INSTALLED BUILDING PRODUCTS (IBP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IBP - US45780R1014 - Common Stock
297.26 USD
-7.19 (-2.36%)
297.26 USD
0 (0%)
IBP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year IBP was profitable.
- 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
- The Return On Assets of IBP (12.47%) is better than 90.00% of its industry peers.
- The Return On Equity of IBP (37.68%) is better than 100.00% of its industry peers.
- IBP's Return On Invested Capital of 16.60% is amongst the best of the industry. IBP outperforms 91.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IBP is significantly above the industry average of 9.71%.
| 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.
- In the last couple of years the Operating Margin of IBP has grown nicely.
- 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.
- IBP has less shares outstanding than it did 1 year ago.
- IBP has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, IBP has an improved debt to assets ratio.
2.2 Solvency
- IBP has an Altman-Z score of 6.64. This indicates that IBP is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.64, IBP belongs to the best of the industry, outperforming 90.00% 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 has a Debt to FCF ratio of 2.91. This is in the better half of the industry: IBP outperforms 65.00% of its industry peers.
- A Debt/Equity ratio of 1.25 is on the high side and indicates that IBP has dependencies on debt financing.
- IBP has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: IBP underperforms 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 6.64 |
ROIC/WACC1.78
WACC9.32%
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.
- With a Current ratio value of 2.78, IBP perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
- A Quick Ratio of 2.28 indicates that IBP has no problem at all paying its short term obligations.
- IBP's Quick ratio of 2.28 is amongst the best of 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%.
- The Earnings Per Share has been growing by 27.81% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 2.12% in the past year.
- IBP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.24% yearly.
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
- The Earnings Per Share is expected to grow by 4.80% on average over the next years.
- IBP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.50% yearly.
EPS Next Y-1.32%
EPS Next 2Y-0.57%
EPS Next 3Y3.26%
EPS Next 5Y4.8%
Revenue Next Year0.3%
Revenue Next 2Y1.15%
Revenue Next 3Y2.41%
Revenue Next 5Y2.5%
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 26.80, which means the current valuation is very expensive for IBP.
- IBP's Price/Earnings ratio is a bit more expensive when compared to the industry. IBP is more expensive than 68.33% of the companies in the same industry.
- IBP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 26.80, IBP can be considered very expensive at the moment.
- IBP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IBP is more expensive than 63.33% of the companies in the same industry.
- IBP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 26.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IBP is valued a bit more expensive than the industry average as 68.33% of the companies are valued more cheaply.
- IBP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.49 | ||
| EV/EBITDA | 18.72 |
4.3 Compensation for Growth
- IBP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y-0.57%
EPS Next 3Y3.26%
5. Dividend
5.1 Amount
- IBP has a yearly dividend return of 0.49%, which is pretty low.
- IBP's Dividend Yield is comparable with the industry average which is at 1.16.
- Compared to an average S&P500 Dividend Yield of 1.81, IBP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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-0.57%
EPS Next 3Y3.26%
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 26.8 and the Price/Book (PB) ratio is 11.88.
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%.