INSTALLED BUILDING PRODUCTS (IBP) Stock Fundamental Analysis
NYSE:IBP - US45780R1014 - Common Stock
273.08 USD
+8.9 (+3.37%)
273.08 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IBP. IBP was compared to 63 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making IBP a very profitable company, without any liquidiy or solvency issues. IBP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IBP had positive earnings in the past year.
In the past year IBP had a positive cash flow from operations.
IBP had positive earnings in each of the past 5 years.
IBP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IBP has a better Return On Assets (12.37%) than 93.65% of its industry peers.
Looking at the Return On Equity, with a value of 37.61%, IBP belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
IBP has a better Return On Invested Capital (16.49%) than 92.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IBP is significantly above the industry average of 10.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.37% | ||
| ROE | 37.61% | ||
| ROIC | 16.49% |
ROA(3y)12.44%
ROA(5y)10.54%
ROE(3y)39.34%
ROE(5y)35.39%
ROIC(3y)16.81%
ROIC(5y)14.72%
1.3 Margins
With a decent Profit Margin value of 8.45%, IBP is doing good in the industry, outperforming 69.84% of the companies in the same industry.
In the last couple of years the Profit Margin of IBP has grown nicely.
IBP's Operating Margin of 12.61% is amongst the best of the industry. IBP outperforms 80.95% of its industry peers.
In the last couple of years the Operating Margin of IBP has grown nicely.
Looking at the Gross Margin, with a value of 33.57%, IBP is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
IBP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.61% | ||
| PM (TTM) | 8.45% | ||
| GM | 33.57% |
OM growth 3Y10.99%
OM growth 5Y10.18%
PM growth 3Y13.07%
PM growth 5Y14.1%
GM growth 3Y4.13%
GM growth 5Y3.29%
2. Health
2.1 Basic Checks
IBP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IBP has less shares outstanding
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 6.40. This indicates that IBP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IBP (6.40) is better than 87.30% of its industry peers.
The Debt to FCF ratio of IBP is 3.19, which is a good value as it means it would take IBP, 3.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.19, IBP is doing good in the industry, outperforming 69.84% of the companies in the same industry.
IBP has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IBP (1.27) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 6.4 |
ROIC/WACC1.91
WACC8.62%
2.3 Liquidity
IBP has a Current Ratio of 2.85. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IBP (2.85) is comparable to the rest of the industry.
A Quick Ratio of 2.31 indicates that IBP has no problem at all paying its short term obligations.
IBP's Quick ratio of 2.31 is amongst the best of the industry. IBP outperforms 93.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
The earnings per share for IBP have decreased by -2.18% in the last year.
IBP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.81% yearly.
IBP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.44%.
The Revenue has been growing by 14.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.18%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%-2.32%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%3.08%
3.2 Future
The Earnings Per Share is expected to grow by 0.75% on average over the next years.
Based on estimates for the next years, IBP will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.
EPS Next Y-7.79%
EPS Next 2Y-1.93%
EPS Next 3Y0.75%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y0.43%
Revenue Next 3Y1.08%
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
With a Price/Earnings ratio of 25.38, IBP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of IBP indicates a slightly more expensive valuation: IBP is more expensive than 61.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. IBP is around the same levels.
The Price/Forward Earnings ratio is 25.31, which means the current valuation is very expensive for IBP.
Based on the Price/Forward Earnings ratio, IBP is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. IBP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 25.31 |
4.2 Price Multiples
IBP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IBP is more expensive than 61.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IBP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.95 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
The excellent profitability rating of IBP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-1.93%
EPS Next 3Y0.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, IBP is not a good candidate for dividend investing.
IBP's Dividend Yield is comparable with the industry average which is at 3.26.
With a Dividend Yield of 0.56, IBP pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
IBP has been paying a dividend for over 5 years, so it has already some track record.
IBP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
IBP pays out 34.89% of its income as dividend. This is a sustainable payout ratio.
