TOPBUILD CORP (BLD)
US89055F1030 - Common Stock
Overall BLD gets a fundamental rating of 6 out of 10. We evaluated BLD against 66 industry peers in the Household Durables industry. BLD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BLD has a correct valuation and a medium growth rate. This makes BLD very considerable for quality investing!
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.
Each year in the past 5 years BLD has been profitable.
In the past 5 years BLD always reported a positive cash flow from operatings.
1.2 Ratios
BLD has a better Return On Assets (13.30%) than 92.19% of its industry peers.
With an excellent Return On Equity value of 29.25%, BLD belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
The Return On Invested Capital of BLD (17.41%) is better than 90.63% of its industry peers.
BLD had an Average Return On Invested Capital over the past 3 years of 13.75%. This is in line with the industry average of 12.01%.
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
With an excellent Profit Margin value of 11.66%, BLD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
BLD's Profit Margin has improved in the last couple of years.
BLD's Operating Margin of 17.12% is amongst the best of the industry. BLD outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of BLD has grown nicely.
BLD's Gross Margin of 30.62% is fine compared to the rest of the industry. BLD outperforms 62.50% of its industry peers.
BLD's Gross Margin has improved in the last couple of years.
| 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
The number of shares outstanding for BLD has been reduced compared to 5 years ago.
The debt/assets ratio for BLD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.02 indicates that BLD is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.02, BLD is doing good in the industry, outperforming 78.13% of the companies in the same industry.
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 better Debt to FCF ratio (1.99) than 73.44% 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: 65.63% of the companies in the same industry are doing better.
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 | 0.64 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 5.02 |
ROIC/WACC2.05
WACC8.5%
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 (2.01) which is in line with its industry peers.
BLD has a Quick Ratio of 1.49. This is a normal value and indicates that BLD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.49, BLD is doing good in the industry, outperforming 70.31% of the companies in the same industry.
| 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%.
Measured over the past years, BLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.33% on average per year.
The Revenue has been growing slightly by 2.52% in the past year.
The Revenue has been growing by 16.85% on average over the past years. This is quite good.
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
Based on estimates for the next years, BLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.47% on average per year.
Based on estimates for the next years, BLD will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
EPS Next Y6.96%
EPS Next 2Y7.34%
EPS Next 3Y8.47%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y2.65%
Revenue Next 3Y3.64%
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
The Price/Earnings ratio is 15.19, which indicates a correct valuation of BLD.
BLD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, BLD is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.77, which indicates a correct 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 23.99. BLD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLD is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BLD is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 9.88 |
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)2.18
PEG (5Y)0.42
EPS Next 2Y7.34%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
BLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TOPBUILD CORP
NYSE:BLD (12/26/2024, 3:16:41 PM)
312.985
+0.55 (+0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.35%
Inst Owner Change-0.91%
Ins Owners0.43%
Ins Owner Change0%
Market Cap9.23B
Analysts78.75
Price Target453.25 (44.82%)
Short Float %2.54%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.66%
Min EPS beat(2)-5.6%
Max EPS beat(2)0.28%
EPS beat(4)3
Avg EPS beat(4)-0.18%
Min EPS beat(4)-5.6%
Max EPS beat(4)4.33%
EPS beat(8)7
Avg EPS beat(8)6.71%
EPS beat(12)11
Avg EPS beat(12)9.96%
EPS beat(16)14
Avg EPS beat(16)8.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-2.54%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)7
Avg Revenue beat(12)1.72%
Revenue beat(16)9
Avg Revenue beat(16)1.02%
PT rev (1m)-2.57%
PT rev (3m)-1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.85%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.77 | ||
| P/S | 1.74 | ||
| P/FCF | 13.23 | ||
| P/OCF | 11.98 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.88 |
EPS(TTM)20.6
EY6.58%
EPS(NY)22.73
Fwd EY7.26%
FCF(TTM)23.66
FCFY7.56%
OCF(TTM)26.13
OCFY8.35%
SpS179.79
BVpS71.67
TBVpS-18.42
PEG (NY)2.18
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.3% | ||
| ROE | 29.25% | ||
| ROCE | 23.32% | ||
| ROIC | 17.41% | ||
| ROICexc | 18.64% | ||
| ROICexgc | 69.25% | ||
| OM | 17.12% | ||
| PM (TTM) | 11.66% | ||
| GM | 30.62% | ||
| FCFM | 13.16% |
ROA(3y)10.53%
ROA(5y)9.54%
ROE(3y)24.19%
ROE(5y)21.49%
ROIC(3y)13.75%
ROIC(5y)12.57%
ROICexc(3y)15.46%
ROICexc(5y)14.17%
ROICexgc(3y)60.76%
ROICexgc(5y)61.16%
ROCE(3y)18.42%
ROCE(5y)16.84%
ROICexcg growth 3Y2.34%
ROICexcg growth 5Y10.26%
ROICexc growth 3Y12.18%
ROICexc growth 5Y18.21%
OM growth 3Y9.58%
OM growth 5Y14.47%
PM growth 3Y9.17%
PM growth 5Y15.9%
GM growth 3Y3.98%
GM growth 5Y5.02%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 52.13% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.57% | ||
| Profit Quality | 112.87% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 5.02 |
F-Score6
WACC8.5%
ROIC/WACC2.05
Cap/Depr(3y)60.01%
Cap/Depr(5y)66.38%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.52%
Profit Quality(3y)103.52%
Profit Quality(5y)111.47%
High Growth Momentum
Growth
EPS 1Y (TTM)5.97%
EPS 3Y39.29%
EPS 5Y36.33%
EPS Q2Q%4.6%
EPS Next Y6.96%
EPS Next 2Y7.34%
EPS Next 3Y8.47%
EPS Next 5YN/A
Revenue 1Y (TTM)2.52%
Revenue growth 3Y24.1%
Revenue growth 5Y16.85%
Sales Q2Q%3.56%
Revenue Next Year2.57%
Revenue Next 2Y2.65%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y2.49%
EBIT growth 3Y35.99%
EBIT growth 5Y33.76%
EBIT Next Year19.41%
EBIT Next 3Y9.38%
EBIT Next 5YN/A
FCF growth 1Y93.95%
FCF growth 3Y35.32%
FCF growth 5Y46.93%
OCF growth 1Y79.61%
OCF growth 3Y33.39%
OCF growth 5Y38.41%