Is NYSE:BLD suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TOPBUILD CORP (NYSE:BLD) is suited for quality investing. Investors should of course do their own research, but we spotted TOPBUILD CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:BLD Holds Appeal for Quality Investors.

• TOPBUILD CORP has shown strong performance in revenue growth over the past 5 years, with a 16.85% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 73.24%, TOPBUILD CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• TOPBUILD CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.79, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 111.0%, TOPBUILD CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of TOPBUILD CORP has been remarkable, with 33.76% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of TOPBUILD CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NYSE:BLD?

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.

We assign a fundamental rating of 6 out of 10 to BLD. BLD was compared to 66 industry peers in the Household Durables industry. BLD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, BLD is valued expensive at the moment. With these ratings, BLD could be worth investigating further for quality investing!.

Check the latest full fundamental report of BLD for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.