb- Fair Significant Adequate (0) Neutral (0) bb Comparable ratings analysis: Negative (-1 notch)
48

Tamko Building Products LLC

U.S. BB- Stable bb- Fair Significant Adequate (0) Negative (-1) bb Financial Policy: Negative (-1 notch)
49

GMS Inc.

U.S. BB- Stable bb- Weak Significant Strong (0) Neutral (0) bb-
50

CPG International LLC d/b/a/ The Azek Co.

U.S. BB- Stable bb- Weak Significant Adequate (0) Neutral (0) bb-
51

Beacon Roofing Supply Inc.

U.S. BB- Stable bb- Fair Aggressive Strong (0) Neutral (0) bb-
52

Jeld-Wen Inc.

U.S. BB- Stable bb- Fair Aggressive Strong (0) Neutral (0) bb-
53

Quikrete Holdings Inc.

U.S. BB- Stable bb- Fair Aggressive Strong (0) Neutral (0) bb-
54

Smyrna Ready Mix Concrete

U.S. BB- Stable bb- Fair Aggressive Adequate (0) Neutral (0) bb-
55

PGT Innovations Inc.

U.S. B+ WatchPos b+ Weak Significant Strong (0) Neutral (0) bb- Comparable ratings analysis: Negative (-1 notch)
56

MI Windows and Doors LLC

U.S. B+ WatchPos b+ Fair Highly leveraged Adequate (0) Neutral (0) b Comparable ratings analysis: Positive (+1 notch)
57

Tarkett Participation

France B+ Stable b+ Fair Aggressive Strong (0) Neutral (0) bb- Comparable ratings analysis: Negative (-1 notch)
58

BlueLinx Holdings Inc.

U.S. B+ Stable b+ Weak Aggressive Adequate (0) Neutral (0) b+
59

SIG plc

U.K. B+ Stable b+ Weak Aggressive Adequate (0) Neutral (0) b+
60

Griffon Corp.

U.S. B+ Stable b+ Fair Highly leveraged Adequate (0) Neutral (0) b Comparable ratings analysis: Positive (+1 notch)
61

Quimper AB

Sweden B+ Stable b+ Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Positive (+1 notch)
62

Wilsonart LLC

U.S. B+ Stable b+ Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Positive (+1 notch)
63

Janus International Group LLC

U.S. B Positive b Fair Highly leveraged Adequate (0) Neutral (0) b
64

AmeriTex Holdco Intermediate, LLC

U.S. B Stable b Weak Aggressive Adequate (0) Neutral (0) b+ Comparable ratings analysis: Negative (-1 notch)
65

BME Group Holding B.V.

Netherlands B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
66

Brookfield Slate Holdings III Ltd.

Spain B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
67

Cornerstone Building Brands Inc.

U.S. B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
68

Enstall Group B.V.

Netherlands B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
69

Hestiafloor 2

France B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
70

Infinity Bidco 1 Ltd.

U.K. B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
71

LSF10 Edilians Investments S.a.r.l.

France B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
72

Oscar AcquisitionCo LLC

U.S. B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
73

Stellagroup

France B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
74

Chamberlain Group LLC (The)

U.S. B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
75

White Cap Supply Holdings LLC

U.S. B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
76

Winterfell Financing S.a.r.l.

Denmark B Stable b Fair Highly leveraged Adequate (0) FS-6 (0) b
77

AHF Parent Holding Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
78

ARC Falcon I Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
79

Eco Material Technologies Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
80

Foley Products Co. LLC

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
81

Foundation Building Materials Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
82

GEO Group Inc. (The)

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
83

Groupe Solmax Inc.

Canada B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
84

HT TROPLAST GmbH

Germany B Stable b Weak Highly leveraged Adequate (0) Neutral (0) b
85

Kodiak Building Partners Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
86

Mannington Mills Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) Neutral (0) b
87

New AMI I LLC

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
88

New Enterprise Stone & Lime Co. Inc.

U.S. B Stable b Weak Highly leveraged Adequate (0) Neutral (0) b
89

Specialty Building Products Holdings LLC

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
90

Cook & Boardman Group LLC (The)

U.S. B Stable b Weak Highly leveraged Adequate (0) FS-6 (0) b
91

Aquiles Spain Bidco S.A.

Spain B Negative b Fair Highly leveraged Adequate (0) FS-6 (0) b
92

CP Atlas Buyer Inc.

U.S. B- Stable b- Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Negative (-1 notch)
93

LSF10 XL Investments S.a.r.l.

