INSTALLED BUILDING PRODUCTS (IBP)
US45780R1014 - Common Stock
IBP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. While IBP has a great profitability rating, there are some minor concerns on its financial health. 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.
Each year in the past 5 years IBP had a positive operating cash flow.
1.2 Ratios
IBP has a Return On Assets of 12.31%. This is amongst the best in the industry. IBP outperforms 88.06% of its industry peers.
With an excellent Return On Equity value of 36.37%, IBP belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
IBP has a better Return On Invested Capital (16.63%) than 94.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IBP is above the industry average of 10.06%.
The last Return On Invested Capital (16.63%) for IBP is above the 3 year average (14.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.31% | ||
| ROE | 36.37% | ||
| ROIC | 16.63% |
ROA(3y)10.68%
ROA(5y)9.29%
ROE(3y)36.71%
ROE(5y)33.57%
ROIC(3y)14.6%
ROIC(5y)13.34%
1.3 Margins
IBP has a better Profit Margin (8.77%) than 70.15% of its industry peers.
IBP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.33%, IBP is in the better half of 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.
IBP has a better Gross Margin (33.50%) than 70.15% of its industry peers.
IBP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.33% | ||
| PM (TTM) | 8.77% | ||
| GM | 33.5% |
OM growth 3Y10.07%
OM growth 5Y13.11%
PM growth 3Y14.26%
PM growth 5Y16.47%
GM growth 3Y2.78%
GM growth 5Y3.79%
2. Health
2.1 Basic Checks
IBP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, IBP has more 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
An Altman-Z score of 5.85 indicates that IBP is not in any danger for bankruptcy at the moment.
IBP has a better Altman-Z score (5.85) than 92.54% of its industry peers.
IBP has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as IBP would need 3.15 years to pay back of all of its debts.
IBP's Debt to FCF ratio of 3.15 is in line compared to the rest of the industry. IBP outperforms 55.22% of its industry peers.
IBP has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.26, IBP is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.59
WACC10.49%
2.3 Liquidity
A Current Ratio of 3.09 indicates that IBP has no problem at all paying its short term obligations.
IBP has a Current ratio of 3.09. This is comparable to the rest of the industry: IBP outperforms 58.21% of its industry peers.
IBP has a Quick Ratio of 2.62. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
IBP has a Quick ratio of 2.62. This is amongst the best in the industry. IBP outperforms 91.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
IBP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.73%, which is quite good.
The Earnings Per Share has been growing by 30.95% on average over the past years. This is a very strong growth
Looking at the last year, IBP shows a small growth in Revenue. The Revenue has grown by 4.08% in the last year.
The Revenue has been growing by 15.77% on average over the past years. This is quite good.
EPS 1Y (TTM)14.73%
EPS 3Y33.3%
EPS 5Y30.95%
EPS growth Q2Q11.93%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y18.9%
Revenue growth 5Y15.77%
Revenue growth Q2Q4.98%
3.2 Future
Based on estimates for the next years, IBP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.05% on average per year.
Based on estimates for the next years, IBP will show a quite strong growth in Revenue. The Revenue will grow by 9.50% on average per year.
EPS Next Y15.78%
EPS Next 2Y12.84%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year10.04%
Revenue Next 2Y8.4%
Revenue Next 3Y9.5%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.94, which indicates a rather expensive current valuation of IBP.
IBP's Price/Earnings ratio is a bit more expensive when compared to the industry. IBP is more expensive than 65.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.95, IBP is valued at the same level.
With a Price/Forward Earnings ratio of 19.81, IBP is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IBP indicates a slightly more expensive valuation: IBP is more expensive than 61.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.40. IBP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.81 |
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 62.69% of the companies in the same industry.
IBP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. IBP is more expensive than 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.01 | ||
| EV/EBITDA | 14.62 |
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.
IBP's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)0.74
EPS Next 2Y12.84%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, IBP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, IBP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, IBP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
IBP has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IBP pays out 25.88% of its income as dividend. This is a sustainable payout ratio.
DP25.88%
EPS Next 2Y12.84%
EPS Next 3Y15.05%
INSTALLED BUILDING PRODUCTS
NYSE:IBP (4/23/2024, 1:35:58 PM)
235.78
+12.35 (+5.53%)
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 Cap6.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.81 | ||
| 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)1.45
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.31% | ||
| ROE | 36.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.33% | ||
| PM (TTM) | 8.77% | ||
| GM | 33.5% | ||
| 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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.62 | ||
| 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)14.73%
EPS 3Y33.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.08%
Revenue growth 3Y18.9%
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