DP34.89%
EPS Next 2Y-1.93%
EPS Next 3Y0.75%
273.08
+8.9 (+3.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.34%
Inst Owner Change2.13%
Ins Owners2.08%
Ins Owner Change0.18%
Market Cap7.46B
Analysts68.75
Price Target245.91 (-9.95%)
Short Float %9.1%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend3.02
Dividend Growth(5Y)N/A
DP34.89%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.02%
Min EPS beat(2)-5.94%
Max EPS beat(2)21.97%
EPS beat(4)1
Avg EPS beat(4)2.35%
Min EPS beat(4)-6.52%
Max EPS beat(4)21.97%
EPS beat(8)5
Avg EPS beat(8)5.58%
EPS beat(12)9
Avg EPS beat(12)6.79%
EPS beat(16)11
Avg EPS beat(16)7.95%
Revenue beat(2)1
Avg Revenue beat(2)2.87%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)5.92%
Revenue beat(4)1
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)5.92%
Revenue beat(8)2
Avg Revenue beat(8)0.43%
Revenue beat(12)5
Avg Revenue beat(12)0.89%
Revenue beat(16)8
Avg Revenue beat(16)1.73%
PT rev (1m)26.11%
PT rev (3m)21.65%
EPS NQ rev (1m)7.53%
EPS NQ rev (3m)-10.3%
EPS NY rev (1m)6.61%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)2.01%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 25.31 | ||
| P/S | 2.52 | ||
| P/FCF | 26.95 | ||
| P/OCF | 20.81 | ||
| P/B | 11.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.21 |
EPS(TTM)10.76
EY3.94%
EPS(NY)10.79
Fwd EY3.95%
FCF(TTM)10.13
FCFY3.71%
OCF(TTM)13.12
OCFY4.81%
SpS108.16
BVpS24.31
TBVpS-1.17
PEG (NY)N/A
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.37% | ||
| ROE | 37.61% | ||
| ROCE | 22.4% | ||
| ROIC | 16.49% | ||
| ROICexc | 20.2% | ||
| ROICexgc | 41.47% | ||
| OM | 12.61% | ||
| PM (TTM) | 8.45% | ||
| GM | 33.57% | ||
| FCFM | 9.37% |
ROA(3y)12.44%
ROA(5y)10.54%
ROE(3y)39.34%
ROE(5y)35.39%
ROIC(3y)16.81%
ROIC(5y)14.72%
ROICexc(3y)20.93%
ROICexc(5y)18.7%
ROICexgc(3y)44.39%
ROICexgc(5y)40.56%
ROCE(3y)22.83%
ROCE(5y)20%
ROICexcg growth 3Y9.03%
ROICexcg growth 5Y8.59%
ROICexc growth 3Y14.62%
ROICexc growth 5Y9.03%
OM growth 3Y10.99%
OM growth 5Y10.18%
PM growth 3Y13.07%
PM growth 5Y14.1%
GM growth 3Y4.13%
GM growth 5Y3.29%
F-Score6
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 52.4% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 67.83% | ||
| Profit Quality | 110.8% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 6.4 |
F-Score6
WACC8.62%
ROIC/WACC1.91
Cap/Depr(3y)54.98%
Cap/Depr(5y)51.78%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.17%
Profit Quality(3y)105.43%
Profit Quality(5y)110.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.18%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%-2.32%
EPS Next Y-7.79%
EPS Next 2Y-1.93%
EPS Next 3Y0.75%
EPS Next 5YN/A
Revenue 1Y (TTM)3.44%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%3.08%
Revenue Next Year-1.14%
Revenue Next 2Y0.43%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
EBIT growth 1Y-4.28%
EBIT growth 3Y26.89%
EBIT growth 5Y25.87%
EBIT Next Year8.89%
EBIT Next 3Y4.99%
EBIT Next 5YN/A
FCF growth 1Y3.67%
FCF growth 3Y35.39%
FCF growth 5Y28.09%
OCF growth 1Y13.33%
OCF growth 3Y34.96%
OCF growth 5Y22.53%