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Why TOPBUILD CORP (NYSE:BLD) should be investigated by quality investors.

By Mill Chart

Last update: Dec 15, 2023

In this article we will dive into TOPBUILD CORP (NYSE:BLD) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TOPBUILD CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into TOPBUILD CORP's Quality Metrics.

  • TOPBUILD CORP has demonstrated significant revenue growth over the past 5 years, with a 21.31% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 66.44%, TOPBUILD CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 2.11, TOPBUILD CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 103.0%, TOPBUILD CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • 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.
  • TOPBUILD CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall BLD gets a fundamental rating of 6 out of 10. We evaluated BLD against 68 industry peers in the Household Durables industry. BLD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BLD has a decent growth rate and is not valued too expensively. These ratings could make BLD a good candidate 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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.



NYSE:BLD (5/21/2024, 7:13:05 PM)

After market: 407.63 0 (0%)


+2.52 (+0.62%)

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