INSTALLED BUILDING PRODUCTS (IBP)
US45780R1014 - Common Stock
Taking everything into account, IBP scores 6 out of 10 in our fundamental rating. IBP was compared to 66 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making IBP a very profitable company, without any liquidiy or solvency issues. IBP has a decent growth rate and is not valued too expensively. These ratings would make IBP suitable for quality investing!
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.
In the past 5 years IBP has always been profitable.
Each year in the past 5 years IBP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IBP (12.28%) is better than 89.06% of its industry peers.
The Return On Equity of IBP (35.53%) is better than 93.75% of its industry peers.
IBP has a Return On Invested Capital of 16.83%. This is amongst the best in the industry. IBP outperforms 89.06% of its industry peers.
IBP had an Average Return On Invested Capital over the past 3 years of 14.63%. This is above the industry average of 11.80%.
The 3 year average ROIC (14.63%) for IBP is below the current ROIC(16.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.28% | ||
| ROE | 35.53% | ||
| ROIC | 16.83% |
ROA(3y)10.68%
ROA(5y)9.29%
ROE(3y)36.71%
ROE(5y)33.57%
ROIC(3y)14.63%
ROIC(5y)13.36%
1.3 Margins
IBP's Profit Margin of 8.74% is fine compared to the rest of the industry. IBP outperforms 70.31% of its industry peers.
In the last couple of years the Profit Margin of IBP has grown nicely.
IBP has a Operating Margin of 13.35%. This is in the better half of the industry: IBP outperforms 78.13% of its industry peers.
In the last couple of years the Operating Margin of IBP has grown nicely.
The Gross Margin of IBP (33.94%) is better than 68.75% of its industry peers.
IBP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.35% | ||
| PM (TTM) | 8.74% | ||
| GM | 33.94% |
OM growth 3Y10.25%
OM growth 5Y13.22%
PM growth 3Y14.26%
PM growth 5Y16.47%
GM growth 3Y2.78%
GM growth 5Y3.79%
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.
The number of shares outstanding for IBP has been increased compared to 1 year ago.
The number of shares outstanding for IBP has been reduced compared to 5 years ago.
IBP has a better debt/assets ratio than last year.
2.2 Solvency
IBP has an Altman-Z score of 5.21. This indicates that IBP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.21, IBP is doing good in the industry, outperforming 79.69% of the companies in the same industry.
The Debt to FCF ratio of IBP is 3.22, which is a good value as it means it would take IBP, 3.22 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.22, IBP is doing good in the industry, outperforming 67.19% of the companies in the same industry.
IBP has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.18, IBP is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 5.21 |
ROIC/WACC1.94
WACC8.67%
2.3 Liquidity
IBP has a Current Ratio of 2.99. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
IBP has a Current ratio (2.99) which is in line with its industry peers.
A Quick Ratio of 2.50 indicates that IBP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.50, IBP belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.71% over the past year.
Measured over the past years, IBP shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.95% on average per year.
The Revenue has been growing slightly by 6.10% in the past year.
The Revenue has been growing by 15.77% on average over the past years. This is quite good.
EPS 1Y (TTM)10.71%
EPS 3Y33.3%
EPS 5Y30.95%
EPS Q2Q%2.15%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y18.9%
Revenue growth 5Y15.77%
Sales Q2Q%7.66%
3.2 Future
The Earnings Per Share is expected to grow by 8.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.20% on average over the next years.
EPS Next Y8.94%
EPS Next 2Y6.86%
EPS Next 3Y8.24%
EPS Next 5YN/A
Revenue Next Year7.66%
Revenue Next 2Y5.94%
Revenue Next 3Y6.2%
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
The Price/Earnings ratio is 16.10, which indicates a correct valuation of IBP.
IBP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, IBP is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.17, which indicates a correct valuation of IBP.
The rest of the industry has a similar Price/Forward Earnings ratio as IBP.
When comparing the Price/Forward Earnings ratio of IBP to the average of the S&P500 Index (22.83), we can say IBP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.17 |
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.
Based on the Price/Free Cash Flow ratio, IBP is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 11.18 |
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.
IBP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)0.52
EPS Next 2Y6.86%
EPS Next 3Y8.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, IBP is not a good candidate for dividend investing.
The stock price of IBP dropped by -25.57% 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.
IBP's Dividend Yield is a higher than the industry average which is at 2.94.
