TOPBUILD CORP (BLD) Stock Fundamental Analysis
NYSE:BLD - New York Stock Exchange, Inc. - US89055F1030 - Common Stock - Currency: USD
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLD was profitable.
In the past year BLD had a positive cash flow from operations.
In the past 5 years BLD has always been profitable.
Each year in the past 5 years BLD had a positive operating cash flow.
1.2 Ratios
BLD has a Return On Assets of 12.91%. This is amongst the best in the industry. BLD outperforms 92.19% of its industry peers.
BLD has a better Return On Equity (28.05%) than 95.31% of its industry peers.
BLD has a Return On Invested Capital of 17.17%. This is amongst the best in the industry. BLD outperforms 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLD is significantly above the industry average of 10.34%.
The last Return On Invested Capital (17.17%) for BLD is above the 3 year average (15.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 28.05% | ||
| ROIC | 17.17% |
ROA(3y)12.37%
ROA(5y)10.7%
ROE(3y)26.98%
ROE(5y)23.81%
ROIC(3y)15.92%
ROIC(5y)13.9%
1.3 Margins
With an excellent Profit Margin value of 11.23%, BLD belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
BLD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.89%, BLD belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
BLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.33%, BLD is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of BLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.89% | ||
| PM (TTM) | 11.23% | ||
| GM | 30.33% |
OM growth 3Y6.74%
OM growth 5Y9.23%
PM growth 3Y7.92%
PM growth 5Y9.92%
GM growth 3Y2.94%
GM growth 5Y3.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BLD is still creating some value.
Compared to 1 year ago, BLD has less shares outstanding
BLD has less shares outstanding than it did 5 years ago.
BLD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.32 indicates that BLD is not in any danger for bankruptcy at the moment.
BLD has a Altman-Z score of 5.32. This is amongst the best in the industry. BLD outperforms 81.25% of its industry peers.
BLD has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
BLD has a better Debt to FCF ratio (1.99) than 76.56% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that BLD is somewhat dependend on debt financing.
BLD's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. BLD is outperformed by 67.19% of its industry peers.
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 | 0.62 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 5.32 |
ROIC/WACC1.75
WACC9.84%
2.3 Liquidity
BLD has a Current Ratio of 2.02. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BLD (2.02) is comparable to the rest of the industry.
A Quick Ratio of 1.47 indicates that BLD should not have too much problems paying its short term obligations.
BLD has a better Quick ratio (1.47) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
BLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.37%.
Measured over the past years, BLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.78% on average per year.
The Revenue has been growing slightly by 1.46% in the past year.
BLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.22% yearly.
EPS 1Y (TTM)3.37%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-3.74%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-3.55%
3.2 Future
The Earnings Per Share is expected to grow by 5.81% on average over the next years.
Based on estimates for the next years, BLD will show a small growth in Revenue. The Revenue will grow by 1.19% on average per year.
EPS Next Y-3.47%
EPS Next 2Y2.26%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue Next Year-3.42%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 16.66 indicates a correct valuation of BLD.
BLD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. BLD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.80, BLD is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLD is on the same level as its industry peers.
BLD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
BLD's Enterprise Value to EBITDA is on the same level as the industry average.
78.13% of the companies in the same industry are more expensive than BLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
BLD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y2.26%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
No dividends for BLD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
347.63
+2.46 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.59%
Inst Owner Change1.39%
Ins Owners0.51%
Ins Owner Change7.66%
Market Cap9.94B
Analysts77.5
Price Target357.31 (2.78%)
Short Float %4.78%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.18%
Min EPS beat(2)0.62%
Max EPS beat(2)3.75%
EPS beat(4)3
Avg EPS beat(4)-0.24%
Min EPS beat(4)-5.6%
Max EPS beat(4)3.75%
EPS beat(8)7
Avg EPS beat(8)5.13%
EPS beat(12)11
Avg EPS beat(12)7.72%
EPS beat(16)14
Avg EPS beat(16)8.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.86%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)0.92%
PT rev (1m)-5.18%
PT rev (3m)-10.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 15.8 | ||
| P/S | 1.88 | ||
| P/FCF | 14.47 | ||
| P/OCF | 13.25 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.56 |
EPS(TTM)20.86
EY6%
EPS(NY)22
Fwd EY6.33%
FCF(TTM)24.03
FCFY6.91%
OCF(TTM)26.23
OCFY7.54%
SpS184.83
BVpS74.01
TBVpS-18.78
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 28.05% | ||
| ROCE | 23.14% | ||
| ROIC | 17.17% | ||
| ROICexc | 18.67% | ||
| ROICexgc | 73.94% | ||
| OM | 16.89% | ||
| PM (TTM) | 11.23% | ||
| GM | 30.33% | ||
| FCFM | 13% |
ROA(3y)12.37%
ROA(5y)10.7%
ROE(3y)26.98%
ROE(5y)23.81%
ROIC(3y)15.92%
ROIC(5y)13.9%
ROICexc(3y)18.11%
ROICexc(5y)15.68%
ROICexgc(3y)69.41%
ROICexgc(5y)65%
ROCE(3y)21.45%
ROCE(5y)18.73%
ROICexcg growth 3Y15.87%
ROICexcg growth 5Y6.71%
ROICexc growth 3Y20.83%
ROICexc growth 5Y11.45%
OM growth 3Y6.74%
OM growth 5Y9.23%
PM growth 3Y7.92%
PM growth 5Y9.92%
GM growth 3Y2.94%
GM growth 5Y3.26%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 44.26% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.48% | ||
| Profit Quality | 115.73% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 5.32 |
F-Score6
WACC9.84%
ROIC/WACC1.75
Cap/Depr(3y)53.16%
Cap/Depr(5y)58.99%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.43%
Profit Quality(3y)105.6%
Profit Quality(5y)110.48%
High Growth Momentum
Growth
EPS 1Y (TTM)3.37%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-3.74%
EPS Next Y-3.47%
EPS Next 2Y2.26%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-3.55%
Revenue Next Year-3.42%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.19%
Revenue Next 5YN/A
EBIT growth 1Y-1.8%
EBIT growth 3Y22.97%
EBIT growth 5Y25.86%
EBIT Next Year9.26%
EBIT Next 3Y6.88%
EBIT Next 5YN/A
FCF growth 1Y36.71%
FCF growth 3Y26.69%
FCF growth 5Y25.58%
OCF growth 1Y30.16%
OCF growth 3Y24.41%
OCF growth 5Y23.35%