INSTALLED BUILDING PRODUCTS (IBP) Stock Fundamental Analysis
USA - NYSE:IBP - US45780R1014 - Common Stock
257.76 USD
+5.84 (+2.32%)
260 USD
+2.24 (+0.87%)
Overall IBP gets a fundamental rating of 6 out of 10. We evaluated IBP against 61 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. While showing a medium growth rate, IBP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year IBP was profitable.
IBP had a positive operating cash flow in the past year.
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
The Return On Assets of IBP (12.47%) is better than 90.16% of its industry peers.
Looking at the Return On Equity, with a value of 37.68%, IBP belongs to the top of the industry, outperforming 98.36% of the companies in the same industry.
The Return On Invested Capital of IBP (16.60%) is better than 93.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IBP is significantly above the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.47% | ||
| ROE | 37.68% | ||
| ROIC | 16.6% |
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
The Profit Margin of IBP (8.60%) is better than 75.41% of its industry peers.
IBP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.73%, IBP belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
IBP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.62%, IBP is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
In the last couple of years the Gross Margin of IBP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.73% | ||
| PM (TTM) | 8.6% | ||
| GM | 33.62% |
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.
The number of shares outstanding for IBP has been reduced compared to 1 year ago.
IBP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IBP has been reduced compared to a year ago.
2.2 Solvency
IBP has an Altman-Z score of 6.19. This indicates that IBP is financially healthy and has little risk of bankruptcy at the moment.
IBP's Altman-Z score of 6.19 is amongst the best of the industry. IBP outperforms 90.16% of its industry peers.
The Debt to FCF ratio of IBP is 2.91, which is a good value as it means it would take IBP, 2.91 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.91, IBP is doing good in the industry, outperforming 70.49% of the companies in the same industry.
IBP has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
IBP's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. IBP is outperformed by 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 6.19 |
ROIC/WACC1.94
WACC8.55%
2.3 Liquidity
IBP has a Current Ratio of 2.78. This indicates that IBP is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.78, IBP perfoms like the industry average, outperforming 52.46% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that IBP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.28, IBP belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
IBP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.27%.
IBP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.81% yearly.
Looking at the last year, IBP shows a small growth in Revenue. The Revenue has grown by 2.12% in the last year.
IBP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.24% yearly.
EPS 1Y (TTM)0.27%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%11.58%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%2.31%
3.2 Future
IBP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.99% yearly.
IBP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.22% yearly.
EPS Next Y-7.47%
EPS Next 2Y-2.65%
EPS Next 3Y0.99%
EPS Next 5YN/A
Revenue Next Year-1.47%
Revenue Next 2Y-0.13%
Revenue Next 3Y1.22%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 23.24, which indicates a rather expensive current valuation of IBP.
65.57% of the companies in the same industry are cheaper than IBP, based on the Price/Earnings ratio.
IBP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.24, which indicates a rather expensive current valuation of IBP.
Based on the Price/Forward Earnings ratio, IBP is valued a bit more expensive than 65.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IBP to the average of the S&P500 Index (32.73), we can say IBP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 24.24 |
4.2 Price Multiples
67.21% of the companies in the same industry are cheaper than IBP, based on the Enterprise Value to EBITDA ratio.
IBP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 16.5 |
4.3 Compensation for Growth
The excellent profitability rating of IBP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-2.65%
EPS Next 3Y0.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, IBP is not a good candidate for dividend investing.
IBP's Dividend Yield is a higher than the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.36, IBP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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
34.18% of the earnings are spent on dividend by IBP. This is a low number and sustainable payout ratio.