With a Dividend Yield of 0.79, IBP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
IBP has been paying a dividend for less than 5 years, so it still needs to build a 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
33.12% of the earnings are spent on dividend by IBP. This is a low number and sustainable payout ratio.
DP33.12%
EPS Next 2Y6.86%
EPS Next 3Y8.24%
INSTALLED BUILDING PRODUCTS
NYSE:IBP (12/20/2024, 8:17:43 PM)
After market: 169.13 -8.9 (-5%)178.03
+1.04 (+0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners92.41%
Inst Owner Change2.6%
Ins Owners1.95%
Ins Owner Change0%
Market Cap5.01B
Analysts71.25
Price Target249.72 (40.27%)
Short Float %4.55%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Dividend Growth(5Y)N/A
DP33.12%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.4%
Min EPS beat(2)-6.52%
Max EPS beat(2)3.71%
EPS beat(4)3
Avg EPS beat(4)3.16%
Min EPS beat(4)-6.52%
Max EPS beat(4)9.99%
EPS beat(8)7
Avg EPS beat(8)7.19%
EPS beat(12)10
Avg EPS beat(12)10.08%
EPS beat(16)11
Avg EPS beat(16)6.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)4.56%
Revenue beat(8)3
Avg Revenue beat(8)0.19%
Revenue beat(12)7
Avg Revenue beat(12)2.17%
Revenue beat(16)8
Avg Revenue beat(16)1.29%
PT rev (1m)-4.22%
PT rev (3m)-3.69%
EPS NQ rev (1m)-4.41%
EPS NQ rev (3m)-12.65%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-4.49%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-5.71%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.17 | ||
| P/S | 1.72 | ||
| P/FCF | 18.32 | ||
| P/OCF | 14.12 | ||
| P/B | 6.99 | ||
| P/tB | 110.1 | ||
| EV/EBITDA | 11.18 |
EPS(TTM)11.06
EY6.21%
EPS(NY)11.74
Fwd EY6.59%
FCF(TTM)9.72
FCFY5.46%
OCF(TTM)12.61
OCFY7.08%
SpS103.48
BVpS25.46
TBVpS1.62
PEG (NY)1.8
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.28% | ||
| ROE | 35.53% | ||
| ROCE | 22.92% | ||
| ROIC | 16.83% | ||
| ROICexc | 22.13% | ||
| ROICexgc | 46.12% | ||
| OM | 13.35% | ||
| PM (TTM) | 8.74% | ||
| GM | 33.94% | ||
| FCFM | 9.39% |
ROA(3y)10.68%
ROA(5y)9.29%
ROE(3y)36.71%
ROE(5y)33.57%
ROIC(3y)14.63%
ROIC(5y)13.36%
ROICexc(3y)18.54%
ROICexc(5y)17.19%
ROICexgc(3y)41.02%
ROICexgc(5y)37.56%
ROCE(3y)19.92%
ROCE(5y)18.2%
ROICexcg growth 3Y8.72%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y9.1%
ROICexc growth 5Y11.35%
OM growth 3Y10.25%
OM growth 5Y13.22%
PM growth 3Y14.26%
PM growth 5Y16.47%
GM growth 3Y2.78%
GM growth 5Y3.79%
F-Score6
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.22 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 82.14% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 9 | ||
| Cash Conversion | 72.76% | ||
| Profit Quality | 107.45% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 5.21 |
F-Score6
WACC8.67%
ROIC/WACC1.94
Cap/Depr(3y)53.2%
Cap/Depr(5y)57.38%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.23%
Profit Quality(3y)101.19%
Profit Quality(5y)112.38%
High Growth Momentum
Growth
EPS 1Y (TTM)10.71%
EPS 3Y33.3%
EPS 5Y30.95%
EPS Q2Q%2.15%
EPS Next Y8.94%
EPS Next 2Y6.86%
EPS Next 3Y8.24%
EPS Next 5YN/A
Revenue 1Y (TTM)6.1%
Revenue growth 3Y18.9%
Revenue growth 5Y15.77%
Sales Q2Q%7.66%
Revenue Next Year7.66%
Revenue Next 2Y5.94%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y7.7%
EBIT growth 3Y31.09%
EBIT growth 5Y31.07%
EBIT Next Year30.54%
EBIT Next 3Y13.52%
EBIT Next 5YN/A
FCF growth 1Y55.22%
FCF growth 3Y23.7%
FCF growth 5Y35.32%
OCF growth 1Y60.95%
OCF growth 3Y23.46%
OCF growth 5Y28.63%