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Why Quality Investors Should Delve into INSTALLED BUILDING PRODUCTS (NYSE:IBP) for Investment Opportunities.

By Mill Chart

Last update: Nov 21, 2023

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

Why NYSE:IBP may be interesting for quality investors.

  • INSTALLED BUILDING PRODUCTS has achieved substantial revenue growth over the past 5 years, with a 18.7% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • INSTALLED BUILDING PRODUCTS exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 45.89% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • INSTALLED BUILDING PRODUCTS demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.21, 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.
  • The Profit Quality (5-year) of INSTALLED BUILDING PRODUCTS stands at 112.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • INSTALLED BUILDING PRODUCTS has experienced impressive EBIT growth over the past 5 years, with 34.93% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, INSTALLED BUILDING PRODUCTS showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:IBP

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall IBP gets a fundamental rating of 7 out of 10. We evaluated IBP against 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making IBP a very profitable company, without any liquidiy or solvency issues. IBP has a correct valuation and a medium growth rate. These ratings could make IBP a good candidate for quality investing.

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

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

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.

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