INSTALLED BUILDING PRODUCTS (IBP) Stock Fundamental Analysis
NYSE:IBP - New York Stock Exchange, Inc. - US45780R1014 - Common Stock - Currency: USD
Overall IBP gets a fundamental rating of 6 out of 10. We evaluated IBP against 66 industry peers in the Household Durables industry. IBP gets an excellent profitability rating and is at the same time showing great financial health properties. IBP has a correct valuation and a medium growth rate. These ratings would make IBP suitable for quality investing!
1. Profitability
1.1 Basic Checks
IBP had positive earnings in the past year.
In the past year IBP had a positive cash flow from operations.
IBP had positive earnings in each of the past 5 years.
Each year in the past 5 years IBP had a positive operating cash flow.
1.2 Ratios
IBP has a better Return On Assets (12.46%) than 89.39% of its industry peers.
With an excellent Return On Equity value of 36.38%, IBP belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
IBP has a better Return On Invested Capital (16.86%) than 89.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IBP is above the industry average of 12.03%.
The 3 year average ROIC (16.81%) for IBP is below the current ROIC(16.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 36.38% | ||
| ROIC | 16.86% |
ROA(3y)12.44%
ROA(5y)10.54%
ROE(3y)39.34%
ROE(5y)35.39%
ROIC(3y)16.81%
ROIC(5y)14.72%
1.3 Margins
IBP's Profit Margin of 8.72% is fine compared to the rest of the industry. IBP outperforms 69.70% of its industry peers.
IBP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.25%, IBP is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of IBP has grown nicely.
Looking at the Gross Margin, with a value of 33.81%, IBP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of IBP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | 8.72% | ||
| GM | 33.81% |
OM growth 3Y10.99%
OM growth 5Y10.18%
PM growth 3Y13.07%
PM growth 5Y14.1%
GM growth 3Y4.13%
GM growth 5Y3.29%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IBP is creating value.
Compared to 1 year ago, IBP has less shares outstanding
The number of shares outstanding for IBP has been reduced compared to 5 years ago.
The debt/assets ratio for IBP has been reduced compared to a year ago.
2.2 Solvency
IBP has an Altman-Z score of 5.12. This indicates that IBP is financially healthy and has little risk of bankruptcy at the moment.
IBP's Altman-Z score of 5.12 is amongst the best of the industry. IBP outperforms 80.30% of its industry peers.
IBP has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as IBP would need 3.51 years to pay back of all of its debts.
The Debt to FCF ratio of IBP (3.51) is better than 65.15% of its industry peers.
IBP has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.20, IBP is doing worse than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.95
WACC8.65%
2.3 Liquidity
IBP has a Current Ratio of 2.94. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IBP (2.94) is comparable to the rest of the industry.
IBP has a Quick Ratio of 2.40. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
IBP's Quick ratio of 2.40 is amongst the best of the industry. IBP outperforms 89.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
IBP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.34%, which is quite good.
IBP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.85% yearly.
The Revenue has been growing slightly by 5.85% in the past year.
Measured over the past years, IBP shows a quite strong growth in Revenue. The Revenue has been growing by 14.24% on average per year.
EPS 1Y (TTM)9.34%
EPS 3Y27.68%
EPS 5Y27.85%
EPS Q2Q%6.62%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%4.09%
3.2 Future
Based on estimates for the next years, IBP will show a small growth in Earnings Per Share. The EPS will grow by 6.60% on average per year.
IBP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y3.17%
EPS Next 2Y6.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.58%
Revenue Next 2Y3.57%
Revenue Next 3Y3.09%
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
A Price/Earnings ratio of 15.24 indicates a correct valuation of IBP.
The rest of the industry has a similar Price/Earnings ratio as IBP.
The average S&P500 Price/Earnings ratio is at 29.41. IBP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.77, IBP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IBP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.12, IBP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBP is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IBP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.17 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IBP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of IBP may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)0.55
EPS Next 2Y6.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IBP has a yearly dividend return of 0.91%, which is pretty low.
