Is INSTALLED BUILDING PRODUCTS (NYSE:IBP) 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 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.

Some of the quality metrics of NYSE:IBP highlighted

• INSTALLED BUILDING PRODUCTS has demonstrated significant revenue growth over the past 5 years, with a 15.77% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 46.51%, INSTALLED BUILDING PRODUCTS 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.
• INSTALLED BUILDING PRODUCTS maintains a healthy Debt/Free Cash Flow Ratio of 3.13, 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.
• 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.
• With a robust 5-year EBIT growth of 31.07%, INSTALLED BUILDING PRODUCTS showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of INSTALLED BUILDING PRODUCTS 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.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall IBP gets a fundamental rating of 6 out of 10. We evaluated IBP against 67 industry peers in the Household Durables industry. IBP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IBP is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, IBP could be worth investigating further for quality investing!.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.