TOPBUILD CORP (BLD)
US89055F1030 - Common Stock
We assign a fundamental rating of 6 out of 10 to BLD. BLD was compared to 64 industry peers in the Household Durables industry. BLD gets an excellent profitability rating and is at the same time showing great financial health properties. BLD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BLD had positive earnings in the past year.
In the past year BLD had a positive cash flow from operations.
Each year in the past 5 years BLD has been profitable.
Each year in the past 5 years BLD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.30%, BLD belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.25%, BLD belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
BLD's Return On Invested Capital of 17.41% is amongst the best of the industry. BLD outperforms 91.94% of its industry peers.
BLD had an Average Return On Invested Capital over the past 3 years of 13.75%. This is above the industry average of 10.82%.
The 3 year average ROIC (13.75%) for BLD is below the current ROIC(17.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.3% | ||
| ROE | 29.25% | ||
| ROIC | 17.41% |
ROA(3y)10.53%
ROA(5y)9.54%
ROE(3y)24.19%
ROE(5y)21.49%
ROIC(3y)13.75%
ROIC(5y)12.57%
1.3 Margins
BLD's Profit Margin of 11.66% is amongst the best of the industry. BLD outperforms 83.87% of its industry peers.
In the last couple of years the Profit Margin of BLD has grown nicely.
Looking at the Operating Margin, with a value of 17.12%, BLD belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
BLD's Operating Margin has improved in the last couple of years.
BLD has a better Gross Margin (30.62%) than 62.90% of its industry peers.
In the last couple of years the Gross Margin of BLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.12% | ||
| PM (TTM) | 11.66% | ||
| GM | 30.62% |
OM growth 3Y9.58%
OM growth 5Y14.47%
PM growth 3Y9.17%
PM growth 5Y15.9%
GM growth 3Y3.98%
GM growth 5Y5.02%
2. Health
2.1 Basic Checks
BLD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BLD has more shares outstanding
Compared to 5 years ago, BLD has less shares outstanding
BLD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.29 indicates that BLD is not in any danger for bankruptcy at the moment.
BLD has a better Altman-Z score (5.29) than 79.03% of its industry peers.
The Debt to FCF ratio of BLD is 1.99, which is an excellent value as it means it would take BLD, only 1.99 years of fcf income to pay off all of its debts.
BLD has a Debt to FCF ratio of 1.99. This is in the better half of the industry: BLD outperforms 70.97% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that BLD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, BLD is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for BLD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 5.29 |
ROIC/WACC1.92
WACC9.07%
2.3 Liquidity
BLD has a Current Ratio of 2.01. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
BLD has a Current ratio of 2.01. This is comparable to the rest of the industry: BLD outperforms 41.94% of its industry peers.
A Quick Ratio of 1.49 indicates that BLD should not have too much problems paying its short term obligations.
BLD's Quick ratio of 1.49 is fine compared to the rest of the industry. BLD outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
BLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.97%.
BLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.33% yearly.
Looking at the last year, BLD shows a small growth in Revenue. The Revenue has grown by 2.52% in the last year.
Measured over the past years, BLD shows a quite strong growth in Revenue. The Revenue has been growing by 16.85% on average per year.
EPS 1Y (TTM)5.97%
EPS 3Y39.29%
EPS 5Y36.33%
EPS Q2Q%4.6%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y24.1%
Revenue growth 5Y16.85%
Sales Q2Q%3.56%
3.2 Future
BLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.45% yearly.
The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y7.48%
EPS Next 2Y7.26%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y3.23%
Revenue Next 3Y3.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.54, BLD is valued on the expensive side.
BLD's Price/Earnings is on the same level as the industry average.
BLD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.91, which indicates a correct valuation of BLD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLD is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.56. BLD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 15.91 |
4.2 Price Multiples
BLD's Enterprise Value to EBITDA ratio is in line with the industry average.
BLD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BLD is cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BLD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)0.48
EPS Next 2Y7.26%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
BLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TOPBUILD CORP
NYSE:BLD (11/21/2024, 4:15:00 PM)
After market: 361.25 0 (0%)361.25
+10.15 (+2.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 15.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.34
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.3% | ||
| ROE | 29.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.12% | ||
| PM (TTM) | 11.66% | ||
| GM | 30.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.97%
EPS 3Y39.29%
EPS 5Y
EPS Q2Q%
EPS Next Y7.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.52%
Revenue growth 3Y24.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y