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Why the quality investor may take a look at INSTALLED BUILDING PRODUCTS (NYSE:IBP).

By Mill Chart

Last update: Dec 26, 2023

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 INSTALLED BUILDING PRODUCTS (NYSE:IBP) is suited for quality investing. Investors should of course do their own research, but we spotted INSTALLED BUILDING PRODUCTS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:IBP Holds Appeal for Quality Investors.

  • INSTALLED BUILDING PRODUCTS has shown strong performance in revenue growth over the past 5 years, with a 18.7% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • INSTALLED BUILDING PRODUCTS demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 45.89% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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.
  • INSTALLED BUILDING PRODUCTS demonstrates consistent Profit Quality over the past 5 years, with a strong 112.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • 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.
  • INSTALLED BUILDING PRODUCTS 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.

How does the complete fundamental picture look for 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.

We assign a fundamental rating of 7 out of 10 to IBP. IBP was compared to 70 industry peers in the Household Durables industry. IBP gets an excellent profitability rating and is at the same time showing great financial health properties. IBP is quite expensive at the moment. It does show a decent growth rate. These ratings could make IBP a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of IBP

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.

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