INSTALLED BUILDING PRODUCTS (IBP) Stock Fundamental Analysis
NYSE:IBP - New York Stock Exchange, Inc. - US45780R1014 - Common Stock - Currency: USD
IBP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. IBP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IBP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IBP had positive earnings in the past year.
IBP had a positive operating cash flow in the past year.
Each year in the past 5 years IBP has been profitable.
In the past 5 years IBP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IBP (12.31%) is better than 90.63% of its industry peers.
The Return On Equity of IBP (37.24%) is better than 96.88% of its industry peers.
The Return On Invested Capital of IBP (16.53%) is better than 92.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IBP is significantly above the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.31% | ||
| ROE | 37.24% | ||
| ROIC | 16.53% |
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
IBP's Profit Margin of 8.39% is fine compared to the rest of the industry. IBP outperforms 67.19% of its industry peers.
IBP's Profit Margin has improved in the last couple of years.
IBP has a better Operating Margin (12.67%) than 78.13% of its industry peers.
IBP's Operating Margin has improved in the last couple of years.
IBP's Gross Margin of 33.54% is fine compared to the rest of the industry. IBP outperforms 68.75% of its industry peers.
IBP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.67% | ||
| PM (TTM) | 8.39% | ||
| GM | 33.54% |
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
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.
The debt/assets ratio for IBP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.18 indicates that IBP is not in any danger for bankruptcy at the moment.
IBP has a Altman-Z score of 5.18. This is amongst the best in the industry. IBP outperforms 82.81% of its industry peers.
The Debt to FCF ratio of IBP is 3.38, which is a good value as it means it would take IBP, 3.38 years of fcf income to pay off all of its debts.
IBP has a Debt to FCF ratio of 3.38. This is in the better half of the industry: IBP outperforms 67.19% of its industry peers.
IBP has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.28, IBP is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.69
WACC9.78%
2.3 Liquidity
A Current Ratio of 2.89 indicates that IBP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.89, IBP is in line with its industry, outperforming 57.81% of the companies in the same industry.
A Quick Ratio of 2.31 indicates that IBP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.31, IBP belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.17% over the past year.
Measured over the past years, IBP shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.81% on average per year.
The Revenue has been growing slightly by 4.30% in the past year.
The Revenue has been growing by 14.24% on average over the past years. This is quite good.
EPS 1Y (TTM)2.17%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%-1.17%
3.2 Future
Based on estimates for the next years, IBP will show a small growth in Earnings Per Share. The EPS will grow by 0.26% on average per year.
The Revenue is expected to grow by 1.54% on average over the next years.
EPS Next Y-13.12%
EPS Next 2Y-2.63%
EPS Next 3Y0.26%
EPS Next 5YN/A
Revenue Next Year-2.85%
Revenue Next 2Y0.38%
Revenue Next 3Y1.54%
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
Based on the Price/Earnings ratio of 15.24, the valuation of IBP can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as IBP.
When comparing the Price/Earnings ratio of IBP to the average of the S&P500 Index (26.31), we can say IBP is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.52 indicates a correct valuation of IBP.
60.94% of the companies in the same industry are cheaper than IBP, based on the Price/Forward Earnings ratio.
IBP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IBP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, IBP is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The excellent profitability rating of IBP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-2.63%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
IBP has a yearly dividend return of 0.87%, which is pretty low.
IBP's Dividend Yield is a higher than the industry average which is at 3.52.
With a Dividend Yield of 0.87, IBP pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
35.19% of the earnings are spent on dividend by IBP. This is a low number and sustainable payout ratio.
DP35.19%
EPS Next 2Y-2.63%
EPS Next 3Y0.26%
165.06
-5.63 (-3.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change3.77%
Ins Owners2.08%
Ins Owner Change0.26%
Market Cap4.56B
Analysts68.75
Price Target192.32 (16.52%)
Short Float %10.75%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend3.02
Dividend Growth(5Y)N/A
DP35.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.02%
Min EPS beat(2)-5.94%
Max EPS beat(2)-0.1%
EPS beat(4)1
Avg EPS beat(4)-2.21%
Min EPS beat(4)-6.52%
Max EPS beat(4)3.71%
EPS beat(8)5
Avg EPS beat(8)4.72%
EPS beat(12)9
Avg EPS beat(12)7.19%
EPS beat(16)11
Avg EPS beat(16)7.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)0.14%
Revenue beat(12)5
Avg Revenue beat(12)1.2%
Revenue beat(16)8
Avg Revenue beat(16)1.44%
PT rev (1m)-4.86%
PT rev (3m)-15.17%
EPS NQ rev (1m)-9.81%
EPS NQ rev (3m)-15.03%
EPS NY rev (1m)-7.54%
EPS NY rev (3m)-15.94%
Revenue NQ rev (1m)-1.77%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 15.52 | ||
| P/S | 1.55 | ||
| P/FCF | 17.51 | ||
| P/OCF | 13.13 | ||
| P/B | 6.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)10.83
EY6.56%
EPS(NY)10.64
Fwd EY6.44%
FCF(TTM)9.42
FCFY5.71%
OCF(TTM)12.57
OCFY7.62%
SpS106.2
BVpS23.93
TBVpS-1.51
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.31% | ||
| ROE | 37.24% | ||
| ROCE | 22.45% | ||
| ROIC | 16.53% | ||
| ROICexc | 20.17% | ||
| ROICexgc | 41.86% | ||
| OM | 12.67% | ||
| PM (TTM) | 8.39% | ||
| GM | 33.54% | ||
| FCFM | 8.87% |
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-Score5
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.38 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 84.06% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 8.66 | ||
| Cash Conversion | 73.12% | ||
| Profit Quality | 105.77% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 5.18 |
F-Score5
WACC9.78%
ROIC/WACC1.69
Cap/Depr(3y)66.99%
Cap/Depr(5y)58.99%
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)2.17%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%-15.79%
EPS Next Y-13.12%
EPS Next 2Y-2.63%
EPS Next 3Y0.26%
EPS Next 5YN/A
Revenue 1Y (TTM)4.3%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%-1.17%
Revenue Next Year-2.85%
Revenue Next 2Y0.38%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
EBIT growth 1Y-2.72%
EBIT growth 3Y26.89%
EBIT growth 5Y25.87%
EBIT Next Year9.51%
EBIT Next 3Y6.63%
EBIT Next 5YN/A
FCF growth 1Y2.72%
FCF growth 3Y35.39%
FCF growth 5Y28.09%
OCF growth 1Y14.43%
OCF growth 3Y34.96%
OCF growth 5Y22.53%