Examining the Quality Attributes of NYSE:IBP.

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 INSTALLED BUILDING PRODUCTS (NYSE:IBP) is suited for quality investing. Investors should of course do their own research, but we spotted INSTALLED BUILDING PRODUCTS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Key Considerations for Quality Investors.

• Over the past 5 years, INSTALLED BUILDING PRODUCTS has experienced impressive revenue growth, with 18.7% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 45.89%, INSTALLED BUILDING PRODUCTS 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 3.21, INSTALLED BUILDING PRODUCTS 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.
• INSTALLED BUILDING PRODUCTS demonstrates consistent Profit Quality over the past 5 years, with a strong 112.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• INSTALLED BUILDING PRODUCTS has demonstrated consistent growth in EBIT over the past 5 years, with a strong 34.93%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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 assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

IBP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 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. While showing a medium growth rate, IBP is valued expensive at the moment. 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.