Why Quality-Oriented Investors Should Consider NYSE:BLD.

In this article we will dive into TOPBUILD CORP (NYSE:BLD) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TOPBUILD CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• Over the past 5 years, TOPBUILD CORP has experienced impressive revenue growth, with 21.31% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 66.44%, TOPBUILD CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• TOPBUILD CORP maintains a healthy Debt/Free Cash Flow Ratio of 2.11, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 103.0%, TOPBUILD CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• TOPBUILD CORP has experienced impressive EBIT growth over the past 5 years, with 36.76% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• TOPBUILD CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall BLD gets a fundamental rating of 6 out of 10. We evaluated BLD against 68 industry peers in the Household Durables industry. BLD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BLD has a decent growth rate and is not valued too expensively. With these ratings, BLD could be worth investigating further for quality investing!.

Our latest full fundamental report of BLD contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.