INSTALLED BUILDING PRODUCTS (IBP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IBP - US45780R1014 - Common Stock
267.45 USD
+8.06 (+3.11%)
267.45 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IBP. IBP was compared to 60 industry peers in the Household Durables industry. IBP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IBP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IBP had positive earnings in the past year.
IBP had a positive operating cash flow in the past year.
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 (12.47%) than 90.00% of its industry peers.
IBP has a better Return On Equity (37.68%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.60%, IBP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IBP is significantly above the industry average of 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.47% | ||
| ROE | 37.68% | ||
| ROIC | 16.6% |
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 has a better Profit Margin (8.60%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of IBP has grown nicely.
IBP's Operating Margin of 12.73% is fine compared to the rest of the industry. IBP outperforms 78.33% of its industry peers.
IBP's Operating Margin has improved in the last couple of years.
IBP's Gross Margin of 33.62% is fine compared to the rest of the industry. IBP outperforms 68.33% of its industry peers.
In the last couple of years the Gross Margin of IBP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.73% | ||
| PM (TTM) | 8.6% | ||
| GM | 33.62% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IBP is creating value.
The number of shares outstanding for IBP has been reduced compared to 1 year ago.
IBP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IBP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.19 indicates that IBP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.19, IBP belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
IBP has a debt to FCF ratio of 2.91. This is a good value and a sign of high solvency as IBP would need 2.91 years to pay back of all of its debts.
IBP's Debt to FCF ratio of 2.91 is fine compared to the rest of the industry. IBP outperforms 66.67% of its industry peers.
IBP has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.25, IBP is doing worse than 78.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 6.19 |
ROIC/WACC1.85
WACC8.97%
2.3 Liquidity
IBP has a Current Ratio of 2.78. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
IBP's Current ratio of 2.78 is in line compared to the rest of the industry. IBP outperforms 51.67% of its industry peers.
A Quick Ratio of 2.28 indicates that IBP has no problem at all paying its short term obligations.
IBP has a Quick ratio of 2.28. This is amongst the best in the industry. IBP outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
IBP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.27%.
Measured over the past years, IBP shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.81% on average per year.
The Revenue has been growing slightly by 2.12% 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)0.27%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%11.58%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%2.31%
3.2 Future
IBP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.38% yearly.
The Revenue is expected to grow by 2.40% on average over the next years.
EPS Next Y-1.32%
EPS Next 2Y-0.41%
EPS Next 3Y3.38%
EPS Next 5YN/A
Revenue Next Year0.3%
Revenue Next 2Y1.25%
Revenue Next 3Y2.4%
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
With a Price/Earnings ratio of 24.12, IBP is valued on the expensive side.
65.00% of the companies in the same industry are cheaper than IBP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IBP to the average of the S&P500 Index (26.60), we can say IBP is valued inline with the index average.
IBP is valuated rather expensively with a Price/Forward Earnings ratio of 24.03.
Based on the Price/Forward Earnings ratio, IBP is valued a bit more expensive than 65.00% of the companies in the same industry.
IBP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 24.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBP indicates a slightly more expensive valuation: IBP is more expensive than 66.67% of the companies listed in the same industry.
IBP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.84 | ||
| EV/EBITDA | 16.49 |
4.3 Compensation for Growth
The excellent profitability rating of IBP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y-0.41%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
IBP has a yearly dividend return of 0.57%, which is pretty low.
IBP's Dividend Yield is comparable with the industry average which is at 1.23.
Compared to an average S&P500 Dividend Yield of 2.00, IBP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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
34.18% of the earnings are spent on dividend by IBP. This is a low number and sustainable payout ratio.