The stock price of IBP dropped by -22.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.10, IBP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, IBP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
IBP has been paying a dividend for over 5 years, so it has already some track record.
IBP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
33.01% of the earnings are spent on dividend by IBP. This is a low number and sustainable payout ratio.
DP33.01%
EPS Next 2Y6.6%
EPS Next 3YN/A
NYSE:IBP (3/5/2025, 2:24:09 PM)
171.27
+5.1 (+3.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.08%
Inst Owner Change-1.87%
Ins Owners1.97%
Ins Owner Change0.42%
Market Cap4.82B
Analysts69.33
Price Target226.72 (32.38%)
Short Float %6.19%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend3.02
Dividend Growth(5Y)N/A
DP33.01%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.97%
Min EPS beat(2)-6.52%
Max EPS beat(2)0.59%
EPS beat(4)3
Avg EPS beat(4)0.81%
Min EPS beat(4)-6.52%
Max EPS beat(4)5.45%
EPS beat(8)7
Avg EPS beat(8)5.85%
EPS beat(12)11
Avg EPS beat(12)10.75%
EPS beat(16)12
Avg EPS beat(16)6.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)1.83%
Revenue beat(16)8
Avg Revenue beat(16)1.25%
PT rev (1m)-2.72%
PT rev (3m)-5.79%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 14.77 | ||
| P/S | 1.64 | ||
| P/FCF | 19.17 | ||
| P/OCF | 14.18 | ||
| P/B | 6.83 | ||
| P/tB | 2190.7 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)11.24
EY6.56%
EPS(NY)11.6
Fwd EY6.77%
FCF(TTM)8.93
FCFY5.22%
OCF(TTM)12.08
OCFY7.05%
SpS104.52
BVpS25.06
TBVpS0.08
PEG (NY)4.8
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 36.38% | ||
| ROCE | 22.91% | ||
| ROIC | 16.86% | ||
| ROICexc | 20.89% | ||
| ROICexgc | 42.8% | ||
| OM | 13.25% | ||
| PM (TTM) | 8.72% | ||
| GM | 33.81% | ||
| FCFM | 8.55% |
ROA(3y)12.44%
ROA(5y)10.54%
ROE(3y)39.34%
ROE(5y)35.39%
ROIC(3y)16.81%
ROIC(5y)14.72%
ROICexc(3y)20.93%
ROICexc(5y)18.7%
ROICexgc(3y)44.39%
ROICexgc(5y)40.56%
ROCE(3y)22.83%
ROCE(5y)20%
ROICexcg growth 3Y9.03%
ROICexcg growth 5Y8.59%
ROICexc growth 3Y14.62%
ROICexc growth 5Y9.03%
OM growth 3Y10.99%
OM growth 5Y10.18%
PM growth 3Y13.07%
PM growth 5Y14.1%
GM growth 3Y4.13%
GM growth 5Y3.29%
F-Score8
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 87.2% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 8.92 | ||
| Cash Conversion | 69.22% | ||
| Profit Quality | 97.97% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.4 | ||
| Altman-Z | 5.12 |
F-Score8
WACC8.65%
ROIC/WACC1.95
Cap/Depr(3y)66.99%
Cap/Depr(5y)58.99%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.17%
Profit Quality(3y)105.43%
Profit Quality(5y)110.6%
High Growth Momentum
Growth
EPS 1Y (TTM)9.34%
EPS 3Y27.68%
EPS 5Y27.85%
EPS Q2Q%6.62%
EPS Next Y3.17%
EPS Next 2Y6.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.85%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%4.09%
Revenue Next Year1.58%
Revenue Next 2Y3.57%
Revenue Next 3Y3.09%
Revenue Next 5YN/A
EBIT growth 1Y5.02%
EBIT growth 3Y26.89%
EBIT growth 5Y25.87%
EBIT Next Year27.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.76%
FCF growth 3Y35.39%
FCF growth 5Y28.09%
OCF growth 1Y-0.06%
OCF growth 3Y34.96%
OCF growth 5Y22.53%