TOPBUILD CORP (BLD) Stock Fundamental Analysis
NYSE:BLD - US89055F1030 - Common Stock
420.76 USD
-4.7 (-1.1%)
420.76 USD
0 (0%)
Overall BLD gets a fundamental rating of 6 out of 10. We evaluated BLD against 63 industry peers in the Household Durables industry. BLD gets an excellent profitability rating and is at the same time showing great financial health properties. BLD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLD was profitable.
In the past year BLD had a positive cash flow from operations.
In the past 5 years BLD has always been profitable.
In the past 5 years BLD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.61%, BLD belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
BLD's Return On Equity of 27.73% is amongst the best of the industry. BLD outperforms 96.83% of its industry peers.
BLD has a better Return On Invested Capital (14.80%) than 82.54% 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 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.61% | ||
| ROE | 27.73% | ||
| ROIC | 14.8% |
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 (11.40%) is better than 87.30% of its industry peers.
In the last couple of years the Profit Margin of BLD has grown nicely.
With an excellent Operating Margin value of 16.84%, BLD belongs to the best 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.
The Gross Margin of BLD (30.17%) is better than 61.90% of its industry peers.
In the last couple of years the Gross Margin of BLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 11.4% | ||
| GM | 30.17% |
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.
BLD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BLD has been reduced compared to 5 years ago.
The debt/assets ratio for BLD is higher compared to a year ago.
2.2 Solvency
BLD has an Altman-Z score of 5.20. This indicates that BLD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.20, BLD belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
BLD has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as BLD would need 2.37 years to pay back of all of its debts.
BLD has a better Debt to FCF ratio (2.37) than 76.19% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BLD is somewhat dependend on debt financing.
BLD has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: BLD underperforms 68.25% of its industry peers.
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 | 0.86 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.69
WACC8.76%
2.3 Liquidity
A Current Ratio of 2.83 indicates that BLD has no problem at all paying its short term obligations.
The Current ratio of BLD (2.83) is comparable to the rest of the industry.
BLD has a Quick Ratio of 2.29. This indicates that BLD is financially healthy and has no problem in meeting its short term obligations.
BLD has a better Quick ratio (2.29) than 92.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.29 |
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%.
BLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.78% yearly.
BLD shows a decrease in Revenue. In the last year, the revenue decreased by -0.77%.
BLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.22% yearly.
EPS 1Y (TTM)1.97%
EPS 3Y24.7%
EPS 5Y30.78%
EPS Q2Q%-2.03%
Revenue 1Y (TTM)-0.77%
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 6.18% on average per year.
The Revenue is expected to grow by 0.52% on average over the next years.
EPS Next Y-3.05%
EPS Next 2Y2.47%
EPS Next 3Y6.18%
EPS Next 5YN/A
Revenue Next Year-1.6%
Revenue Next 2Y1.81%
Revenue Next 3Y0.52%
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 20.28 indicates a rather expensive valuation of BLD.
The rest of the industry has a similar Price/Earnings ratio as BLD.
BLD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.05, BLD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BLD to the average of the S&P500 Index (22.72), we can say BLD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BLD.
79.37% of the companies in the same industry are more expensive than BLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
The excellent profitability rating of BLD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.66
EPS Next 2Y2.47%
EPS Next 3Y6.18%
5. Dividend
5.1 Amount
BLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
420.76
-4.7 (-1.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners102.72%
Inst Owner Change1.86%
Ins Owners0.51%
Ins Owner Change-3.18%
Market Cap11.84B
Analysts78.82
Price Target449.92 (6.93%)
Short Float %5.79%
Short Ratio3.71
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)3.49%
Min EPS beat(2)3.24%
Max EPS beat(2)3.75%
EPS beat(4)4
Avg EPS beat(4)1.97%
Min EPS beat(4)0.28%
Max EPS beat(4)3.75%
EPS beat(8)7
Avg EPS beat(8)3.08%
EPS beat(12)11
Avg EPS beat(12)6.5%
EPS beat(16)14
Avg EPS beat(16)7.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-1.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.02%
Revenue beat(16)7
Avg Revenue beat(16)0.72%
PT rev (1m)19.24%
PT rev (3m)19.39%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-13.25%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)2.73%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 19.05 | ||
| P/S | 2.27 | ||
| P/FCF | 14.9 | ||
| P/OCF | 13.88 | ||
| P/B | 5.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.74 |
EPS(TTM)20.75
EY4.93%
EPS(NY)22.09
Fwd EY5.25%
FCF(TTM)28.25
FCFY6.71%
OCF(TTM)30.32
OCFY7.21%
SpS185.36
BVpS76.19
TBVpS-18.24
PEG (NY)N/A
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.61% | ||
| ROE | 27.73% | ||
| ROCE | 19.94% | ||
| ROIC | 14.8% | ||
| ROICexc | 18.3% | ||
| ROICexgc | 71.99% | ||
| OM | 16.84% | ||
| PM (TTM) | 11.4% | ||
| GM | 30.17% | ||
| FCFM | 15.24% |
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-Score5
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 40.8% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.54% | ||
| Profit Quality | 133.71% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 5.2 |
F-Score5
WACC8.76%
ROIC/WACC1.69
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-3.05%
EPS Next 2Y2.47%
EPS Next 3Y6.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y15.2%
Revenue growth 5Y15.22%
Sales Q2Q%-4.99%
Revenue Next Year-1.6%
Revenue Next 2Y1.81%
Revenue Next 3Y0.52%
Revenue Next 5YN/A
EBIT growth 1Y-3.19%
EBIT growth 3Y22.97%
EBIT growth 5Y25.86%
EBIT Next Year9.85%
EBIT Next 3Y5.1%
EBIT Next 5YN/A
FCF growth 1Y34.09%
FCF growth 3Y26.69%
FCF growth 5Y25.58%
OCF growth 1Y28.51%
OCF growth 3Y24.41%
OCF growth 5Y23.35%