TOPBUILD CORP (BLD) Stock Fundamental Analysis
NYSE:BLD - New York Stock Exchange, Inc. - US89055F1030 - Common Stock - Currency: USD
Taking everything into account, BLD scores 6 out of 10 in our fundamental rating. BLD was compared to 66 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. With these ratings, BLD could be worth investigating further for quality investing!.
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.
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 13.15%. This is amongst the best in the industry. BLD outperforms 90.77% of its industry peers.
BLD's Return On Equity of 28.18% is amongst the best of the industry. BLD outperforms 89.23% of its industry peers.
BLD has a better Return On Invested Capital (17.10%) than 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BLD is above the industry average of 12.03%.
The 3 year average ROIC (15.92%) for BLD is below the current ROIC(17.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.15% | ||
| ROE | 28.18% | ||
| ROIC | 17.1% |
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
BLD's Profit Margin of 11.68% is amongst the best of the industry. BLD outperforms 84.62% of its industry peers.
BLD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.16%, BLD belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
BLD's Operating Margin has improved in the last couple of years.
BLD's Gross Margin of 30.49% is fine compared to the rest of the industry. BLD outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of BLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 11.68% | ||
| GM | 30.49% |
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
BLD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BLD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BLD has been reduced compared to 5 years ago.
BLD has a worse debt/assets ratio than last year.
2.2 Solvency
BLD has an Altman-Z score of 4.93. This indicates that BLD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.93, BLD is doing good in the industry, outperforming 78.46% of the companies in the same industry.
BLD has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
The Debt to FCF ratio of BLD (1.95) is better than 70.77% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that BLD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, BLD is doing worse than 69.23% of the companies in the same industry.
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 | 0.6 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.96
WACC8.74%
2.3 Liquidity
BLD has a Current Ratio of 2.08. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.08, BLD is in line with its industry, outperforming 44.62% of the companies in the same industry.
BLD has a Quick Ratio of 1.55. This is a normal value and indicates that BLD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.55, BLD is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.64% over the past year.
BLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.78% yearly.
The Revenue has been growing slightly by 2.60% in the past year.
The Revenue has been growing by 15.22% on average over the past years. This is quite good.
EPS 1Y (TTM)6.64%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%9.38%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%2.03%
3.2 Future
Based on estimates for the next years, BLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% on average per year.
Based on estimates for the next years, BLD will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y7.55%
EPS Next 2Y9.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.49%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 14.03, which indicates a correct valuation of BLD.
The rest of the industry has a similar Price/Earnings ratio as BLD.
Compared to an average S&P500 Price/Earnings ratio of 29.75, BLD is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.04, BLD is valued correctly.
BLD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BLD to the average of the S&P500 Index (22.44), we can say BLD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.04 |
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 a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.32 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BLD does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BLD may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)0.46
EPS Next 2Y9.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for BLD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
295.17
-0.95 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.33%
Inst Owner Change-0.53%
Ins Owners0.44%
Ins Owner Change7.71%
Market Cap8.71B
Analysts78.67
Price Target400.12 (35.56%)
Short Float %2.74%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)0.45%
Min EPS beat(2)0.28%
Max EPS beat(2)0.62%
EPS beat(4)3
Avg EPS beat(4)-0.09%
Min EPS beat(4)-5.6%
Max EPS beat(4)4.33%
EPS beat(8)7
Avg EPS beat(8)5.62%
EPS beat(12)11
Avg EPS beat(12)9.54%
EPS beat(16)14
Avg EPS beat(16)8.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-1.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)6
Avg Revenue beat(12)1.4%
Revenue beat(16)8
Avg Revenue beat(16)0.93%
PT rev (1m)-1.71%
PT rev (3m)-4.66%
EPS NQ rev (1m)-1.74%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.63 | ||
| P/FCF | 12.32 | ||
| P/OCF | 11.22 | ||
| P/B | 3.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)21.04
EY7.13%
EPS(NY)22.63
Fwd EY7.67%
FCF(TTM)23.96
FCFY8.12%
OCF(TTM)26.31
OCFY8.91%
SpS180.67
BVpS74.9
TBVpS-15.6
PEG (NY)1.86
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.15% | ||
| ROE | 28.18% | ||
| ROCE | 23.04% | ||
| ROIC | 17.1% | ||
| ROICexc | 19.02% | ||
| ROICexgc | 75.58% | ||
| OM | 17.16% | ||
| PM (TTM) | 11.68% | ||
| GM | 30.49% | ||
| FCFM | 13.26% |
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 Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 49.36% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 13.07 | ||
| Cash Conversion | 73.57% | ||
| Profit Quality | 113.5% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 4.93 |
F-Score6
WACC8.74%
ROIC/WACC1.96
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)6.64%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%9.38%
EPS Next Y7.55%
EPS Next 2Y9.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%2.03%
Revenue Next Year2.49%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.16%
EBIT growth 3Y22.97%
EBIT growth 5Y25.86%
EBIT Next Year21.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.02%
FCF growth 3Y26.69%
FCF growth 5Y25.58%
OCF growth 1Y-8.64%
OCF growth 3Y24.41%
OCF growth 5Y23.35%