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Is NYSE:IBP suited for quality investing?

By Mill Chart

Last update: May 6, 2024

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 15.77% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 46.88%, INSTALLED BUILDING PRODUCTS 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.
  • INSTALLED BUILDING PRODUCTS maintains a healthy Debt/Free Cash Flow Ratio of 3.15, 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.
  • 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.
  • With a robust 5-year EBIT growth of 31.07%, INSTALLED BUILDING PRODUCTS 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 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.

What is the full fundamental picture of NYSE:IBP telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to IBP. IBP was compared to 67 industry peers in the Household Durables industry. While IBP has a great profitability rating, there are some minor concerns on its financial health. IBP is quite expensive at the moment. It does show a decent growth rate.

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.

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.