Exploring NYSE:IBP's quality characteristics.

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

Why NYSE:IBP may be interesting for quality investors.

• The 5-year revenue growth of INSTALLED BUILDING PRODUCTS has been remarkable, with 18.7% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of INSTALLED BUILDING PRODUCTS stands at 44.54%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• INSTALLED BUILDING PRODUCTS maintains a healthy Debt/Free Cash Flow Ratio of 3.27, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of INSTALLED BUILDING PRODUCTS stands at 112.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• The 5-year EBIT growth of INSTALLED BUILDING PRODUCTS has been remarkable, with 34.93% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of INSTALLED BUILDING PRODUCTS 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.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall IBP gets a fundamental rating of 6 out of 10. We evaluated IBP against 67 industry peers in the Household Durables industry. IBP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IBP has a correct valuation and a medium growth rate. These ratings could make IBP a good candidate for quality investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

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.