TOPBUILD CORP (BLD) Stock Fundamental Analysis
NYSE:BLD - New York Stock Exchange, Inc. - US89055F1030 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BLD. BLD was compared to 63 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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years BLD has been profitable.
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 92.06% of its industry peers.
BLD has a Return On Equity of 28.05%. This is amongst the best in the industry. BLD outperforms 95.24% of its industry peers.
BLD's Return On Invested Capital of 17.17% is amongst the best of the industry. BLD outperforms 92.06% 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 10.03%.
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
BLD has a Profit Margin of 11.23%. This is amongst the best in the industry. BLD outperforms 87.30% of its industry peers.
BLD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.89%, BLD belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
In the last couple of years the Operating Margin of BLD has grown nicely.
BLD's Gross Margin of 30.33% is fine compared to the rest of the industry. BLD outperforms 61.90% of its industry peers.
BLD's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BLD is creating value.
The number of shares outstanding for BLD has been reduced compared to 1 year ago.
The number of shares outstanding for BLD has been reduced compared to 5 years ago.
Compared to 1 year ago, BLD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.79 indicates that BLD is not in any danger for bankruptcy at the moment.
BLD has a better Altman-Z score (5.79) than 82.54% of its industry peers.
BLD has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of 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 79.37% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that BLD is somewhat dependend on debt financing.
BLD has a worse Debt to Equity ratio (0.62) than 66.67% of its industry peers.
Even though the debt/equity ratio score it not favorable for BLD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 5.79 |
ROIC/WACC1.99
WACC8.65%
2.3 Liquidity
BLD has a Current Ratio of 2.02. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BLD (2.02) is worse than 61.90% of its industry peers.
BLD has a Quick Ratio of 1.47. This is a normal value and indicates that BLD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BLD (1.47) is better than 74.60% of its industry peers.
| 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 1.97%.
Measured over the past years, BLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.78% on average per year.
BLD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
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)1.97%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-2.03%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-4.99%
3.2 Future
Based on estimates for the next years, BLD will show a small growth in Earnings Per Share. The EPS will grow by 5.81% on average per year.
BLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.37% yearly.
EPS Next Y-3.47%
EPS Next 2Y2.46%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue Next Year-2.93%
Revenue Next 2Y0.58%
Revenue Next 3Y1.37%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.02 indicates a rather expensive 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.
Compared to an average S&P500 Price/Earnings ratio of 26.48, BLD is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.81, the valuation of BLD can be described as rather expensive.
60.32% of the companies in the same industry are cheaper than BLD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.04. BLD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLD is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BLD is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
The excellent profitability rating of BLD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y2.46%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
BLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
415.41
+2.24 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.59%
Inst Owner Change0.53%
Ins Owners0.51%
Ins Owner Change7.66%
Market Cap11.88B
Analysts78.82
Price Target392.72 (-5.46%)
Short Float %5.85%
Short Ratio4.09
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)5.6%
PT rev (3m)-1.92%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 18.81 | ||
| P/S | 2.25 | ||
| P/FCF | 17.29 | ||
| P/OCF | 15.84 | ||
| P/B | 5.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.44 |
EPS(TTM)20.75
EY5%
EPS(NY)22.09
Fwd EY5.32%
FCF(TTM)24.03
FCFY5.78%
OCF(TTM)26.23
OCFY6.31%
SpS184.83
BVpS74.01
TBVpS-18.78
PEG (NY)N/A
PEG (5Y)0.65
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 | 5.79 |
F-Score6
WACC8.65%
ROIC/WACC1.99
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)1.97%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-2.03%
EPS Next Y-3.47%
EPS Next 2Y2.46%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-4.99%
Revenue Next Year-2.93%
Revenue Next 2Y0.58%
Revenue Next 3Y1.37%
Revenue Next 5YN/A
EBIT growth 1Y-1.8%
EBIT growth 3Y22.97%
EBIT growth 5Y25.86%
EBIT Next Year9.85%
EBIT Next 3Y5.1%
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%