DP34.18%
EPS Next 2Y-2.65%
EPS Next 3Y0.99%
257.76
+5.84 (+2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners107.15%
Inst Owner Change-2.97%
Ins Owners2%
Ins Owner Change-0.13%
Market Cap7.04B
Revenue(TTM)2.97B
Net Income(TTM)255.70M
Analysts54
Price Target245.23 (-4.86%)
Short Float %10.45%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend3.02
Dividend Growth(5Y)N/A
DP34.18%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.52%
Min EPS beat(2)15.06%
Max EPS beat(2)21.97%
EPS beat(4)2
Avg EPS beat(4)7.75%
Min EPS beat(4)-5.94%
Max EPS beat(4)21.97%
EPS beat(8)5
Avg EPS beat(8)5.45%
EPS beat(12)9
Avg EPS beat(12)7.38%
EPS beat(16)12
Avg EPS beat(16)9.5%
Revenue beat(2)2
Avg Revenue beat(2)4.26%
Min Revenue beat(2)2.61%
Max Revenue beat(2)5.92%
Revenue beat(4)2
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)5.92%
Revenue beat(8)3
Avg Revenue beat(8)0.9%
Revenue beat(12)5
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)1.98%
PT rev (1m)-0.28%
PT rev (3m)24.39%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)6.78%
EPS NY rev (1m)0.35%
EPS NY rev (3m)6.99%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 24.24 | ||
| P/S | 2.37 | ||
| P/FCF | 23.14 | ||
| P/OCF | 18.48 | ||
| P/B | 10.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.5 |
EPS(TTM)11.09
EY4.3%
EPS(NY)10.63
Fwd EY4.13%
FCF(TTM)11.14
FCFY4.32%
OCF(TTM)13.95
OCFY5.41%
SpS108.8
BVpS24.83
TBVpS-0.95
PEG (NY)N/A
PEG (5Y)0.84
Graham Number78.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.47% | ||
| ROE | 37.68% | ||
| ROCE | 22.55% | ||
| ROIC | 16.6% | ||
| ROICexc | 20.71% | ||
| ROICexgc | 43.48% | ||
| OM | 12.73% | ||
| PM (TTM) | 8.6% | ||
| GM | 33.62% | ||
| FCFM | 10.24% |
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%
ROICexgc growth 3Y9.03%
ROICexgc 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 Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.91 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 93.9% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 9.1 | ||
| Cash Conversion | 82.82% | ||
| Profit Quality | 119.05% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 6.19 |
F-Score6
WACC8.55%
ROIC/WACC1.94
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)0.27%
EPS 3Y27.6%
EPS 5Y27.81%
EPS Q2Q%11.58%
EPS Next Y-7.47%
EPS Next 2Y-2.65%
EPS Next 3Y0.99%
EPS Next 5YN/A
Revenue 1Y (TTM)2.12%
Revenue growth 3Y14.32%
Revenue growth 5Y14.24%
Sales Q2Q%2.31%
Revenue Next Year-1.47%
Revenue Next 2Y-0.13%
Revenue Next 3Y1.22%
Revenue Next 5YN/A
EBIT growth 1Y-2.62%
EBIT growth 3Y26.89%
EBIT growth 5Y25.87%
EBIT Next Year14.99%
EBIT Next 3Y6.76%
EBIT Next 5YN/A
FCF growth 1Y11.75%
FCF growth 3Y35.39%
FCF growth 5Y28.09%
OCF growth 1Y15.65%
OCF growth 3Y34.96%
OCF growth 5Y22.53%
INSTALLED BUILDING PRODUCTS / IBP FAQ
Can you provide the ChartMill fundamental rating for INSTALLED BUILDING PRODUCTS?
ChartMill assigns a fundamental rating of 6 / 10 to IBP.
What is the valuation status for IBP stock?
ChartMill assigns a valuation rating of 2 / 10 to INSTALLED BUILDING PRODUCTS (IBP). This can be considered as Overvalued.
Can you provide the profitability details for INSTALLED BUILDING PRODUCTS?
INSTALLED BUILDING PRODUCTS (IBP) has a profitability rating of 9 / 10.
How financially healthy is INSTALLED BUILDING PRODUCTS?
The financial health rating of INSTALLED BUILDING PRODUCTS (IBP) is 7 / 10.
What is the earnings growth outlook for INSTALLED BUILDING PRODUCTS?
The Earnings per Share (EPS) of INSTALLED BUILDING PRODUCTS (IBP) is expected to decline by -7.47% in the next year.