TopBuild Corp.
TopBuild Corp. Fundamental Analysis
TopBuild Corp. (BLD) shows moderate financial fundamentals with a PE ratio of 19.72, profit margin of 9.65%, and ROE of 23.72%. The company generates $5.4B in annual revenue with weak year-over-year growth of 2.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BLD's fundamental strength across five key dimensions:
Efficiency Score
WeakBLD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBLD trades at attractive valuation levels.
Growth Score
WeakBLD faces weak or negative growth trends.
Financial Health Score
ModerateBLD shows balanced financial health with some risks.
Profitability Score
ModerateBLD maintains healthy but balanced margins.
Key Financial Metrics
Is BLD Expensive or Cheap?
P/E Ratio
BLD trades at 19.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BLD's PEG of -2.81 indicates potential undervaluation.
Price to Book
The market values TopBuild Corp. at 4.44 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.58 times EBITDA. This is generally considered low.
How Well Does BLD Make Money?
Net Profit Margin
For every $100 in sales, TopBuild Corp. keeps $9.65 as profit after all expenses.
Operating Margin
Core operations generate 14.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.72 in profit for every $100 of shareholder equity.
ROA
TopBuild Corp. generates $7.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TopBuild Corp. produces operating cash flow of $761.98M, showing steady but balanced cash generation.
Free Cash Flow
TopBuild Corp. generates strong free cash flow of $702.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $24.95 in free cash annually.
FCF Yield
BLD converts 6.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How BLD Stacks Against Its Sector Peers
| Metric | BLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.72 | 25.83 | Better (Cheaper) |
| ROE | 23.72% | 1278.00% | Weak |
| Net Margin | 9.65% | -43774.00% (disorted) | Weak |
| Debt/Equity | 1.36 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.94 | 10.63 | Neutral |
| ROA | 7.75% | -1539613.00% (disorted) | Weak |
BLD outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TopBuild Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
125.09%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
261.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
216.45%
Industry Style: Cyclical, Value, Infrastructure
High Growth