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Reasonable Growth, Debt Levels, and a High ROIC Make TOPBUILD CORP (NYSE:BLD) Appealing to Quality Investors.

By Mill Chart

Last update: Nov 15, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TOPBUILD CORP (NYSE:BLD) is suited for quality investing. Investors should of course do their own research, but we spotted TOPBUILD CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:BLD highlighted

  • Over the past 5 years, TOPBUILD CORP has experienced impressive revenue growth, with 21.31% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 66.44%, TOPBUILD CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 2.11, TOPBUILD CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • TOPBUILD CORP exhibits impressive Profit Quality (5-year) with a 103.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 36.76%, TOPBUILD CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of TOPBUILD CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NYSE:BLD?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to BLD. BLD was compared to 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making BLD a very profitable company, without any liquidiy or solvency issues. BLD is not valued too expensively and it also shows a decent growth rate. These ratings would make BLD suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of BLD

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NYSE:BLD (5/17/2024, 7:04:00 PM)

After market: 404.04 0 (0%)


-1.9 (-0.47%)

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