Installed Building Products, Inc.
Installed Building Products, Inc. Fundamental Analysis
Installed Building Products, Inc. (IBP) shows moderate financial fundamentals with a PE ratio of 21.62, profit margin of 8.65%, and ROE of 37.46%. The company generates $3.0B in annual revenue with weak year-over-year growth of 1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IBP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIBP demonstrates superior asset utilization.
Valuation Score
ModerateIBP shows balanced valuation metrics.
Growth Score
WeakIBP faces weak or negative growth trends.
Financial Health Score
ModerateIBP shows balanced financial health with some risks.
Profitability Score
ModerateIBP maintains healthy but balanced margins.
Key Financial Metrics
Is IBP Expensive or Cheap?
P/E Ratio
IBP trades at 21.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IBP's PEG of 3.13 indicates potential overvaluation.
Price to Book
The market values Installed Building Products, Inc. at 8.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.93 times EBITDA. This is generally considered low.
How Well Does IBP Make Money?
Net Profit Margin
For every $100 in sales, Installed Building Products, Inc. keeps $8.65 as profit after all expenses.
Operating Margin
Core operations generate 12.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.46 in profit for every $100 of shareholder equity.
ROA
Installed Building Products, Inc. generates $11.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Installed Building Products, Inc. generates limited operating cash flow of $75.50M, signaling weaker underlying cash strength.
Free Cash Flow
Installed Building Products, Inc. generates weak or negative free cash flow of $63.43M, restricting financial flexibility.
FCF Per Share
Each share generates $2.35 in free cash annually.
FCF Yield
IBP converts 1.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How IBP Stacks Against Its Sector Peers
| Metric | IBP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.62 | 23.45 | Neutral |
| ROE | 37.46% | 1195.00% | Weak |
| Net Margin | 8.65% | 2573.00% | Weak |
| Debt/Equity | 1.77 | 0.77 | Weak (High Leverage) |
| Current Ratio | 3.35 | 2.82 | Strong Liquidity |
| ROA | 11.43% | -8483.00% (disorted) | Strong |
IBP outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Installed Building Products, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.09%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
199.35%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
125.31%
Industry Style: Cyclical, Growth, Discretionary
High Growth