TOPBUILD CORP (BLD) Stock Fundamental Analysis
USA - NYSE:BLD - US89055F1030 - Common Stock
412.26 USD
-2.06 (-0.5%)
412.26 USD
0 (0%)
Taking everything into account, BLD scores 6 out of 10 in our fundamental rating. BLD was compared to 63 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making BLD a very profitable company, without any liquidiy or solvency issues. BLD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BLD had positive earnings in the past year.
BLD had a positive operating cash flow in the past year.
BLD had positive earnings in each of the past 5 years.
BLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BLD has a Return On Assets of 11.61%. This is amongst the best in the industry. BLD outperforms 90.48% of its industry peers.
With an excellent Return On Equity value of 27.73%, BLD belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
The Return On Invested Capital of BLD (14.80%) is better than 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BLD is significantly above the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.61% | ||
| ROE | 27.73% | ||
| ROIC | 14.8% |
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
Looking at the Profit Margin, with a value of 11.40%, BLD belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
BLD's Profit Margin has improved in the last couple of years.
BLD's Operating Margin of 16.84% is amongst the best of the industry. BLD outperforms 92.06% of its industry peers.
In the last couple of years the Operating Margin of BLD has grown nicely.
BLD's Gross Margin of 30.17% is fine compared to the rest of the industry. BLD outperforms 61.90% of its industry peers.
In the last couple of years the Gross Margin of BLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 11.4% | ||
| GM | 30.17% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BLD is creating value.
Compared to 1 year ago, BLD has less shares outstanding
Compared to 5 years ago, BLD has less shares outstanding
Compared to 1 year ago, BLD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.12 indicates that BLD is not in any danger for bankruptcy at the moment.
The Altman-Z score of BLD (5.12) is better than 80.95% of its industry peers.
The Debt to FCF ratio of BLD is 2.37, which is a good value as it means it would take BLD, 2.37 years of fcf income to pay off all of its debts.
BLD has a Debt to FCF ratio of 2.37. This is in the better half of the industry: BLD outperforms 76.19% of its industry peers.
BLD has a Debt/Equity ratio of 0.86. This is a neutral value indicating BLD is somewhat dependend on debt financing.
BLD has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: BLD underperforms 68.25% of its industry peers.
Although BLD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.69
WACC8.75%
2.3 Liquidity
BLD has a Current Ratio of 2.83. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
BLD has a Current ratio of 2.83. This is comparable to the rest of the industry: BLD outperforms 58.73% of its industry peers.
BLD has a Quick Ratio of 2.29. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.29, BLD belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
BLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.97%.
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.
BLD shows a decrease in Revenue. In the last year, the revenue decreased by -0.77%.
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)1.97%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-2.03%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-4.99%
3.2 Future
Based on estimates for the next years, BLD will show a small growth in Earnings Per Share. The EPS will grow by 6.18% on average per year.
The Revenue is expected to grow by 0.52% on average over the next years.
EPS Next Y-3.05%
EPS Next 2Y2.47%
EPS Next 3Y6.18%
EPS Next 5YN/A
Revenue Next Year-1.6%
Revenue Next 2Y1.81%
Revenue Next 3Y0.52%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.87, BLD is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as BLD.
BLD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.66 indicates a rather expensive valuation of BLD.
The rest of the industry has a similar Price/Forward Earnings ratio as BLD.
The average S&P500 Price/Forward Earnings ratio is at 22.70. BLD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
BLD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, BLD is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.59 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
The excellent profitability rating of BLD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y2.47%
EPS Next 3Y6.18%
5. Dividend
5.1 Amount
BLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
412.26
-2.06 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners102.72%
Inst Owner Change1.86%
Ins Owners0.51%
Ins Owner Change-3.28%
Market Cap11.60B
Analysts80
Price Target449.92 (9.14%)
Short Float %4.59%
Short Ratio3.24
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)3.49%
Min EPS beat(2)3.24%
Max EPS beat(2)3.75%
EPS beat(4)4
Avg EPS beat(4)1.97%
Min EPS beat(4)0.28%
Max EPS beat(4)3.75%
EPS beat(8)7
Avg EPS beat(8)3.08%
EPS beat(12)11
Avg EPS beat(12)6.5%
EPS beat(16)14
Avg EPS beat(16)7.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-1.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.02%
Revenue beat(16)7
Avg Revenue beat(16)0.72%
PT rev (1m)14.57%
PT rev (3m)25.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)3.73%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 18.66 | ||
| P/S | 2.22 | ||
| P/FCF | 14.59 | ||
| P/OCF | 13.6 | ||
| P/B | 5.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.38 |
EPS(TTM)20.75
EY5.03%
EPS(NY)22.09
Fwd EY5.36%
FCF(TTM)28.25
FCFY6.85%
OCF(TTM)30.32
OCFY7.35%
SpS185.36
BVpS76.19
TBVpS-18.24
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.61% | ||
| ROE | 27.73% | ||
| ROCE | 19.94% | ||
| ROIC | 14.8% | ||
| ROICexc | 18.3% | ||
| ROICexgc | 71.99% | ||
| OM | 16.84% | ||
| PM (TTM) | 11.4% | ||
| GM | 30.17% | ||
| FCFM | 15.24% |
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-Score5
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 40.8% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.54% | ||
| Profit Quality | 133.71% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 5.12 |
F-Score5
WACC8.75%
ROIC/WACC1.69
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)1.97%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-2.03%
EPS Next Y-3.05%
EPS Next 2Y2.47%
EPS Next 3Y6.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-4.99%
Revenue Next Year-1.6%
Revenue Next 2Y1.81%
Revenue Next 3Y0.52%
Revenue Next 5YN/A
EBIT growth 1Y-3.19%
EBIT growth 3Y22.97%
EBIT growth 5Y25.86%
EBIT Next Year9.85%
EBIT Next 3Y5.1%
EBIT Next 5YN/A
FCF growth 1Y34.09%
FCF growth 3Y26.69%
FCF growth 5Y25.58%
OCF growth 1Y28.51%
OCF growth 3Y24.41%
OCF growth 5Y23.35%