Fairly strong company but is exposed to the cyclical nature of the building industry, particularly residential construction. This makes them suboptimal long-term holds as they tend to follow the ebbs and flows and struggle to put up long-term market matching or market beating returns.
In a post pandemic environment the company has thrived due to the ultra low rate environment and the demand for housing.
It is an interesting play on a rebound in housing activity due to declining rates. However I'd probably argue the company is fully valued here. As I mentioned, fundamentally strong. Very solid balance sheet, near 15% returns on invested capital, strong free cash flow generator. Pretty solid operating margins. Just at the mercy of things it cannot control, that being overall demand.
If you believe housing starts will ramp up, this one would certainly benefit.