TOPBUILD CORP (BLD) Stock Fundamental Analysis
NYSE:BLD - New York Stock Exchange, Inc. - US89055F1030 - Common Stock - Currency: USD
BLD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BLD had positive earnings in the past year.
BLD had a positive operating cash flow in the past year.
BLD had positive earnings in each of the past 5 years.
Each year in the past 5 years BLD had a positive operating cash flow.
1.2 Ratios
BLD has a better Return On Assets (12.91%) than 92.19% of its industry peers.
With an excellent Return On Equity value of 28.05%, BLD belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
BLD has a better Return On Invested Capital (17.17%) than 93.75% of its industry peers.
BLD had an Average Return On Invested Capital over the past 3 years of 15.92%. This is significantly above the industry average of 10.33%.
The 3 year average ROIC (15.92%) for BLD is below the current ROIC(17.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 28.05% | ||
| ROIC | 17.17% |
ROA(3y)12.37%
ROA(5y)10.7%
ROE(3y)26.98%
ROE(5y)23.81%
ROIC(3y)15.92%
ROIC(5y)13.9%
1.3 Margins
The Profit Margin of BLD (11.23%) is better than 85.94% of its industry peers.
BLD's Profit Margin has improved in the last couple of years.
BLD has a Operating Margin of 16.89%. This is amongst the best in the industry. BLD outperforms 92.19% of its industry peers.
In the last couple of years the Operating Margin of BLD has grown nicely.
Looking at the Gross Margin, with a value of 30.33%, BLD is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of BLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.89% | ||
| PM (TTM) | 11.23% | ||
| GM | 30.33% |
OM growth 3Y6.74%
OM growth 5Y9.23%
PM growth 3Y7.92%
PM growth 5Y9.92%
GM growth 3Y2.94%
GM growth 5Y3.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BLD is creating some value.
The number of shares outstanding for BLD has been reduced compared to 1 year ago.
Compared to 5 years ago, BLD has less shares outstanding
Compared to 1 year ago, BLD has a worse debt to assets ratio.
2.2 Solvency
BLD has an Altman-Z score of 5.07. This indicates that BLD is financially healthy and has little risk of bankruptcy at the moment.
BLD has a Altman-Z score of 5.07. This is amongst the best in the industry. BLD outperforms 81.25% of its industry peers.
The Debt to FCF ratio of BLD is 1.99, which is an excellent value as it means it would take BLD, only 1.99 years of fcf income to pay off all of its debts.
BLD has a Debt to FCF ratio of 1.99. This is in the better half of the industry: BLD outperforms 75.00% of its industry peers.
BLD has a Debt/Equity ratio of 0.62. This is a neutral value indicating BLD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, BLD is doing worse than 67.19% of the companies in the same industry.
Although BLD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.75
WACC9.84%
2.3 Liquidity
A Current Ratio of 2.02 indicates that BLD has no problem at all paying its short term obligations.
With a Current ratio value of 2.02, BLD perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that BLD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.47, BLD is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
BLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.37%.
The Earnings Per Share has been growing by 30.78% on average over the past years. This is a very strong growth
Looking at the last year, BLD shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
Measured over the past years, BLD shows a quite strong growth in Revenue. The Revenue has been growing by 15.22% on average per year.
EPS 1Y (TTM)3.37%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-3.74%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-3.55%
3.2 Future
BLD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.81% yearly.
BLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.19% yearly.
EPS Next Y-3.47%
EPS Next 2Y2.26%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue Next Year-3.42%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.31, which indicates a correct valuation of BLD.
Compared to the rest of the industry, the Price/Earnings ratio of BLD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.31. BLD is valued slightly cheaper when compared to this.
BLD is valuated correctly with a Price/Forward Earnings ratio of 13.57.
The rest of the industry has a similar Price/Forward Earnings ratio as BLD.
BLD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BLD.
BLD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BLD is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
BLD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y2.26%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
BLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
298.53
-10.5 (-3.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.59%
Inst Owner Change1.39%
Ins Owners0.51%
Ins Owner Change7.7%
Market Cap8.53B
Analysts77.5
Price Target357.31 (19.69%)
Short Float %4.18%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.18%
Min EPS beat(2)0.62%
Max EPS beat(2)3.75%
EPS beat(4)3
Avg EPS beat(4)-0.24%
Min EPS beat(4)-5.6%
Max EPS beat(4)3.75%
EPS beat(8)7
Avg EPS beat(8)5.13%
EPS beat(12)11
Avg EPS beat(12)7.72%
EPS beat(16)14
Avg EPS beat(16)8.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.86%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)0.92%
PT rev (1m)-5.18%
PT rev (3m)-10.7%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-10.25%
Revenue NQ rev (1m)-1.5%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 13.57 | ||
| P/S | 1.62 | ||
| P/FCF | 12.42 | ||
| P/OCF | 11.38 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.56 |
EPS(TTM)20.86
EY6.99%
EPS(NY)22
Fwd EY7.37%
FCF(TTM)24.03
FCFY8.05%
OCF(TTM)26.23
OCFY8.79%
SpS184.83
BVpS74.01
TBVpS-18.78
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 28.05% | ||
| ROCE | 23.14% | ||
| ROIC | 17.17% | ||
| ROICexc | 18.67% | ||
| ROICexgc | 73.94% | ||
| OM | 16.89% | ||
| PM (TTM) | 11.23% | ||
| GM | 30.33% | ||
| FCFM | 13% |
ROA(3y)12.37%
ROA(5y)10.7%
ROE(3y)26.98%
ROE(5y)23.81%
ROIC(3y)15.92%
ROIC(5y)13.9%
ROICexc(3y)18.11%
ROICexc(5y)15.68%
ROICexgc(3y)69.41%
ROICexgc(5y)65%
ROCE(3y)21.45%
ROCE(5y)18.73%
ROICexcg growth 3Y15.87%
ROICexcg growth 5Y6.71%
ROICexc growth 3Y20.83%
ROICexc growth 5Y11.45%
OM growth 3Y6.74%
OM growth 5Y9.23%
PM growth 3Y7.92%
PM growth 5Y9.92%
GM growth 3Y2.94%
GM growth 5Y3.26%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 44.26% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.48% | ||
| Profit Quality | 115.73% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 5.07 |
F-Score6
WACC9.84%
ROIC/WACC1.75
Cap/Depr(3y)53.16%
Cap/Depr(5y)58.99%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.43%
Profit Quality(3y)105.6%
Profit Quality(5y)110.48%
High Growth Momentum
Growth
EPS 1Y (TTM)3.37%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-3.74%
EPS Next Y-3.47%
EPS Next 2Y2.26%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-3.55%
Revenue Next Year-3.42%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.19%
Revenue Next 5YN/A
EBIT growth 1Y-1.8%
EBIT growth 3Y22.97%
EBIT growth 5Y25.86%
EBIT Next Year9.26%
EBIT Next 3Y6.88%
EBIT Next 5YN/A
FCF growth 1Y36.71%
FCF growth 3Y26.69%
FCF growth 5Y25.58%
OCF growth 1Y30.16%
OCF growth 3Y24.41%
OCF growth 5Y23.35%