DP34.18%
EPS Next 2Y-0.41%
EPS Next 3Y3.38%
267.45
+8.06 (+3.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners103.76%
Inst Owner Change-3.4%
Ins Owners1.99%
Ins Owner Change-0.32%
Market Cap7.26B
Revenue(TTM)2.97B
Net Income(TTM)255.70M
Analysts54.29
Price Target257.04 (-3.89%)
Short Float %9.49%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend3.02
Dividend Growth(5Y)N/A
DP34.18%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.52%
Min EPS beat(2)15.06%
Max EPS beat(2)21.97%
EPS beat(4)2
Avg EPS beat(4)7.75%
Min EPS beat(4)-5.94%
Max EPS beat(4)21.97%
EPS beat(8)5
Avg EPS beat(8)5.45%
EPS beat(12)9
Avg EPS beat(12)7.38%
EPS beat(16)12
Avg EPS beat(16)9.5%
Revenue beat(2)2
Avg Revenue beat(2)4.26%
Min Revenue beat(2)2.61%
Max Revenue beat(2)5.92%
Revenue beat(4)2
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)5.92%
Revenue beat(8)3
Avg Revenue beat(8)0.9%
Revenue beat(12)5
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)1.98%
PT rev (1m)1.24%
PT rev (3m)4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.58%
EPS NY rev (1m)6.65%
EPS NY rev (3m)7.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 24.03 | ||
| P/S | 2.44 | ||
| P/FCF | 23.84 | ||
| P/OCF | 19.03 | ||
| P/B | 10.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.49 |
EPS(TTM)11.09
EY4.15%
EPS(NY)11.13
Fwd EY4.16%
FCF(TTM)11.22
FCFY4.2%
OCF(TTM)14.05
OCFY5.26%
SpS109.6
BVpS25.01
TBVpS-0.96
PEG (NY)N/A
PEG (5Y)0.87
Graham Number79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.47% | ||
| ROE | 37.68% | ||
| ROCE | 22.55% | ||
| ROIC | 16.6% | ||
| ROICexc | 20.71% | ||
| ROICexgc | 43.48% | ||
| OM | 12.73% | ||
| PM (TTM) | 8.6% | ||
| GM | 33.62% | ||
| FCFM | 10.24% |
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%
ROICexgc growth 3Y9.03%
ROICexgc 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-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.91 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 93.9% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 9.1 | ||
| Cash Conversion | 82.82% | ||
| Profit Quality | 119.05% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 6.19 |
F-Score6
WACC8.97%
ROIC/WACC1.85
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)0.27%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%11.58%
EPS Next Y-1.32%
EPS Next 2Y-0.41%
EPS Next 3Y3.38%
EPS Next 5YN/A
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%2.31%
Revenue Next Year0.3%
Revenue Next 2Y1.25%
Revenue Next 3Y2.4%
Revenue Next 5YN/A
EBIT growth 1Y-2.62%
EBIT growth 3Y26.89%
EBIT growth 5Y25.87%
EBIT Next Year19.96%
EBIT Next 3Y8.72%
EBIT Next 5YN/A
FCF growth 1Y11.75%
FCF growth 3Y35.39%
FCF growth 5Y28.09%
OCF growth 1Y15.65%
OCF growth 3Y34.96%
OCF growth 5Y22.53%
INSTALLED BUILDING PRODUCTS / IBP FAQ
Can you provide the ChartMill fundamental rating for INSTALLED BUILDING PRODUCTS?
ChartMill assigns a fundamental rating of 6 / 10 to IBP.
Can you provide the valuation status for INSTALLED BUILDING PRODUCTS?
ChartMill assigns a valuation rating of 2 / 10 to INSTALLED BUILDING PRODUCTS (IBP). This can be considered as Overvalued.
How profitable is INSTALLED BUILDING PRODUCTS (IBP) stock?
INSTALLED BUILDING PRODUCTS (IBP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of INSTALLED BUILDING PRODUCTS (IBP) stock?
The Price/Earnings (PE) ratio for INSTALLED BUILDING PRODUCTS (IBP) is 24.12 and the Price/Book (PB) ratio is 10.69.
Can you provide the dividend sustainability for IBP stock?
The dividend rating of INSTALLED BUILDING PRODUCTS (IBP) is 3 / 10 and the dividend payout ratio is 34.18%.