INSTALLED BUILDING PRODUCTS (IBP)

US45780R1014 - Common Stock

204.76  -1.72 (-0.83%)

Fundamental Rating

6

Taking everything into account, IBP scores 6 out of 10 in our fundamental rating. IBP was compared to 68 industry peers in the Household Durables industry. IBP gets an excellent profitability rating and is at the same time showing great financial health properties. IBP is quite expensive at the moment. It does show a decent growth rate. These ratings could make IBP a good candidate for quality investing.



9

1. Profitability

1.1 Basic Checks

In the past year IBP was profitable.
In the past year IBP had a positive cash flow from operations.
IBP had positive earnings in each of the past 5 years.
In the past 5 years IBP always reported a positive cash flow from operatings.

1.2 Ratios

IBP's Return On Assets of 12.89% is amongst the best of the industry. IBP outperforms 88.06% of its industry peers.
The Return On Equity of IBP (39.41%) is better than 97.01% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.96%, IBP belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IBP is above the industry average of 9.95%.
The last Return On Invested Capital (16.96%) for IBP is above the 3 year average (13.60%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.89%
ROE 39.41%
ROIC 16.96%
ROA(3y)9.31%
ROA(5y)8.14%
ROE(3y)34.74%
ROE(5y)32.3%
ROIC(3y)13.6%
ROIC(5y)12.46%

1.3 Margins

IBP has a Profit Margin of 9.02%. This is in the better half of the industry: IBP outperforms 70.15% of its industry peers.
In the last couple of years the Profit Margin of IBP has grown nicely.
With a decent Operating Margin value of 13.15%, IBP is doing good in the industry, outperforming 76.12% of the companies in the same industry.
In the last couple of years the Operating Margin of IBP has grown nicely.
With a decent Gross Margin value of 32.88%, IBP is doing good in the industry, outperforming 71.64% of the companies in the same industry.
IBP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.15%
PM (TTM) 9.02%
GM 32.88%
OM growth 3Y15.13%
OM growth 5Y13.67%
PM growth 3Y22.86%
PM growth 5Y18.19%
GM growth 3Y2.53%
GM growth 5Y1.63%

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IBP is creating some value.
The number of shares outstanding for IBP has been reduced compared to 1 year ago.
The number of shares outstanding for IBP has been reduced compared to 5 years ago.
Compared to 1 year ago, IBP has an improved debt to assets ratio.

2.2 Solvency

IBP has an Altman-Z score of 5.66. This indicates that IBP is financially healthy and has little risk of bankruptcy at the moment.
IBP's Altman-Z score of 5.66 is amongst the best of the industry. IBP outperforms 89.55% of its industry peers.
The Debt to FCF ratio of IBP is 3.21, which is a good value as it means it would take IBP, 3.21 years of fcf income to pay off all of its debts.
IBP has a Debt to FCF ratio of 3.21. This is comparable to the rest of the industry: IBP outperforms 46.27% of its industry peers.
IBP has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IBP (1.34) is worse than 83.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 3.21
Altman-Z 5.66
ROIC/WACC1.73
WACC9.79%

2.3 Liquidity

IBP has a Current Ratio of 3.08. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
IBP's Current ratio of 3.08 is in line compared to the rest of the industry. IBP outperforms 59.70% of its industry peers.
IBP has a Quick Ratio of 2.59. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of IBP (2.59) is better than 89.55% of its industry peers.
Industry RankSector Rank
Current Ratio 3.08
Quick Ratio 2.59

6

3. Growth

3.1 Past

IBP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.66%, which is quite impressive.
Measured over the past years, IBP shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.57% on average per year.
The Revenue has grown by 9.03% in the past year. This is quite good.
Measured over the past years, IBP shows a quite strong growth in Revenue. The Revenue has been growing by 18.70% on average per year.
EPS 1Y (TTM)25.66%
EPS 3Y39.65%
EPS 5Y34.57%
EPS growth Q2Q11.16%
Revenue 1Y (TTM)9.03%
Revenue growth 3Y20.88%
Revenue growth 5Y18.7%
Revenue growth Q2Q-1.75%

3.2 Future

IBP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.39% yearly.
Based on estimates for the next years, IBP will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y12.92%
EPS Next 2Y9.55%
EPS Next 3Y10.39%
EPS Next 5YN/A
Revenue Next Year3.01%
Revenue Next 2Y4.32%
Revenue Next 3Y5.35%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.50, which indicates a rather expensive current valuation of IBP.
Compared to the rest of the industry, the Price/Earnings ratio of IBP is on the same level as its industry peers.
IBP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.18.
The Price/Forward Earnings ratio is 19.04, which indicates a rather expensive current valuation of IBP.
Based on the Price/Forward Earnings ratio, IBP is valued a bit more expensive than the industry average as 62.69% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of IBP to the average of the S&P500 Index (21.51), we can say IBP is valued inline with the index average.
Industry RankSector Rank
PE 20.5
Fwd PE 19.04

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBP indicates a slightly more expensive valuation: IBP is more expensive than 61.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IBP is valued a bit more expensive than 62.69% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.36
EV/EBITDA 14.05

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IBP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)0.59
EPS Next 2Y9.55%
EPS Next 3Y10.39%

3

5. Dividend

5.1 Amount

IBP has a yearly dividend return of 0.62%, which is pretty low.
Compared to an average industry Dividend Yield of 3.16, IBP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.62, IBP pays less dividend than the S&P500 average, which is at 2.48.
Industry RankSector Rank
Dividend Yield 0.62%

5.2 History

IBP has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

25.32% of the earnings are spent on dividend by IBP. This is a low number and sustainable payout ratio.
DP25.32%
EPS Next 2Y9.55%
EPS Next 3Y10.39%

INSTALLED BUILDING PRODUCTS

NYSE:IBP (2/20/2024, 10:34:55 AM)

204.76

-1.72 (-0.83%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.82B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.62%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 20.5
Fwd PE 19.04
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)0.59
Profitability
Industry RankSector Rank
ROA 12.89%
ROE 39.41%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.15%
PM (TTM) 9.02%
GM 32.88%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.43
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.08
Quick Ratio 2.59
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)25.66%
EPS 3Y39.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.03%
Revenue growth 3Y20.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y