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Fundamental analysis: TopBuild Corp. (BLD)

Awarener score: 7.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Modest) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business has been growing at a very good pace. It's been great when measured against peer companies.
  • TopBuild Corp. business trend isn't so stable. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 6.7

  • BLD profit margins -on goods and services sold- are usually hardly sufficient. They stand well ranked against rival companies.
  • Business profit on sales tends to be very good. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 7.4

  • TopBuild Corp. profit -on goods and services sold- has been growing at a very good pace. It's been in good shape compared to competitors.
  • In recent years, earnings -on operations- have been growing at a very good step, which has been somewhat better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares more than average in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be a slight improvement compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was somewhat better than rivals.
  • In the previous years, growth on total net profit has been average, and almost average when measured against peer companies.
  • Earnings per share have grown at a normal rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 6.0

  • BLD had to pay sparse income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.2

  • TopBuild Corp. usually gets excellent returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.5

  • BLD usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands top tier when measured against rival firms.
  • The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is encouraging in relation to industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
  • The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks encouraging in relation to competitors.

Balance Sheet score: 4.9

  • TopBuild Corp. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be rather normal in relation to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains worse than most rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks encouraging in relation to peers.
  • Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers longer than two months after the purchase. It ranks great when measured against industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's rather normal in relation to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands somewhat better than rival firms.
  • Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
  • Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 6.1

  • TopBuild Corp. looks reasonable in relation to profits and financial position. It happens to be similar to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still similar to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks encouraging in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.7


BLD logos

Company at a glance: TopBuild Corp. (BLD)

Sector, industry: Industrials, Engineering & Construction

Market Cap: 5.18 billions

Revenues TTM: 4.35 billions

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, afterpaint products, fireproofing products, garage doors, fireplaces, closet shelving, roofing materials, and other products; and insulation installation services. The company also offers various services and tools to assist builders in applying the principles of building science to new home construction, which include pre-construction plan reviews, diagnostic testing, and various inspection services; and home energy rating services. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates approximately 235 installation branches and 175 distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

Awarener score: 7.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Modest) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).