Is TOPBUILD CORP (NYSE:BLD) suited for quality investing?

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.

• BLD has demonstrated significant revenue growth over the past 5 years, with a 15.22% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of BLD stands at 75.58%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of BLD stands at 1.95, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• BLD exhibits impressive Profit Quality (5-year) with a 110.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• BLD has consistently achieved strong EBIT growth over the past 5 years, with a 25.86% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• BLD has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

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

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall BLD gets a fundamental rating of 6 out of 10. We evaluated BLD against 64 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make BLD suitable for quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

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.