Luxembourg B- Stable b- Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Negative (-1 notch)
94

Neptune Holdco S.a.r.l.

Luxembourg B- Stable b- Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Negative (-1 notch)
95

Park River Holdings Inc.

U.S. B- Stable b- Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Negative (-1 notch)
96

SRS Distribution Inc.

U.S. B- Stable b- Fair Highly leveraged Adequate (0) FS-6 (0) b Comparable ratings analysis: Negative (-1 notch)
97

DiversiTech Holdings Inc.

U.S. B- Stable b- Weak Highly leveraged Adequate (0) FS-6 (0) b-
98

IPS Corp.

U.S. B- Stable b- Weak Highly leveraged Adequate (0) FS-6 (0) b-
99

LBM Acquisition LLC

U.S. B- Stable b- Weak Highly leveraged Adequate (0) FS-6 (0) b-
100

Patagonia Holdco 3 Ltd.

U.K. B- Stable b- Weak Highly leveraged Adequate (0) FS-6 (0) b-
101

Sabre Industries Inc.

U.S. B- Stable b- Weak Highly leveraged Adequate (0) FS-6 (0) b-
102

Werner FinCo L.P.

U.S. B- Negative b- Weak Highly leveraged Adequate (0) FS-6 (0) b-
103

ACProducts Inc.

U.S. CCC+ Negative N.A. N.A. N.A. N.A. FS-6 (0) N.A.
104

Apex Tool Group LLC

U.S. CCC+ Negative N.A. N.A. N.A. N.A. FS-6 (0) N.A.
105

Compact Bidco B.V.

Netherlands CCC+ Negative N.A. N.A. N.A. N.A. FS-6 (0) N.A.
106

Plaskolite PPC Intermediate II LLC

U.S. CCC+ Negative N.A. N.A. N.A. N.A. FS-6 (0) N.A.
107

Ideal Standard International S.A.

Luxembourg CCC Developing N.A. N.A. N.A. N.A. FS-6 (0) N.A.
N.A.--Not applicable. Source: S&P Global Ratings.

The table and charts in this publication provide an overview of the 107 entities we rate in the building material industry. We rate 28 entities as investment-grade ('BBB-' and above) and 79 entities as speculative-grade ('BB+' and below).

About 74% of building material companies carry ratings below 'BBB-'. Financial sponsors own about 53% of these companies, and they carry comparatively higher financial risk.

Chart 1

image

Chart 2

image

About 82% of rating outlooks are stable indicating decent rating headroom, built over last couple of years, and balance capital allocation. Seven percent of rating outlooks are negative, which reflects the effect of high debt service cost on cash flows and the pressure on margins from subdued demand.

Chart 3

image

Chart 4

image

Our business risk profile assessments typically mirror our view of the competitive position in this sector (see chart 5).

Chart 5

image

The most common financial risk profile assessments in this sector are highly leveraged (see chart 6).

The highly leveraged assessments typically reflect companies with stretched balance sheets and sponsor-backed holding company loans. About 39% of issuers have financial sponsor ownership (see chart 7). Highly leveraged assessed companies are rated B+ or lower.

Chart 6

image

Chart 7

image

Roughly 30% of the ratings incorporate one or more modifiers. This is often the comparative rating analysis that we use for credit considerations that we have not factored into the ratings. In the remaining cases our assessment of a company's financial policy refines the view of a company's risks beyond the conclusions arising from the standard assumptions in the cash flow/leverage assessment. This could, for example, capture the risks related to a company's appetite for a large-scale debt-financed merger and acquisition, or shareholder distributions that cannot be confidently predicted regarding amount and timing.

Most of our rated building material issuers have liquidity that is adequate or better (see chart 8). This reflects the sector's good access to debt markets. Typically, the amount of cash that building material companies hold, combined with their cash generation and liquidity resources, covers the uses of cash that they have committed over the next 12 months by 1.2x or more.

Chart 8

image

The ratings and scores in this document are as of Jan. 30, 2024.

Related Criteria

Related Research

This report does not constitute a rating action.

Primary Credit Analyst:Renato Panichi, Milan + 39 0272111215;
renato.panichi@spglobal.com
Secondary Contact:Pascal Seguier, Paris + 33 1 40 75 25 89;
pascal.seguier@spglobal.com
Research Contributors:Kiran Toshniwal, CRISIL Global Analytical Center, an S&P affiliate, Mumbai
Varun Kumar, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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