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

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 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.
• The ROIC excluding cash and goodwill of INSTALLED BUILDING PRODUCTS stands at 45.4%, 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.
• With a Debt/Free Cash Flow Ratio of 3.05, INSTALLED BUILDING PRODUCTS exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• 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 31.07% 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.

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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall IBP gets a fundamental rating of 7 out of 10. We evaluated IBP against 64 industry peers in the Household Durables industry. IBP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IBP is valied quite expensively at the moment, while it does show a decent growth rate. This makes IBP very considerable for quality investing!

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.